how likely would it be for me to get a home loan with poor credit and no money down? i live in louisiana and?

Question

i was told ever since Katrina... it's super easy to get a home loan right now. just curious. me and my husband both have poor credit, our credit score was around 560 (each). any info would be great!!!!

Answer 1

You might be able to find a loan, but the terms on it will be horrible. You will stand a pretty good chance of having the house foreclosed on you at some point. Have you been watching the news? There is a lot of sub-prime mortgages having lots of problems. Lots of lenders are revising their sub-prime guidelines and making it harder for people with bad credit to borrow.

One of the things that will get you is called an ARM. It is an adustrable rate mortgage. They will start you out on a low rate but it does not take too long before they raise the rate. This can drastically increase your house payment. Some people have had their payments go beyond what they can pay. There is something of a crisis with foreclosures lately.

I would recommend spending a couple of years getting ready to buy the house. Take that time and work to improve your credit and to save up something of a down payment. You may want a house now but if you lose it because you were not financially ready to get it then what good is it?

Also, beware of some of the shady loan people. There are plenty of people out there who are going to rip you off. They could give you the worst of loans or they could charge you astronomical amounts to apply for their "mortgage" or they could just be plain identity thieves.

I would recommend you also spend some time doing research about mortgages and home buying. A great place to start is to go to the book store and pick up a copy of "Home Buying For Dummies". It is actually a pretty good primer to get you started in your planning and to learn what some of the traps and dangers are in house buying. From there you can find other books and sources to help you along.

Answer 2

Used to be easy, that changed when everyone started defaulting on thier loans. Now you will be lucky if you can get one with a 680 score. And forget no money down. That is pretty much gone too.
But you are in disaster area and thier may be some programs that can help. Without a special program you are kinda out of luck. Save up for a down payment and try to raise your credit score, maybe a year from now you can try again.

Answer 3

Sub-prime loans going into foreclosure in record numbers--that's loans at higher interest rates to home buyers whose credit is poor, making them less than ideal candidates--have recently forced a re-examination of who can get a loan.

I'd suggest that if you have poor credit and no savings, you're probably not ready to take on a mortgage. It's a huge responsibility and failing can cost you everything you own.

Answer 4

You probably should have jumped on that before this summer .
There may have been provisions for Katrina victims ,
And you should ask those lenders , not us .

On the regular market , it mostly takes a FICO over 700 and about 20% down ( or pay really high interest rates that make the whole thing Not affordable)

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Answer 5

All is not lost. If you and hubby have the ability to show income to support the loan there is a good chance you may qualify for an FHA loan.

Find a quality lender who directly funds and underwrites FHA loans. Ask if they are a HUD approved Lender and if their underwriters are Eagle Approved.

Brokers can be very good but not for FHA.

Good Luck!

Answer 6

You missed your chance. The bubble has burst and banks are no longer loaning to everyone under the sun. But on the bright side, you are not one of the millions of people having to foreclose on their houses now.

Answer 7

Not very likely. The economy is taking a blow beneath the belt. Financial institutions are a lot more cautious on who they loan money to.

Answer 8

Honey...easy street is under water and the only thing showing is the stop sign!