2007-07-18 11:57:08 · 9 answers · asked by Brandonn 2 in Business & Finance ➔ Credit
First off, don't even THINK of dealing with the scam artists who SPAM Yahoo! Answers. They can't even abide by the community guidelines so why would you EVER trust them with something like the major expense of a home purchase?
OK, down to some real advice that might help you in the long run.
While there are undoubtedly plenty of lenders who will happily rip you off due to your current credit situation it would probably make much more sense to take a couple of years to get your credit scores into the 'A' paper range. With poor credit you'll wind up paying up to twice as much per month for your mortgage payment than if you can hold off for a couple of years.
Right now, home prices are on the slide in many parts of the country right now and this can actually work in your favor. Prices may drop a bit more while you build up your credit score, saving you even MORE money in the long run. And even if they don't, we're not likely to see anything like the absurd inflation in property values that we did over the past couple of years. You might pay more for the house, but your payments would still be lower with the lower interest rates.
I've been down that road in the past -- paying way too much for the money due to bad credit. The home I live in now cost nearly 3 times as much as the one I bought years ago with bad credit but my payments are 25% LOWER than they were back in the bad old days!
Do yourself a favor and save the difference in monthly costs towards a down payment for a couple of years and let time work its magic on your credit score. You'll be VERY happy that you did in the end.
2007-07-18 13:09:43 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Actually you only need a 580, sometimes 560 to use a sub-prime company and get a mortgage. I would work on improving my credit score first, though, b/c a 620 credit score would get you alot lower interest rate.
First, get a copy of your credit report...there are several companies on-line with a 30 day free trial offer. If you have any collections, get them paid off. Next, work on lowering your credit card debt to less than 50% of your available credit, prefferably closer to 25%. Lastly, make sure you make all your payments on time because that affects your credit score greatly.
If you work on these steps, you should see your score increase in a few months to where you can get a solid interest rate on a mortgage.
2007-07-18 12:07:30 · answer #2 · answered by ECH 2 · 1⤊ 0⤋
Basically anyone can get a mortgage. It just depends on how high of an interest rate you are willing to pay. Try companies like Quicken loans. Lots of lenders have programs for people rebuilding their credit. You will be looking at mostly sub prime products at high interest rates. If you can wait a few months, work on your score and your interest rate will be better. Good luck.
2007-07-18 12:18:08 · answer #3 · answered by KAT 2 · 0⤊ 0⤋
I'd imagine eventually you could but it would be a long, difficult road. Your interest rates would be outrageous as well as your payment. If I were you, I'd find a nice place to rent and worry about raising my score. Right now isn't exactly the best time to be home shopping anyways as the interest rate is the highest it's been and that's for people with great credit. Wait a while, up your score, and before long you'll be able to get the home of your dreams for a decent price!
2007-07-18 12:09:26 · answer #4 · answered by arielmoonstar 2 · 2⤊ 0⤋
With the subprime fall out as of lately and the tightening of the standards, if you have 20% down payment and the closing cost should be no problem. If you are looking for 100% financing it is just not going to happen, and if some loanshark should approve within a year the change in interest rates would put you in foreclosure.
2007-07-18 12:50:48 · answer #5 · answered by Pengy 7 · 0⤊ 0⤋
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2007-07-18 18:50:18 · answer #6 · answered by Anonymous · 0⤊ 0⤋
You have to have at least a 550, and with a 550, you have to put down about 20%. You would be considered a sub prime borrower, which is a risky borrower.
2007-07-18 12:09:13 · answer #7 · answered by SoSickWitIt! 2 · 1⤊ 0⤋
no I would not think so I say you would have to have at least a 700 credit score . good luck though and shop around . we just moved into our first house and we have a 740. and they told us that was hard . so good luck .
2007-07-18 12:01:15 · answer #8 · answered by Kate T. 7 · 1⤊ 0⤋
Yes you can, your rate will be high though.
2007-07-18 12:05:17 · answer #9 · answered by Dnaleri 3 · 0⤊ 0⤋