Any ideas for a new home purchase loan for a married couple with bad credit? we both have good paying jobs.?

Answer 1

2 options :

1) Save some money. A lot of money. Pay your bills on time for 12 months. Your credit score will improve and you'll get a better rate on a mortgage.

2) Look for a bad credit mortgage - you'll get a loan, but interest rates will be high.

There you go :

http://index-go.com/bad-credit-finance-mortgage.asp

Info about improving a credit score : http://index-go.com/improve-credit-score-get-out-of-debts-fast.asp

Good luck !

Answer 2

You have to know what you are qualified to purchase even if you have bad credit.

So the first thing you should do is contact a mortgage, complete a loan application, after which he will run your credit report. This credit report will give him your credit score. Get a cup of coffee or your favorite beverage when filling out the loan application this is not a 15 minute chore.

Your credit score will tell him what loan programs you are qualified for as well as the interest rate you can expect. This credit score will tell if you are able to get a 100% loan and if not how much cash you have to bring to the table as your down payment.

There are lots of documents and information the mortgage broker will need. I will give you a few to get you started.

#1 Six months of all bank statements you use currently, as well as any statements from your 401k at your place of employment

#2 One months of pay stubs from all that are going on the mortgage.

#3 Two years of federal income taxes and W-2s

After discussing the best loan program for you and agreeing on the program you want the mortgage broker will issue you a pre-approval letter.

Now once this has been established you should connect up with a real estate agent to find you a home. Upon finding a home you like the real estate agent will then prepare a sales contract for you and the seller to sign. The mortgage broker will order an appraisal of the house to prove the value.

Once all the documents necessary has been collected the mortage broker will order loan docs for the program that you agreed to earlier. Again don't plan on spending a lunch hour there to sign loan docs this is a process so be prepared to be there for awhile.

Don't sign the loan docs if anything change from what the mortgage broker explained to you. Call and get an explanation.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

Find a good mortgage broker. I was in a similar situation (but I'm single). My credit was mediocre and to make matters more difficult, I work in the service industry. Even though I make good money, it's hard to prove. My mortgage guy worked really hard ( I had to pay an extra point at closing) using payment records on my past bills (even utilities), explaining hits on my credit report etc. I ended up getting a FHA loan, (I have to pay a really small amount in extra insurance) and it was the best thing I've ever done. Even though I had to pay a little more in the beginning and throughout the life of my loan, I'm still paying about $100. a month less than renting. Good luck..Also look into a program called CHIPS....

Answer 4

The best advice I can give is to buy a home on land contract. We tried for 2 years to get a loan. We also had bad credit and both had great jobs. Finally after 2 years we have a home and we are buying it on land contract. I would check the local papers and check your area for FOR SALE BY OWNER signs. Trying for a loan with bad credit is hard, even if only one of you has bad credit. I wish you the best of luck, also do a search for home loans but I don't know if it will help. I hope you find a home. I do understand and know how hard that is, have a great day.

Answer 5

The first thing is to establish new habits. It sounds like you are in a place where you are building up assets rather than debts, so you are doing well with that.

The second step is to evaluate where you are debt-wise. You should pull your credit reports and dispute any items that are invalid.

Pay-off your existing debts. Also pay-off even the charge-offs because this will make you look more attractive even if it does not increase your FICO score.

Try to look for a rent-to-own situation. You often will pay somewhat of a premium, but you will ultimately end up with a cheaper payment than if you have to get a loan with bad credit. The rental period should give time a chance to improve your credit. You may also see if the owner will finance the purchase after the option period. If they will get them to agree to this in the original lease.

Answer 6

Most sub prime lenders have stopped offering 100% financing this last week. You probably have to come up with at least 5% downpayment. There are still some sub prime lenders to call. Countrywide is still offering 100% loans. You will have to qualify and show income and down payment or reserves. That is the extra money it takes to close and have at least 3 to 6 months of payments in the bank. You will qualify for around 3.5 times your income, that is a good estimate. If you have big car paments or debt, that number will go down.

Answer 7

You both have good paying jobs? Find out why you have bad credit. If you have outstanding debt, pay it off. Since you have good paying jobs, you can live like a miser and pay your debts off quickly. That will help you reestablish yourselves as credit worthy.

Answer 8

well i really don't know . you may have to pay more for you monthly rent