home loans and bad credit?
my husband has several accounts in collections that are closed and never paid about 4,000$ can he be able to get a home loan we hear that there are alot of ways to buy with bad credit is that true, is there a chance, i told him we should pay what is owed and i think we'll have a better chance
Public Comments
- Absolutely, pay off your debts.
- hiouh
- I will start with the fact that it is always best to pay off your old debts before incurring new debts. BUT, it is possible to purchase a home without paying off old collections. There are several lenders that specialize in these situations, they are called subprime lenders. Depending on his actual credit score, how many credit tradelines he has and how many are positive, then he may qualify. There are numerous other factors that go into getting approved for a loan, so working with someone who is knowledgable and trustworthy is a must. He may need a larger down payment depending on his situation, but I have helped several clients with credit issues buy a home with no down payment as well. BEWARE of getting into a loan you can not afford though......you might be able to afford for the first couple of years but if it is an adjustable rate loan make sure you can afford it if the rate changes. I have been providing mortgages as a broker for over 6 years. Good luck!
- There are lenders out there that will make home loans with bad credit. Your interest is going to be higher, and they probably will only lend you up to 75% of the value of the house, meaning that you will have to come up with the other 25% as down pmt. You could also go through FHA, this loan is government insured, easier to qualify, have low down payment (3%) and cost less (closing costs). You will have to show 2yrs of employment. I am trained on FHA loans. If you would like to get pre-qualified, contact me, I will be more than happy to help you and guide you to the best options available to you. michelle@riverloans.com As always, try to pay off your old debt.
- No matter how bad your credit history, with a bad credit home mortgage loan, you can easily borrow money to finance your house. This helps you to buy a home, redecorate your home or consolidate your loans. This type of loan reduces your total monthly payment because of lower interest charges and liabilities. As this loan gets tax relief, your tax liability reduces.
* Some answers may have been provided by Yahoo! Answers.