I have bad credit, can I get a First time home buyer loan?

Question

I have bad credit and my landlord/boss wants me to buy the house I'm renting its a duplex with a renter on the opposite side of me? I'm clueless when it comes to stuff like this but would love to learn and be a landlord of my own, would i need money down? could I get the loan for more than what he is asking for the house?

Answer 1

depends on why your credit is bad.
bankruptcy wait time is about 1yr.
foreclosure about 2yrs minimum.

you can have a 350....and still get an FHA mortgage IF YOU HAD NO LATES IN THE LAST 12MONTHS.
FHA requires up to 2.25% down ....other government programs are 0 down, but you will need a 620 to avoid high pmi payments.

You can only get more if you plan on using it to FIX the house...and you will need to provide details to the repairs.....and it has to be approved. FHA rehab 203k

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

If you have bad credit, you may have trouble qualifying for a mortgage in today's economy. The rules for bad credit mortgages have become so strict that it's almost impossible. Therefore, you may want to think about first trying to work on your credit before you purchase your landlord's duplex or any other property. There are options, such as an FHA loan, but they are slim.

If you aren't totally sure what your score is, you may obtain a free credit report at www.freecreditreport.com . Take a look at your report and start calling your creditors to work out a payment plan to pay off your debts.

It’s going to take some time to re-build your credit score, but it will be worth it considering it would definitely give you more mortgage options to choose from.

Ask your family members and friends for advice on who they may have worked with to obtain a loan. Take the time to call one of them and allow them to take you through the options you have that would fit your unique situation. However, as I already stated, the only thing that would place you in the best situation is to pay your debts down.

To answer your question regarding needing money down, it is always considered a plus when you place at least 5 to 20% down on a home you would like to purchase. But most mortgage companies have programs that will let you put less to no down payment on your property. It's just difficult to qualify for these programs with bad credit.

I am including two links to very helpful information regarding repairing your credit and tips on buying a home.

Good luck!

Answer 4

500 -586 is a wide range. A 500 score will probably not get approved for any mortgage unless you can prove a very good income. And even then, they will consider you a awful credit risk and probably charge you upards of 10%. Closer to 586 is poor, but not awful. You most likely could get approved if your income is steady and dont have debt flowing out your ears. I think you should work on whatever is hurting your credit. You will be amazed how fast you can correct your credit score if you do the right things to help. You could be pushing 600 -625 in a year easily, and then you can get a much better mortgage.

Answer 5

Due to the current "credit crisis" in the US, your chances are not that good. People that have bad credit fall into the "subprime" category, and this is the main type of borrower that is defaulting so much that is causing mortgage companies to file bankruptcy or post huge losses.

Sorry but you'd definitely need at least some kind of down payment. If you have 20% to put down then fine, you will get a loan, but pay a higher rate. If you have less than 20%, then you will have to shop harder to find a lender willing to lend to you.

Good credit should be a worthy goal to strive for, but unfortunately many people nowdays don't see it that way.

Answer 6

Its possible if you havn't had any over 30 day payments in the past 12 months. Ussually medical bills arn't as bad.

You could get an FHA home loan which usually requires 3% down. Sometimes you can get the seller to pay for that and the closing costs it depends on if he is willing to work with you.

Answer 7

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 8

Hi,

To answer your question,I have bad credit, can I get a First time home buyer loan? I can recommend
this site which should help you http://www.mortgageloancheck.net/badcredit

As you asked;I have bad credit and my landlord/boss wants me to buy the house I'm renting its a duplex with a
renter on the opposite side of me? I'm clueless when it comes to stuff like this but would love to learn and be a
landlord of my own, would i need money down? could I get the loan for more than what he is asking for the house?

Best of Luck :)

Answer 9

With bad credit you'll pay through the nose for a loan. Clean up your credit score first, THEN consider buying.