I would like to buy a house but I have terrible credit. I can put down 15k on a 190k house. What options do I have to get a loan? Could I form a corporation? Any advice is appreciated.
2007-06-08 08:45:14 · 12 answers · asked by Michael W 1 in Business & Finance ➔ Renting & Real Estate
Sure, you could get a co-signer, but anyone who would co-sign on a 30 year obligation with someone who has terrible credit would be crazy to do so.
Talk to a mortgage broker. If your credit is above about 620, you can probably get a house with 5% down, but at a higher rate than if you had better credit. If your credit is worse than 620, you should probably try to save up more money and repair your credit in the meantime.
2007-06-08 08:52:42 · answer #1 · answered by aj485 5 · 0⤊ 0⤋
You will not be able to get a loan without first paying off your creditors. If this is something your are not willing to do then you will need someone else to co-sign the loan and then there is still no guarantee since your credit is shot. You could try to get an owner financed home. This is where the owner is willing to carry the loan for the home. The only bad thing about that is you will not get a good credit rating for paying your home off as most owner lenders do not report to the major credit agencies.
If you do decide to go ahead and pay off your creditors they most normally will take 1/3 to 1/2 of the original debt amount if you contact them, offer them the lowered amount and be ready to pay them via phone on the spot. This is really your best option as the write offs and other bad credit will not just go away and will affect your major buying your entire life. Your interest will be higher on everything from cars to secured credit cards.
Good luck with your credit and home search.
2007-06-08 08:54:08 · answer #2 · answered by phxmilitarymom 5 · 0⤊ 0⤋
You don't buy a house with terrible credit. You rent until you save up a down payment and fix your credit. Not everyone can be a home owner.
2016-05-20 02:05:30 · answer #3 · answered by ? 3 · 0⤊ 0⤋
You have to fix your credit. Start paying your bills on time and go to creditors that you didn't pay before and get it paid.
Two years on a job and all your bills paid and a down payment you should be okay. But keep saving and show that you can pay your bills on time.
My wife works for a construction company as an accountant.
They take your gross wages from a job you have been on for at least two years. The house payment cannot exceed one weeks wages or 25%. Your car payment or what they call transportation expenses has to be under 25% of your wages.
Your credit cards and all bills utility and Etc. Has to be under 25% leaving you one free check [weeks wages] for medical, food, clothes, household expenses.
So if your making 600 car payments and your wages are 500 week maybe your not getting a house.
come back with the chart for 190,000 with 15,000 down.
accessed financial page: 30 year fixed mortgage 6%
the down payment for a 190,000 is $37,980 The payments are 911. per month and monthly wages must be close to 4,000 per month. Car payment can not exceed 800. per month figureing in transportation expenses. Credit cards and utility expenses all together cannot exceed 900. per month. That is the chart. Wether you have a co-signer or not.
2007-06-08 09:00:08 · answer #4 · answered by Steven 6 · 0⤊ 0⤋
It is in your best interest to fix your credit. If you do find someone to give you a mortgage, the interest rate will be ridiculous.
You could form a LLC or a corporation, but unless you have at least a two year track record, the lender will want the names behind the paper, and you will be back to square one.
2007-06-08 10:01:48 · answer #5 · answered by godged 7 · 0⤊ 0⤋
It is going to be nearly impossible and the companies that are willing to help know that you are a high risk and will charge you accordingly.
Lets face it, you did not pay some bills in your past and now you want someone to give you $175k.
You need to fix your credit or save the money to buy your own house. Either way it will take time.
2007-06-08 08:50:33 · answer #6 · answered by PJ 5 · 1⤊ 0⤋
You should have at the very least 30K for down payment and closing costs. While you are saving the rest of your down payment, improve your credit. Once your credit is improved somewhat, you should look into FHA loans, which have low down payments and are often a little less strict than prime loans.
You also should look into a home ownership organization such as ACORN housing for assistance in getting yourself ready for home ownership.
2007-06-08 09:05:40 · answer #7 · answered by VATreasures 6 · 0⤊ 0⤋
From experience you'll be hard pressed to find a mortgage with bad credit. Repair your credit instead...takes about two years for the good to off set the bad. That's what it took for me to purchase our first home.
2007-06-08 08:53:23 · answer #8 · answered by Anonymous · 0⤊ 0⤋
You can pay cash. Or you can find someone willing to sell on a land contract. Or you can look for a rent-to-own deal. With bad credit, you should not be trying to borrow money.
2007-06-08 08:48:51 · answer #9 · answered by regerugged 7 · 0⤊ 0⤋
Why would anyone give a corporation money that is owned by someone who will not pay PERSONAL loans back?
Seems to me that you need to get straight before you'll ever be able to borrow money.
Why not join the army?
They will straighten you out AND you'll be able to use the VA to guarantee your loan in the future....hmm?
2007-06-08 08:57:03 · answer #10 · answered by bhd8ball 1 · 0⤊ 1⤋