if 2 people buying a house both have poor credit is it better to go ahead for a mortgage together OR?

Question

have one of them do it as a first time home buyer? what are options to people with crap as credit? i have a mortgage but we're selling the house so i wont have one anymore but what is the best pay and some possible options we run across?

my credit is crappy because of medical collections and overly obligated, i always pay on time and more than the minimum but it doesnt help with those collections and his is bad because lack of credit and 2 small collections that we're now takign care of.

oh yeah we're engaged and getting married in 2008 with 2 kids been together 7 years

Answer 1

First, if you aren't married, don't buy a house together. If you break up that will be problems down the road.

I suggest you rent for a while and pay off your debt and save for a good down payment. If you have proceeds from your home sale, use it to pay off your debt. Then save for a new down payment.

I also suggest you read The Total Money Makeover by Ramsey. He has a step by step plan on getting out of debt, buying a house, saving, etc.

Answer 2

Try a mortgage broker, they have lots of lenders (I have about 150 myself) and some creative programs for people in situations like yours.

You'll probably end up in a 2 year ARM in the beginning, to improve your credit, but if your L.O. is worth his salt, he'll keep in contact with you and coach you a bit about what to do to get you out of the ARM before that 2 year period is up, sometimes in as short as 6 months.

You'll probably need some sort of down payment if you don't want an extremely high interest rate.

Your broker will be able to tell you best, after you describe the situation to him and he looks over the credits, whether or not to apply jointly.

If you have more questions, or want some more info, email me or check out our website.

Thanks,
Kevin

[e-mail]

http://aapexfund.com

Answer 3

Is your present mortgage current? Is there any outstanding bills that are not paid? What makes you believe that the credit of the two people is poor. These questions need to be checked closely. Does the two people live together now? Are they planning to live together after the purchase of the new property?

All of these things have to be considered when trying to answer the question you have asked. Do both adults work? Are you willing to reconfigure your personal expenses to benefit the over all good?

Answer 4

A lot of the bigger mortgage companies have special departments to help those with bad credit get into a house. I would talk to one of these people to discuss options. Y! Answers is a great place to get simple answers to Simple questions, but as this is a MAJOR item in your life, get a pro to help you.

Answer 5

if you both have crapy credit than you need to wait until you improve it. It is crapy for a reason. If you can qualify, you will be paying through the nose for the interest. That is not much of a choice you give the lenders: 1 crapy borrower or 2?

Answer 6

it is purely unlikely to ensue till you get the two one in all your credit scores to the 650 selection. you would be seen for a private loan in case you had a downpayment of 50% or greater (that mitigates lender loss in case you fail to pay). besides, are you figuring in ALL expenses for that very own loan fee, alongside with assurance and tax escrows ? there is greater to a private loan fee/abode possession than the backside critical and activity quantities.

Answer 7

people with crappy credit do not have many options. you'll be luck if you do get a home loan. good luck

Answer 8

I don't know if its better, but it may be easier to get a loan approval.