bad credit home loans?

Question

My wife and i want to get out of our apartment in febuary, but we did a debt relief program that we are still in, and will be in in feb. We both have terrible credit now under 520, is it possible to get a home loan? we are going to hope fully buy in the 115-120 k range . any advice would help.

Answer 1

With the current state of the market, it will be almost impossible to predict what will be available to you in February. I will however give you some advice and a little inside info. The amount of money you can stash away for a down payment should be your top priority. In your case, you will need one. The more you put away, the better your chances of getting a loan. Your lender will require that you have some down payment (usually 10% down) and you will probably need a little help. There are lenders out there that will lend up to 65% to 70% of the purchase price of a home at a very high interest rate 13%+. If you are lucky, you might even get up to 80% but that depends if those lenders are still around in February. You will also have to ask the seller to carry a note for the amount you can't cover with the loan and the down payment. We'll take the worst case scenario other than being flat out turned down. You get a loan for 65% of the purchase price. That would be about $78,000 in your case. You have 10% down (hopefully) which is $12,000. You would ask the seller to do a seller carried second mortgage. This means that the seller would be willing to take payments on the remaining balance ($30,000) at a certain interest rate over a certain term in the form of a second mortgage. Usually 15 or 30 years. Best case probably is you get 80% financing. That would mean that your seller would only have to do a 10% ($12,000) seller carried second mortgage. Everything else stays the same. SO every month you would have 2 mortgage payments. One to the institutional lender on your first mortgage and the second to the seller on your second mortgage. Impossible? You would be surprised. It happens all the time and most of the nation is looking at a tremendous buyers market so sellers are willing to get very creative. You could also do whats called a lease to own. They are usually heavily in the sellers favor but can be used to puchase a home. There is also what are called wrap around mortgages that allow you to pay an actual mortgage payment every month without having to get a institutional loan. In many states, they actually allow you to be on title when the transaction is complete. Many counties, cities, and non-profit organizations have what are called down payment assistance programs. They will loan you funds to purchase a home and in some cases the loans do not have to be repaid. If those are not viable then there is always ACORN Housing. I attached the link. Be sure to check with your attorney or a good mortgage broker in your area since laws very from state to state.

Hope this helps.

Answer 2

For the past several years, you'd probably have been able to find a mortgage lender with some money down.

Now, however, the lending market is tightening up - and will continue to do so for the foreseeable future - and those subprime lenders are eating a lot of loans.

That said, it's highly unlikely that, with a sub-520 credit rating that you'll be able to get a mortgage loan without a substantial down payment. Substantial is the key word there. I'd suspect that loan would have some stringent conditions attached, also.

Answer 3

You must not watch the news or keep up with current events. You can forget a loan. Build your credit up by paying your bills on time & maybe in a few years you can get your home.. Currently people with good credit are having a hard time getting a loan because of all the recent bad credit loans that are not being paid by bad credit clients. (All over the news)

Answer 4

my bank doesnt extend loans to pple in debt relief programs...and we are a major sub-prime lender. I say hold off for a while until you get ur finances and credit scores up..in this market.alll u would really qualify for are the adjustables/interest only loans that are putting people into foreclosures anyway so are not good even if it does give u keys to ur house...

Answer 5

There are hundreds if not thousands of websites on the internet enumerating the ways to apply and receive home loan when you are plagued with bad credit issues. These sites help consumers with bad credit scores to increase the viability of their existing credit scores and set up loans regardless of their credit history.Companies that specialize in bad credit home loans; usually offer a wide range of options for consumers with bad creditBad credit hasn't stopped them from purchasing a home. There are several programs available for people with bad credit that helps to restore their credit status and to live debt free lives.

Answer 6

There are several housing finance companies that provides various home loan schemes. You can checkout if PNB Housing Finance Limited, bankbazar, icici have any loan options apt for you.

Answer 7

Go to a Home Mortage Broker and fill out some forms. They will tell you if you qualify for a home loan and for how much...

Answer 8

Possible...Yes. Just expect to pay a substantial down payment and a 10.217% interest on a 30yr fixed mortgage.