Home loan, BAD credit... What to do?
Is it even possible to get a $300,000-$400,000 home loan if your credit score (either the husband or wife) is in the low 600's? We're in California so the lower cost housing is in BAD areas and the "better" housing in MUCH better areas (LOW crime rates) starts in the 300's... what to do??? After you, KT... :) Oh... and just an added note-it's s-t-e-r-e-o-t-y-p-e... just thought I'd mention that so you can avoid that error in the future. Thank for the insight though. :)
Public Comments
- With low credit scores you will need to come up with probably 20% for a down payment. If you don't have enough for the down payment, then you probably won't qualify for the loan. If that is the case then you need to start working on improving your credit scores. Reduce your debt, pay off credit cards, make payments on time, etc. Even if you do qualify, you might want to wait and improve your credit scores anyway. That way you can get a better interest rate and save money.
- trying to improve your credit takes time and requires you to go into debt. Not the best idea. Look into a lender that does manual underwriting. This is how they use to do loans before the FICO score. You'll need a sizable income and you'll want a down payment of 20%.
- jump off a cliff, your exactly the type of steriotype person i was talking about.
* Some answers may have been provided by Yahoo! Answers.