first time buyer and bad credit?

Question

We are in Indiana. He wants to purchase a home for 57K.....what lender would be the best to use?

Answer 1

im a mortgage broker in michigan im licenced in all states, if it is a modular or mfg. home i would say greentree, if it is a stickbuilt i would go FHA, if you have anymore questions or need help getting approved contact me [e-mail]

Answer 2

Don't lose hope if you're looking to buy a home. There are so many different ways to fund a home now, just about anyone with any kind of credit can get into a home, regardless of credit situation.

Of course, some will cost you more money in the long run, but a home it's still one of the best investments that you can make, so, in many cases, it's worth it, especially for the first year of ownership.

You should shop around, and ask different lenders what kind of programs they have, and if they can help. Try to find a lender that specializes in bad credit mortgages. You can find some bad credit mortgage lenders listed on this page on and off:

http://www.axalda.info/bad-credit-mortgage.html

Answer 3

With a low score you will find it very, very challenging, if possible at all, to find mortgage financing at this time. Wholesale lenders are dropping like flies, I was notified of 2 more in the lst 2 days which brings it to a total of 5 ( at least) in the last 2 weeks alone.

"A" paper investors are also tightening guidelines considerably. They are raising qualifying credit scores, decreasing the acceptable loan to value on products, and no longer accepting stated, no doc, NINA and SISA loan types with some making an exception for self employed borrowers.

The best thing you can do at this point is to maintain excellent credit and save some money. Keep a couple of accounts open but pay them off monthly so that you build your credit score, having no credit can be as challenging as having bad credit.

Let the markets settle down and give it some time. As things improve lenders will become more lenient.

Answer 4

this is a toughy, because most lenders do not lend on a single family home anymore that is under 50,000. your place is 57,000 but with bad credit you need 15%-20% down if you want to get a decent interest rate, thus making the loan under $50,000.
last i knew only 2 "real" lenders were doing that type of loan, and one was wells fargo.
be warned of the buying points game mrs. first time buyer.
be warned of brokers just the same.

Answer 5

You'll normally go through a Mortgage Broker who in turn "shops" for the best Lender for you. Beware as the Broker can make a TON of cash off of you if you are not careful. They prey on people with below average credit . Review all your Loan Documents with a person very knowledgeable in Mortgage/Real Estate or even use an attorney. Good Luck.

Answer 6

Here are many first time home buyers programs available. You may start by calling the city Housing Office in your city or the county housing officemortgage brokers or institutions that are authorize to administer the program. These agencies are normally listed on a pamphlet.

Answer 7

With the market tightening up you can basically forget about getting a subprime loan, they are shutting down financing for Alt-A credit.(those with fair to almost good credit) If you have 10-20% down plus closing costs you have a chance, but will pay a premium in interest rates. Best bet would be to save some money and improve your credit

Answer 8

How bad is your credit? If its so bad that the only way a vendor will finance you is by getting an adjustable rate DO NOT do it....my friends did that b.c they had bad credit and their payment went up $500 a month!!!! So get a fixed interest rate...I would call a realty company, they deal with multiple vendors and can help find who you need.

Answer 9

The one that can give you the best loan. But for Pete's sake, don't get an adjustable rate mortgage. They're horrible and if the rate goes too high, you could lose you home.

Answer 10

id actually be a great person to work with. im with a small private business. i work with over 2,000 lenders to find the best rate instead of you just getting one rate from one lender. shoot me an email and ill help you find a good one. dont worry, im against all forms of adjustable rates, i dont screw people over. thats what causing this real estate crash

Answer 11

you are in the worst shape in the worst conditions to borrow money --- suggest you take to the owner and see if you can work out some kind of owner financing or rent/purchase agreement -- sorry for the bad news -- good luck