Is it possible to get a home loan with bad credit?
We would like to purchase a home listed around $125K and can put 20% down. Current salary is $192K. We have $500 p/m in vehicle payments, but no other long term debt. DH is ex military, so he should be eligible for a VA loan. Should I even bother looking into this or do I just need to wait until enough time has passed that our credit no longer looks so bad?
Public Comments
- It depends how bad your credit is. Most mortgage underwriters these days are very nervous about writing any loan to someone with bad credit. Then again, they're also desperate to get some good loans on their books, too, so you might have a shot. I don't know how it works in your state or what company you're looking at, but banks generally take the "average of the median" of your scores. Meaning, there are 3 major credit bureaus, and they will take the middle score of the 3 reports for each of you. Then, they will average those two out. As long as that combined score is higher than 620, you have a very good shot at getting a loan. If it doesn't, then I'd recommend you wait until you clean up your credit a bit. If only one of you has bad credit, you might want to qualify by yourself as long as your income is enough to support the house you want. Since your income is relatively high compared to your debts, figure out what's causing the problem. If you have credit card balances, get those down as soon as possible. It's the fastest, easiest way to raise your credit score. Make sure you have nothing in your report that you can't take care of, either by removing it, or by paying it if it's legitimate. The only other way to get the score up is time. The good news is it's possible to raise a score about 100 points in 6 months as long as nothing is outstanding and you have virtually no credit card debt. Good luck.
- I have worked for a credit union, BOA and Wells Fargo over the past 10 years all in mortgage lending and most recently Loss Mitigation. Unfortunately due to the rise in foreclosures and the government investigations into large financial institutions lending practices, now it is more difficult to get a mortgage with less than perfect credit. The sub-prime mortgage (for debtors with less than perfect credit) industry is almost at a stand still since they hold the majority of the defaulted loans. I would assume that the implementation of federal lending laws within the next year will only make it more difficult for people with less than perfect credit to purchase a home. The good news is if you and your husband qualify for a VA loan, they do work with people with bad credit.
- It depends on how low your rating is. Lower scores don't necessarily mean you can't get a home loan, but you would probably have to go to a sub prime lender and that means a higher interest rate. If you could find a lender, bite the bullet and pay the higher interest rate until such time you have raised your credit rating and then refinance at a better rate. Also, a lot of lenders will bypass more stringent qualifying measures with 25% down.
- There are hundreds if not thousands of websites on the internet enumerating the ways to apply and receive home loan when you are plagued with bad credit issues. These sites help consumers with bad credit scores to increase the viability of their existing credit scores and set up loans regardless of their credit history.Companies that specialize in bad credit home loans; usually offer a wide range of options for consumers with bad credit<!--These options include Bad Credit Home Loans, Home Equity and Line of Credit (HELOC) Loans and different options for Mortgage Refinancing, making it possible for those with bad credit to realize the dream of owning their own home.You can find more information on Home Loans here, http://www.loansandinsurances.com/
- yes its possible for you to get a home loan with bad credit.don't worry its better for you to try for an online loan.some abnks in online lend loans even u have poor credit.i think that the below website will help you to find right solution.
- You should be able to get the loan because you have the 20% to put down, but you will most likely pay a real high interest rate. It could even be in the double digits. If you can wait a few months you may be able to boost your credit score. This will save you thousands in interest alone.
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