How do I get a mortgage with lousy credit?

Question

i have several late or missed payments due to job security problems but i want to refinance to get out of trouble - how do I do it? And who will look at our situation without penalizing us for the past?

Answer 1

Pay your missed payment.
Or pay high interest.

Fix up your mix up, before going forth.
You can not go forth positively unless fix past negative.

Call your debtors, tell them you want to either make a settlement, or payment plan, stick to that for 6 month to a year, and this way your credit report can reflect some consistentcy...

Answer 2

Hello there,

dont worry you are not out of options..

All lenders throughout America have different guidelines in which they lend money..

Soe lenders (most larger retail banks) specifically lend to people with good credit, and good income.. They shy away from what is considered a "high risk loan"... These lenders are called conforming lenders..

What it sounds like you need is a non-conforming lender.. This is a lender that has progrmas for almost every borrower..

What you need to realize is that no matter what you do, you are going to get penalized for your past errors.. What i mean by that is you are going to wualify for a much higher interest rate on a mortgage with bad credit..

The thing is that your past payment history, employment history, debt, credit, gives a clear picture of how you handle finances.. You have to understand that you are asking a lender to invest thousands of dollars into you when you have been known in the past to miss payments, and be late on payments..

Now, lenders also can realize and accept that life is life.. People make mistakes, go through hard times, have unexpected things come up (loss of job ,medical, etc). But again because a lender is taking on a much higher risk by lending money to you , as opposed to someone with great cresit, your interest rate will vary accordingly..

Now thats no reason that you should be worried though.. In the mortgage industry, when looking at your paymetn history, we are MAINLY FOCUSED ON A 24 MONTH HISTORY..

The thing is that if you refinance into the right mortgage plan (will probably be a high rate) and you basically start fresh.. You for the next 2 years make every single payment ON TIME, dont take out credit cards, and dont take on any new loans.. In 25 months, if you do everything that your loan advisor suggests, then you r credit can rise as much as 200 points...

At that point if you have taken all the right steps, you can refinance into a LOWER FIXED RATE, with a Conforming lender because you will no longer be considered high risk..

The way i always explain this to my clients is that you have to crawl before you can walk, and you have to walk before you can run.. One you have changed to a new mortgage company in which you can start fresh, and you retructure your finances so that you can NOT miss or be late on bills, you will be in a much better situation...

Its a pretty easy process, you just have to be dedicated to turning around your credit.. I have been a mortgage loan oggicer for 13 years, and have sucessfully completed these 2 step process for hundreds of clients across America.. (Refinance, wait 2 years, refinance again)

I dont know how low your credit score is now, but i have programs for as low as a 500 credit score.. I work for a nationwide mortgage lender, so feel free to call or email me at any time for questions...

Good luck to you, look forwarding to helping you!

p.s. i have closed mortgage loans, both refinances ans purchases for over 40 people from this site.. I have references that can attest to that as well..

Jason Fry
Licensed Mortgage Loan Officer
Providential Bancorp
[e-mail]
312-550-5583

Answer 3

You have to have a steady employment history, and a history of making payments on time....

There is no easy answer for you

you can pay a hideous interest rate now, or you can wait till later when you have better credit

Answer 4

Hi, You might try here and see if they can help you out. the address is http://territhomas.PWSmortgage.com