Home loan agency for bad credit?

Question

My boyfriend and I want to buy this one house, but we don't have perfect credit. What is an agency that can help us?

Answer 1

Hello Michelle,

Don't worry too much about your credit. In fact, the average home buyer doesn't have "perfect credit".

It really depends on what do you mean by not perfect? Depending on your actual credit score is, there could be several to no options available to you and your boyfriend.

For example, if your credit score is below 650, there are some options available to you but not many and not without having to pay high interest rates. I recommend you and your boyfriend obtain copies of your credit report to see what you need to pay into current status. It will take time to build your credit and scores up, but it will be worth it as well as it will place you in a much better position to get a home loan mortgage with low interest rates.

I have included a link to a pdf document that has loads of helpful information regarding how to repair your credit and how to improve your credit score.

I hope this answers your question.

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

It probably isn't impossible, but the question to ask yourself is if it is wise to purchase a home at this time. Marriage is very difficult, and starting off with a mortgage may add undue stress. My suggestions would be to pull a copy of both your credit reports, and determine what you need to work on. Pay off the smallest balances first, and work your way up to the highest. If there are any collection items, pay those first. Collections can kill a home loan pretty quickly, and with the bad credit (sub prime) market tightening up lately, the better shape you are in the better. Dispute any incorrect items with the bureau, providing any proof to back up your claims. If there are any items older than 7 years and are negative, ask that those be removed. Viewing your credit report before you apply for a loan, will ensure there are not any surprises or dissappointments in the process. Work on saving a downpayment. If you go FHA you will need between 0 and 3% down, in addition to $3-5K in closing costs, dependng on what you get the seller to pay for (normally the title policy and the survey). If you go conventional, expect to put between 0-10% down ALL depending on your credit score. It is possible to get a 100% financing if you have above a 620, but be aware the lending market is changing rapidly lately, and the minimum credit score may be raised by the time you apply. Another suggestion I would have is for you to rent the cheapest apartment you can find, and put the rest of the money in savings towards a down payment for a house in about 2 years. (We require a 2 year rental history for our applicants, as well as, a 2 year work history.) Or rent a small house. Keep in mind that no one but you will be paying your rent/mortgage, so keeping up with the Jones is not important. Also, think of how much house you can afford. Be realistic. You would hate to stretch yourself so thin, and be able to afford the mortgage, but it would be so high, you couldn't afford drapes for your new home.

Answer 4

Home loans are now available to many people for whom they would have been out of the question just a few years ago. You’d be in much better shape to bargain for better interest rates if you had a more impressive credit history, but if the house you want is the deal youinterest rates, get bigger returns on the money loaned, and the borrowers get a homes in which to build equity, and chances to restore their credit records so that the first bad credit home loans they take will also be the last!

Answer 5

I'm not sure what you mean by "don't have perfect credit" so I'll use my situation as an example. My husband had numerous collections and write offs on his credit report (from some time ago) but his credit score was 615 (not that "perfect"). We still qualified for 100% financing through our bank. They have many programs to assist buyers in similar situations such as rural development, first time homebuyer programs, etc.

Good luck

Answer 6

Right now having bad credit makes it very hard to get a home loan thanks to the fall of the subprime mortgage market. There are programs in many states that will help first time home buyers or people who make under a certain income level. I would go to your bank and talk to a mortgage person there who can help you explore your options.

Answer 7

It's a bad idea to buy a home with someone you are not legally married to. What happens if things go bad? There are laws to help married people divide property. Not so single people.

If your relationship goes south, could either one of you afford to foot the whole bill for the house?

Answer 8

Try a local lender that handles FHA insured mortgages. I say local lenders because the internet ones quote one rate and bam! They raise it just as you are about to sign the paperwork! At least with local lenders you have an office to walk into if there is an issue.

Answer 9

Realistically you will not get a loan in todays markets with bad credit.

Answer 10

Check this link: http://www.badcreditresources.com/bad-credit-mortgage-loans.html
It might help you.

Good luck!