How can I ever get a home loan if I have bad credit?

Answer 1

Start saving money for a down payment. If you can come up with 20% (which may seem like a lot) of the purchase price, you will have more loan options available to you even if your credit is not the best.

If you can prove that you have a steady job and pay everything on time for the next 2 years, you would have even more options available to you.

The hard part of both is that they may mean renting for a while longer. The longer you show improved credit handling and a bigger down payment, the less it will cost you in the long run (interest rate over time).

Answer 2

Honestly, you probably can get a loan with bad credit. The bad thing is that it's not a loan you would want to take, as it could put you in a real bind. Be weary of those who promise the moon and stars!
First, you will want to clean up your credit. Most REPUTABLE institutions will want to see that your credit report has no open collections, no judgments, no liens. If you have filed bankrupcty, they will want to see that it's been at least two years since your date of discharge and that you've reestablished credit. The main thing is to address your credit issues first and foremost.
Next, pay down your debts. Debt-to-income ratios are a big deal. If you have a few open accounts, pay the balances down to less that 40% of the limit on your card. That will help your DTI ratio greatly. Also, if you have a personal loan or a car loan that you are paying on, wait until you have 10 months or less remaining. When seeking a pre-approval, lenders will not include any debts with less than 10 months remaining.
Finally, save as much money as you can. Houses are not unlike cars. If you've had bad credit in the past, put down as much money as possible to show good faith.

Human beings often like to take the past of least resistance. That path is not always the best. In order to buy your home, it might take time, but realize that a home is the biggest investment that you'll make. Take time and do it the right way. It will save you a lot of heartache! Good luck.

Answer 3

If you have bad credit, you may not be able to afford a home loan. Quite often you can get a home loan but you'll have a high interest rate. You'll want a suitable down payment and if you don't have a down payment, please realize you cannot afford the mortgage for the 15-30 year term. Stay away from creative financing (adjustable) or you'll end up realizing soon who the creative ones are that designed it. Straighten out your credit for the best interest rate but also straighten out your budget so you know what you can and cannot afford. My motto has always been, "if you can't have the best of everything, make the best of everything that you have."

Answer 4

Save up more money until you have 20 or more percent of the purchase price and while you are doing that make sure you are also doing things to raise your credit score...if you have more to put down you will get less PMI points and your rates won't be as high and so therefore you will pay thousands less over the life of the loan...If you have not been responsible with your credit in the past you may benefit from a financial planner to get your financial house in order before you buy a house...

Answer 5

i couldn't even get a home loan with great credit. it depends also on your annual income and debt-to-income ratio. you don't have to use a bank for a loan. look in the papers and online. there are home owners willing to finance the home if you have a large down payment. also, an easy way in, is the rent-to-own option. usually after paying rent on time for a year, the seller trusts you and offers you a contract to buy. mobile homes are easy to get into this way. sure you may not want to stay there forever, but you can fix it up and sell, then have a nice down payment for a home.

Answer 6

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 a straight 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 7

I know of a private lender that can help you with bad or no credit at all.
i got a loan of $150,000 from him when i had bad credit.You can contact them with their email,[e-mail]
Their interest rate of 0.2% is simply great..Why don"t you try there

Answer 8

I guess that answer is quite obvious. You don't. Maybe after you pay some bills, pay off some bills, and get your credit built up you may have a chance.

Answer 9

Ask an illegal immigrant, they are getting home loans like crazy...