2007-01-17 05:15:26 · 7 answers · asked by dmp 1 in Business & Finance ➔ Credit
There are so many factors here. First off what is your debt to income ratio? also do you have any judgements against you?
Mortgage brokers do not like those things. There are some mortgage brokers that deal with subprime borrowers. But you will pay in high rates and costs. Typically you will have less house for a lot more money and may find yourself trapped in the long run.
but in any case i can gaurantee you will need money down. Anywhere from 15% to 40% depending on broker and credit.
I am unsure what is making your credit so bad but if i had to guess it is late payments, collections, charge offs, or what? I would strongly urge you to rethink your home buying right now and to get down to the nitty gritty which is your credit. If it is as bad as you say, you are going to need to really work on that. If you are not paying your bills and your credit report shows that, then the mortgage broker will know.
So my advice is put the house off for a couple of years and get working on improving your credit. For example any bills you have pay them on time. Lower what you owe on charge cards. Get the car you are financing paid down and on time. Keep your credit accounts open and don't change them to a new card. Keep those balances low.
Also pull your credit report and review it carefully. Anything in collections see how long before it comes off. Watch them like a hawk to. If you keep negatives from going on and keep a good payment history your score will begin to improve.
I do not know the specifics about your credit reports so I can't advise what to tell you to do. check out the link I provided for some help.
2007-01-17 05:35:24 · answer #1 · answered by logan 5 · 1⤊ 0⤋
Not only does approval depend on your credit score, it also depends on your debt-to-income ratio, your outstanding debt, and the loan-to-value on the property you want to mortgage. All these factors are taken into account in determining your interest rate, etc.
For example, you could have a credit score of 500, but you could probably still get approved for a home loan if you were earning a lot of money, did not have much outstanding debt, and was looking for a small loan. These are just hypothetical numbers, but I bet that if you were earning $250,000 a year (and verifiable through W-2's and pay stubs), had no outstanding debt or had a credit card with a $10,000 limit, but only a $1,000 balance, and were looking to purchase a $250,000 home but only needed to borrow $50,000 because you were going to pay the remaining $200,000 in cash, you could have really bad credit but still be approved for a loan.
2007-01-17 05:23:59 · answer #2 · answered by jseah114 6 · 0⤊ 0⤋
Even people with bad credit can get a home. Lenders know that everyone - even those with credit problems - will pay their mortgage. After all, you need a roof over your head. Best thing to do is to get your credit report and credit score and start working on it. Don't worry about the past; that's over with. Pay your current bills on time. That's more important that anything. In 6-12 months you should see improvement.
2007-01-17 07:28:15 · answer #3 · answered by Kevin K 3 · 0⤊ 0⤋
YOu just have to see what kind of loan options are available...YOU will get approved somewhere, but you will probably have a very high interest rate, or put a big downpayment like the other guy said...
2007-01-17 05:20:00 · answer #4 · answered by brooklyn7582 5 · 0⤊ 0⤋
You will need a sizable down payment to start with. From there you will just have to see what options you are given as it does depend on your credit history.
2007-01-17 05:23:13 · answer #5 · answered by Anonymous · 0⤊ 0⤋
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2007-01-17 05:19:32 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Make a big down payment.
2007-01-17 05:18:26 · answer #7 · answered by Anonymous · 0⤊ 0⤋