How can you get a loan to buy a decent first home when you have horrible credit?

Answer 1

The first thing is do not try and go through many lenders. Going through a place like lendingtree.com pulls your credit over and over, depleating whatever score you might have.
I can suggest www.decisionone.com this is a mortgage company that specializes in hard to get mortgages.

Best of luck to you!

Answer 2

Buying a home isn't like buying a car. As long as your debt to income ratio isn't way off balance you probably stand a chance. Get your credit report and close any accounts you see there that are open but that you don't use. If there is anything on them that you know isn't right, you can dispute these with the credit reporting agencies. Then, start being reasponsible with your finances. Give it six months and check your credit report again. You'll be looking at your credit score. If you've done your part it should have improved. Now go to a lender and ask them how likely it is that you can get a home loan.

Answer 3

I found this report online that give tips to 1st time home buyers. I would make sure you check with a lender that does FHA Loans, Rural Housing Development Loans, and some states have loans also. Most programs don't care what you credit scores is, but you may have to pay off a certain amount of collections if you have any on your credit report. Some programs require money down and others don't. There are also some non profit orginazations that place down payments for you.

Check out this report
http://www.freelansingrealestatetips.com/buyer_secrets.aspx

Answer 4

Hello,
You can secure a loan with a down payment of at least 20% down from any lender ,some lenders are not as strict as other you should know that it will help you in the future.I would try a mortgage broker they use several lender not just one or two like banks,etc.If you can put down 20% for a home that is great the only thing that would stop you then would be if your debt to income ratio is to high you need to have less than 40 to 50% debt or no one will finance you.

Answer 5

You won't be able to unless you have a substantial down payment. Otherwise, save your money and pay your bills on time... in 6-12 months pull your credit report again and have a Loan Officer evaluate your situation.

Answer 6

Now is not the time to buy. I would work on getting my credit cleared up and start saving a few dollars for a down payment or closing costs. No hurry! The work you do in the mean time will help you when you are ready to buy.

Answer 7

With cash. Your credit score shows lenders your ability to pay back a debt. Since a home is a large investment, it is very risky to lend this large amount to one with bad credit. Work on your credit, clean it up and you can get that dream home with little or no out-of-pocket cost.

Answer 8

It really depends on how bad the credit is. I have done loans on people that had horrible credit.

Answer 9

The best way is to save up for a big down payment. With say 30% down you will also probably get a decent interest rate.

Answer 10

There are many first time buyer programs in the USA, go to HUD: http://www.hud.gov/buying/index.cfm, and Consumer information: http://www.pueblo.gsa.gov/ both will help you find all the information you need to buy your first home including information on foreclosures and auctions which may enable you to get more for your money. The federal government in the USA has many programs to help first time buyers, use them and you will get your home! Good Luck!!