Bad Credit Home Loan?

Question

I have recently become engaged and am starting to stress out. My fiance and I want to start looking at houses and neither of our credit is great. I was turned into a collection agency once for 600 bucks, but besides that have paid my student loans and other bills on time usually. Is it impossible for us to get a home loan?

Also, I have an income of 150,000 from just me and my husband makes around 100,000.

Answer 1

Yes. Although lenders are tightening their guidelines due to increased default rates, there are still many lenders willing to lend to those with poor credit. As long as you have several trade lines, you should be fine.

Answer 2

It probably isn't impossible, but the question to ask yourself is if it is wise to purchase a home at this time. Marriage is very difficult, and starting off with a mortgage may add undue stress. My suggestions would be to pull a copy of both your credit reports, and determine what you need to work on. Pay off the smallest balances first, and work your way up to the highest. If there are any collection items, pay those first. Collections can kill a home loan pretty quickly, and with the bad credit (sub prime) market tightening up lately, the better shape you are in the better.

Dispute any incorrect items with the bureau, providing any proof to back up your claims. If there are any items older than 7 years and are negative, ask that those be removed.

Viewing your credit report before you apply for a loan, will ensure there are not any surprises or dissappointments in the process.

Work on saving a downpayment. If you go FHA you will need between 0 and 3% down, in addition to $3-5K in closing costs, dependng on what you get the seller to pay for (normally the title policy and the survey). If you go conventional, expect to put between 0-10% down ALL depending on your credit score. It is possible to get a 100% financing if you have above a 620, but be aware the lending market is changing rapidly lately, and the minimum credit score may be raised by the time you apply.

Another suggestion I would have is for you to rent the cheapest apartment you can find, and put the rest of the money in savings towards a down payment for a house in about 2 years. (We require a 2 year rental history for our applicants, as well as, a 2 year work history.) Or rent a small house. Keep in mind that no one but you will be paying your rent/mortgage, so keeping up with the Jones is not important. Also, think of how much house you can afford. Be realistic. You would hate to stretch yourself so thin, and be able to afford the mortgage, but it would be so high, you couldn't afford drapes for your new home.

Answer 3

No It is not impossible at all, there are so many loan programs out there now, I am a mortgage loan officer, I would suggest not using an online mortgage company or broker, you will be charged alot more fees than at a local bank, I would try a local bank first they usually have better interest rates, if you cant get approved their, I would try a local mortgage broker, that can help you find the best rate for you and your fiance's credit score.

Answer 4

Bad credit is one of the worst problems to have... however there exists a solution.

I will hereby talk from my personal experience.

I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,

a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :

http://umgarticles.atspace.com/debt-consolidation.htm

if it helps kindly remember me in your voting!.. cheers!

Answer 5

For Finance and credit solutions I always visit this website where you can find all the solutions. http://INSURANCEANDFINANCETIPS.INFO/index.html?src=5YAojmqfNU741

RE :Bad Credit Home Loan?
I have recently become engaged and am starting to stress out. My fiance and I want to start looking at houses and neither of our credit is great. I was turned into a collection agency once for 600 bucks, but besides that have paid my student loans and other bills on time usually. Is it impossible for us to get a home loan?
Update: Also, I have an income of 150,000 from just me and my husband makes around 100,000.
1 following 8 answers

Answer 6

you should be able to get a loan keep looking i have one for you at five stars mortage they help me I have bad credit like you I wish all the best

Answer 7

I found some good info here.

Answer 8

You should be good to go.

Good luck !

Answer 9

www.loan.com