can i buy a house if i dont have good credit?

Question

i would like to buy a house but i dont have money or good credit...but i found a house that is real cheap i would love to try to buy...is it possible and what do i do to try? i do have a job i have been at over 1yr..

Answer 1

It is possible. You need to do this: Pay all your debt off (Cars, Credit Cards, Everything). You then need a strong down payment (20% down, minimum) This is do able because you should have no debt, so all that money can go to the down payment nest egg. You need to find a mortgage broker that MANUALLY UNDERWRITES their mortgages. If a broker only runs your credit, your likely screwed, but a manual underwriter looks at job history, among other things, and can help you. Churchill Mortgage is a good one (Google it.) Lastly, stay away from ADJUSTABLE RATE MORTGAGES. These will ruin your day. Following these tips will help make whatever house you buy a blessing, and not a curse.

Answer 2

I know this is not the answer you want to hear, but if you don't have any money or good credit, the time is not right for you to be buying a house. Wait until you are more secure and can afford to do it. People buying houses without money is the basis of the current "subprime" meltdown that is wrecking the national real estate scene. The notion that you can buy a house with nothing down and no documentation is pure foolishness. It costs a lot of money to buy a house and that is just the start. It costs every day to maintain, insure and keep one.

Another thing, block any Yahoo Answers users that try to solicit business from you representing themselves as "lenders" or "realtors". No self respecting professional would be pedaling their snake oil over the internet.

Answer 3

Do not try to buy a house now. You will lose what credit you may have and lose the house too.

Save your money up for a reasonable down payment, and get your credit score up.

Some lenders out there are still doing creative financing and they will grab onto you for your innocence in how the process works. Your credit would be ruined for good for a very long time.

I just don't want anyone in your situation to be lead on by the people that are crooked out there.

Answer 4

Well first of all you need to talk to lenders not these Yahoo's here. Do me a favor and talk with local lenders, not Internet lenders. You need to ask about their programs and how they might work into your financial picture. If they tell you that you don't qualify now, you will at least have received the informaton from a professional and made a good contact for the future. Now if it's a no, then you need to begin planning to live within your means, paying off debt and saving some money for down payment. Pay your bills on time each month, and within 1 year you should have enough good credit to be considered for a loan to buy your own place. I know this seems like a lot of work, but remember owning your own home is a privilege, not a right.

Best of Luck!

Answer 5

You could check with the credit bureau to find out how many points you have and that does make a difference. Also there are many companies out there that tell you they can help you buy a house even if your credit is not the best. The way the housing market is today I would say you have a pretty good chance. Check with your bank, and mortgage companies that would be a good place to start. Good luck and God Bless. Tone

Answer 6

You can do this by looking for people who are selling their house by themselves with "owner financing". They usually don't look at your credit thing as long as you can put good down payment of up to 10%. Since you have a job, as long as you can get some recommendation from your employer they will try to help you. Be willing to pay high interest rate as a incentive for them to sell their house to you.

I am telling you this because I have done it. The toughest part is the down payment. Being single, I checked out of my rental house and lived in my car for more than 3 months to save money for down payment, while at the same time going to work every day. Even then I had to work out a deal to pay the down payment in two installments before we could close the contract. That's not such a pleasant way to do it. But you may be able to live with a friend who is willing to help you and save the money. But you can do it if you put your mind to it and persist with patience.

Some times even real estate people advertise their property acquired through foreclosure and they are also candidates for you. You may have to keep checking the ads every day or week for a few months and call them and check them out before you get a good idea of what's available out there and what kind of reaction you get for your limited monies. Don't tell them about your credit thing unless they ask you. But do tell them about your employer and recommendation from them. Good Luck.

Answer 7

Sub prime loans are all but gone, the selling market is at an all time low, offer him/her a rent w/ option to purchase. Document pmt.s with checks, or money orders for 2 years, and clean up your credit. Purchase home 203-B ,F.H.A. loan House pmt 31%, of gross mo. income, H.P.+ debt 43% GMI, and you will qualify, Good Luck!

Answer 8

If the price is so low that you can pay the entire price (in other words, put 100% down, and have no mortgage), yes.

Credit is mainly an issue for getting the mortgage, not for convincing the seller to sell to you.

Answer 9

If you don't have money what are you going to use for a down payment? If you don't have money how are you going to replace the $200 water heater should the one you have fail?

How are you going to replace the $6000 roof if it needs new shingles?

Answer 10

Yes. Sometimes. Interview lots of lenders. Also interview mortgage brokers. Ask them for recommendations.