Do you have to have good credit to get approved for a home loan?

Answer 1

It just depends.
Humans are not unlike animals in terms of us wanting to take the path of least resistance. That path is not always the best one.
Having said that, if you want to take the easy path - $0 down, bad credit, no credit approval, you will pay for it in the end. You could have a really high interest rate or you could be talked into a loan that is not good for you (such as an interest-only loan, a balloon loan or an adjustable rate). Those loans work for some people, but if you have questionable credit, those are NOT the right fit.
On the other hand, there are plenty of reputable lenders who will give you a good rate if you have the patience to clear up your credit first. Most good lenders will want to see on your report:
-no open collections or charge-offs
-no liens
-no judgments
-a bankruptcy that's been discharged for at least 2 years (with reestablished credit)
-4 to 5 tradelines with an on-time payment history of at least one year
-a score of at least 620 (if they use the score. some lenders go solely by the credit history)
My best advice is to ask questions and fully understand the terms of the loan. Shop around and do your research. Ask about the interest rate, the loan type, APR, PMI, administrative and processing fees, etc.
Mortgage loans are a huge deal. Arm yourself with knowledge so you won't be hoodwinked!
Good luck!

Answer 2

There are many factors that go into the approval process.. and each bacnk is different in how they weigh these factors. Some banks have minimum credit scores they require but most dont.

If you have a low credit score often you can still get approved if you get a good down payment , or if can have a high steady income. So there are still ways around it. But having good credit certainly does help in many ways.

Answer 3

The worse your credit, the higher the interest rate. I think some places will loan money if your FICO is around 500 but the higher your score the better off you are because they will charge you higher fees if it's low. You can call a lender and with your permission they can pull your credit report and see what's in it and tell you whether they think they can work with you. Just remember that every time someone looks at your credit report it shows up on your credit report.

Answer 4

No you do not.

Just about anybody can get approved for a home loan with the sub-prime lending market the way it is.

You will pay a higher rate of interest and may have to make a larger down payment but if you have steady income and budget for the payment you can be approved.

Answer 5

In the current mortgage market, yes, unless you can find someone who will co-sign the loan for you, thus guaranteeing payment in the event of default on your part.

Answer 6

before yes...not necessarily anymore you can get whats called a prime sub morgate and buy a house..but statistics show that you will porbably loose the house later down the road..i recomend building up your credit with small purchases then trying to buy a house.

Answer 7

i hope its easy