Where can a person get a loan for buying a house when their credit is poor?

Answer 1

I work with Atlantic Mortgage and we deal with sub-prime lenders who help those in your situation. Contact me via E-Mail

Answer 2

I am an Operations Director for a mortgage bank with programs for all credit types. The statement above about Brokers having more options is not accurate at all, in fact , banks can broker the loan also. Or it can be sold as a much larger portfolio on the open market. The bottom line is what can you afford? Most loans with poor credit carry a higher rate, however, not the case if you qualify for a community homebuyer, first time home buyer program. Lower credit scores and alternative credit will be considered if you qualify under the other program guides. If you consider sub prime, 580 is usually the lowest acceptable score assuming you need 100% financing. Although I hear there is lender called 500fico that can do better...I am trying to get more info about them as well.

Answer 3

You have alot od good answers, but do need to mention that on FHA your Debit to income needs to be 41 percent or less. And on the My Community Programs, the underwriting decision is up to the different Lenders, and recently found out on a client that had a 566 middle score, nurse, good income, that they wanted a 620 middle score. Even though the program is ran thru the Do / Du underwriting engin, of FannieMae - it is all up to the Lender.

The rule of thumb is for most lenders is 580 middle credit score. What do you consider poor credit? Some of my clients thought they had poor credit, and they qualified.

Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down

Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). This will tell you the up-front closing cost (etc) associated with your loan. This is a estimate only - not the final - but it does help you figure things out.

Go to these websites

http://www.nehemiahcorp.org/

http://www.fanniemaefoundation.org/...

http://www.fha-home-loans.com/

http://www.freddiemac.com/

Answer 4

Depending on your credit score, you may find a company who does "sub prime" lending that may be able to loan you up to 100% of the loan. Even if you find that, you will still have closing costs that are not considered part of the loan when you're buying a house. The seller, if they wish, can contribute up to 6% (generally) of the sales price towards closing costs. This would help you limit the amount of cash that you would have to bring at closing. Typically, you could expect about 9% to 11% interest rate, or higher, on a 100% financing loan, depending on credit. So, depending on your situation, it may be better to rent for now, repair your credit and save money for a down payment. To get a free copy of your credit report, visit www.annualcreditreport.com. This way you can see what the lenders see when determining your credit worthiness.

Answer 5

Try Lending Tree or E-Loan. The shop out loans so there's bound to be brokers who have experience with handling clients with credit challenges.

I had credit issues brought about by a divorce, but was approved for a mortgage at a higher rate. Just be sure you understand what you're getting in to, because you don't want to end up paying more than you can afford.

Good luck.

Answer 6

ok first you have to pay all your collections if you cant pay ! just dont pay and dont answer they calls save all that money waiting for them to sell your account to another collection company and this will send you an offer discount (you pay 60%of you total debt and save all the intrest charges !and then you can go to a jewelry store or a used car dealer and buy a cheap car lets say 6,000 yor monthly paymrent will be like 200 a month and then 6 month later doing your payment on time you start to get credit offers by mail !!this is most of what most companies like latino credit offer to help you fix your credit but you have to pay them $60 for check your credit and sign a contract they get in touch with your collection agencies and they say they will negociate your debts for a % and you have to pay them your money and they ask you to change your phone num that way debt companies cant find you get desperate to loose your money and sell you acount for less money ther is when you get a chance to pay less, I LIVE THIS STORY believe me!! good luck !!!

Answer 7

depends on how poor. With 0 down and a score under 580, you dont want that loan.

Otherwise you want a mortgage broker-- not a bank-- becuase they have more venues to explore and options for you. Check the phone book.

Answer 8

I work for a major mortgage company. I would contact a mortgage company REFERRED to you and then ask if they have subprime programs, subprime is for bad credit borrowers

Answer 9

A Mafia Loan Shark is always good !!!