IMy credit is not great at all, I have heard even with bad credit it is easier to be financed for a house than it is to be financed for a car. Like you request a loan for a house and a car the exact same day and exact same time to the minute. You may get approved for the house but not the car, anyone have any expierience or inputs on this?
2006-09-28 12:30:42 · 6 answers · asked by Joshua Y 1 in Business & Finance ➔ Credit
I've heard that too - that it's easier to get financed for a house than a car. I've also heard that if you are in the market to buy a house AND a car, that you should get the house first (I am not sure of the reasoning behind this philosophy - apparently you will have an easier time qualifying for a home loan this way). My wife and I just got financed for and purchased a vehicle. We are also in the market to buy a house. However, we were told we would each have to bring our credit scores up by approximately 80 points in order to qualify for a home loan. I suppose it also depends on the lender you deal with - some are willing to work with people with lower credit scores, but this of course, means you will not get the best interest rate and will end up paying a higher interest rate on your home loan.
2006-09-28 12:44:54 · answer #1 · answered by BRIAN W 3 · 0⤊ 0⤋
Well first off if you want both ... do the house first then the car. You might not get a mortgage for the house if just buy the car first. After you have the house then go get the car. Both can be hard and both can be easy. I do believe that getting a house is a bit easier then getting a car because value in a house tends to go up and value in a car tends to go down. So the bank would be more likely to fund something that could maybe make a profit down the road.
2006-09-29 20:55:50 · answer #2 · answered by cargrl 3 · 0⤊ 0⤋
A house is probably easier to get assuming you have steady income. This result is because private home mortgages are insured by the Federal Housing Administration. A car loan however is not insured by the government.
Of course your interest rates will depend on your FICO score. Applicants with poor credit history can be expected to pay a higher mortgage rate.
These days it seems that more and more people with sub-prime credit can get car loans; they'll just charge an arm and a leg for your interest rate.
2006-09-28 20:55:09 · answer #3 · answered by inpoetry1 3 · 0⤊ 0⤋
I don't know for sure. What I do know is the car starts losing value as soon as you sign the paperwork. The house may increase in value over time. All else being equal, the bank is more likely to lose money repossessing the car than foreclosing on the house.
2006-09-28 19:37:30 · answer #4 · answered by STEVEN F 7 · 0⤊ 0⤋
I have a very bad credit score right now and I was able to get a new car but I also had to trade in a nasty car
2006-09-28 20:01:46 · answer #5 · answered by Sandra C 4 · 0⤊ 0⤋
A car. You need to show less income for a small car loan.
2006-09-28 19:38:35 · answer #6 · answered by Papa John 6 · 0⤊ 1⤋