credit no credit. how do you get credit to buy a house?

Question

i called every mortgage company in the phone book and every one said 100% financing but can we buy a house , no. how do you find a company that will truly finance the under dog. my hubby works i do not and with three kids you need a house with more than two bedrooms. does any one have any idea how to do it and not have to pay 10% to 15% down?

Answer 1

I'd say apply for a credit card, at least two. Try to get enough credit for little things first like a computer, then a car, and another car then when you have enough credit a house. Or you could try to get an apartment first then think about the house.

Answer 2

Trying to get 100% financing in a falling housing market is pretty hard. Housing lenders have two types of security for the loan: the value of the house, and the fact that you have a stable income that is enough to live on plus make the mortgage payments. In a falling market, the value of the house alone is not security enough, so if the lender is not comfortable with your income, you will have to have a down payment. This makes the lender feel that you are invested in the house and will not just walk away if the house goes what is called "upside down" (where you owe more than the house is worth).

I strongly urge you to disregard advice that says to get some credit cards and start charging on them to establish a credit rating. You will just end up spending money on high interest, and not be able to save towards a down payment, which is still your best bet. If you think you have the self-control to get one credit card, charge some things like gas and groceries to it, but PAY EVERY CENT OFF EVERY MONTH TO AVOID INTEREST, that might show you are able to handle credit. If you can't do that, don't get into credit cards. Save instead.

Remember that mortgage companies are businesses. They honestly have no interest in "the underdog". They want their money back.

You did get some good advice: Try an area where houses are moving slowly, and also look into rent-to-own. You might also be able to find an older house that someone needs to get out of (moving out of town, or kids have moved out and they are moving to a condo), where the owner is willing to take back a second mortgage in addition to a first from a bank or mortgage company. Your best bet is still to save rigorously for a couple of years so you can offer at least a minimal down payment.

Please, please remember that you need to be able to afford the house you yearn for, however much you need it. If you do not have enough savings and income to buy a house, be careful not to fall for the kind of 100% financing/interest-only deal that is causing thousands of people to be thrown out of their homes right now, because they just ignored the fact that in three, or four, or five years, they would suddenly have to come up with lots more money, and they didn't have it.

Answer 3

I believe FHA will finance a home with as little as 3% down. They may advertise 100% financing, but that probably doesn't include closing costs. FHA will usually allow you to include some or all of the closing costs. There are some restrictions. Any mortgage company should be able to help you. You may also want to check to see if you can find a mortgage broker. They will shop your loan for you. Most lenders will require something down unless the house appraises for more than the mortgage amount.

Answer 4

hiya, in the beginning all financial corporation are distinctive and banks use extremely some credit scoring fashions. To make concerns worse the fashions can exchange daily in step with danger e.g. by way of present credit crunch maximum banks would have raised the score requirement SO - the sole answer is to get the suitable score you could and spot a private loan adviser to be certain which lender is accepting the main folk with a honest activity cost - earlier this would have been Northern Rock - now you should wat to evaluate the Abbey? ok the suitable score - each and every container on the app form is correct I imply each and every container. So take time earlier you answer! have you ever offered a cheque assure card? examine each and every card and if not get one - even tho you have got snapped up your credit or save enjoying cards you nonetheless have them and that they'll look on a credit seek so tick the sure container and you gets extra factors. yet another key one is the dimensions in activity/modern-day domicile and fiscal corporation - in basic terms given which you have got a financial corporation which you employ oftentimes that doesnt imply which you have been there the longest - have you ever an account which you opened as a newborn? Use that one for the form and your prevalent a/c to pay off the DD - lower back extra factors. So i'm hoping this proves useful - in case you desire me to rearrange your own loan interior the destiny please in basic terms touch me. i'm a independant own loan adviser - and that i DONT cost A cost!!! good success

Answer 5

They are willing to deal, but they want some good indicators that you can actually pay the mortgage. They want to see a good credit score, documented income, stable job history, and that your mortgage payment is manageable as compared to income.

You don't give much info, but my guess is that your mortgage payment would probably eat up too much of your monthly income.

In the past few years, the mortgage companies have given mortgages to people who had no real business having them. People with too low of income, or undocumented income (liar loans), and they are now getting burned with increasing foreclosures.

2 years ago, you probably could have gotten the loan easily. Today, you'll have to demonstrate that you can make the payments.

Your best bet is to go to a mortgage broker. Be sure to have them look into local or state First Time Home buyer programs. My mortgage broker found a state program for me that gave me a below market fixed interest rate + some down payment asssitance.

Answer 6

Last 5 years , companies did that but then those borrowers still couldn't pay their mortgages and now those companies are bankrupting .

Some people postpone having kids until they have a house .
The 'under dogs' are the people who Don't plan .
People who choose lots of kids first , rarely catch up economically .
Your 1 chance might be to get a job as soon as the youngest is in school , unless you are going for baby #4 .

You chose kids , but now want what the people who planned ahead have . Rarely works that way .

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Answer 7

First you have to establish your own credit rating. It must not be too good if no money down financing is entirely out of the question. Work on that first. No one will give you a couple hundred thousand dollars unless they can expect to get it back.
Pay your bills, save a little, and have a realistic idea of what you can pay. Lenders will issue loans based on what they think you can afford, not necessarily on what you want or need.

Answer 8

I am sorry to tell you this. The stock market crash was because of these companies loaning people without credits or lower credits and they havent paid.

The only way to get credit is get small loans and pay em and get credits. Its a sick system. You have to be under debt to get good credit.

Its better not to get into credit and buy a house and they increase their interest rate.

But if i were you it might sound odd but i would buy a piece of land and build it slowly and save money and keep building it. Its better than getting stuck with these money hungry parasites.

Answer 9

10% 15% is pretty normal for anyone..
if u are from austraia. the goverment grants u the first home buyers package which means u dont need a deposit, and they give u 15 thousand dollars to buy a house that has already been built
i hope this helps i dont know about anywhere else tho
if your not working it will be kind of hard to get a home loan unless your hubby makes a fair bit of $$$$

Answer 10

Yes, buy in an area where there is a glut of houses on the market (like North Port, FL). There are a lot of rent to buy houses and builder financing. If you want to stay where you are, the best thing to do is to save up a down payment.