I am trying to buy a house because the neighborhood we are in is getting worse by the second, but we have horrible credit due to stupid kid stuff. Anyone know of a place that you can get a place with horrible credit,no down payment, low payments a month in a good neighborhood?
2007-05-23 07:40:36 · 12 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
It will be near impossible for a person with no down-payment and bad credit. Your bank probably will not help you because of your credit rating and most lenders will not finance 100% of the purchase price with bad credit. However, there are a couple of options. There are homeowners that will lease a home to you with a purchase option at the end of the lease. Usually, a percentage of the lease payment will be applied to a pre-determined purchase price as long as they are made on time. Some owners even take this a step further and are willing to agree to let you buy the house after you pay the mortgage payments for a minimum of one year. If you can prove that you have made 12 consecutive on-time payments (usually they will want cancelled checks or bank statements) then many lenders will allow you to refinance the property in your name which may allow you to avoid coming up with out of pocket closing costs.
Another method is called seller carried financing. Most lending institutions will lend 65% to 80% of the purchase price of the home if you have a job and a pulse. The seller would become the "second mortgage" and you would pay payments on the remaining balance to the seller until you either sell the house or refinance it down the road. You would have a first and second mortgage but that is not uncommon with 100% financing.
Hope this helps.
2007-05-23 11:49:15 · answer #1 · answered by Qpid59 3 · 0⤊ 0⤋
Don't look for the easy answer which would be getting a terrible loan with outrageous interest and closing costs.
Instead, call the largest bank in your area. They are required by law to set aside some of their loan money for low income people wanting to buy a home in economically disadvantaged areas. These loans are called community lending loans.
Ask what steps you would need to take to participate in their program.
You will have to work at cleaning up your existing bad debt, go to credit counseling & budgeting classes and other asssorted hoops to jump through.
In the long run you will have a house you can afford, with a mortgage that is possible for you pay off and actually own a home in 30 years.
2007-05-23 08:04:08 · answer #2 · answered by silligrl357 4 · 0⤊ 0⤋
its going to be very difficult. I would try talking to a real estate agent or your bank to get more information. I'm sure it also depends on your location.
Your credit will hurt your chances, as will no down payment. My partner and I are looking for a good home in a good safe area as well. We have great credit and have money saved for a down payment, but the monthly payments are still out of our range in all the good places in our area. But from my experience, it seems the more affordable places are not in cities or neighborhoods, but out in the country away from everything.
2007-05-23 07:46:22 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Your BEST option is to rent for 1 more year, save as much money as you can, while getting your credit score up a bit. Houses will be even cheaper a year from now because even more foreclosures are coming, driving prices down. The more money you save, the less you will pay in intereest during the life of that loan. You would probably ned to put down $30,000 to get a loand for the remaining $32,000, but you will still get a terrible interest rate
2016-04-01 04:26:23 · answer #4 · answered by Anonymous · 0⤊ 0⤋
we just got a home loan from our local bank at a good interest rate with 100 percent financing. We declared bankruptcy 5 years ago and still qualified. As long as your credit scores average to be over 625, then you should be good. You can improve your scores over just a few months by paying credit cards on time each month and paying a little extra each time. You still will need to have money for closing costs, which is usually around $2000. You can not finance closing costs. I tried using Lending Tree to no avail. Your best bet is to go around to your local banks and try to find the one that will accommodate you best.
2007-05-23 07:45:14 · answer #5 · answered by theflynnmom 4 · 0⤊ 0⤋
You want the realistic answe?.. Your parents.
There may be someone out there who will approve you. However, you are going to get charged terrible rates, and go into the home with no equity. 9/10 chance you are better off renting until your credit improves, or until you can get AT LEAST 10% down on the house. Everyone thinks they have to buy a house. There are so many people out there in terrible mortgages who would have beenmuch better off just waiting a a little longer until there financial situtation improves.
2007-05-23 07:45:38 · answer #6 · answered by Anonymous · 2⤊ 0⤋
No. You will, if you can even get a mortgage, pay usurious rates, will be expected to have a downpayment, and obviously will have higher payments due to the high interest rate. Look to move to an apartment/rental you can afford.
2007-05-23 07:44:38 · answer #7 · answered by acermill 7 · 0⤊ 0⤋
You need to fix your credit to start with, or find a loan agency that is ok with poor credit. Look into foreclosures
2007-05-23 07:43:10 · answer #8 · answered by minalerie 4 · 0⤊ 0⤋
Here on Earth? Not easy task. I wish I knew a place so I could by myself a house.
Keep on looking and if you find a place, PLEASE, let me know.
Good Luck.
2007-05-23 07:44:30 · answer #9 · answered by flora_pr48 2 · 0⤊ 0⤋
buying a house with a lease option or rent to own is the only way
2007-05-23 07:44:26 · answer #10 · answered by carly sue 5 · 0⤊ 2⤋