can i get a home loan if bad/no credit?
i want to purchase a home, but my credit is fair. my husband's is bad!!! do they have to do credit checks on both of us? are there any good lenders who deal with people like us? we would be first time buyers. any advice?????
Public Comments
- no they dont have to check the credit for both of u if the house is going to be i ur name but u have a smaller chance to get a house on ur own if it the first because u need another person with great credit to sign with u
- Possibly. If you have a history of poor or bad credit, you are an AT RISK borrower. If you have cleared up those problems, then you may have a chance. If you still owe money or are currently late, you won't qualify. If you have fixed it, then some lenders may take a risk on you. You can try to get an FHA low downpayment loan. The more cash up front you have the beetter. And you will pay a premium in interest for your loan. The key is solving past credit woes. You can have debt, but you must be current, and have a few months of steady payments. Good credit canget a 6.0 % rate, you would be looking at a 9.0 or above for a mortgage. They will want some sort of downpayment, 20% or more would really help, but it could be as little as 5%. See a local Realtor in your area. It is free. They can help you determine you affordable range and direct you to lenders that have had suiccess getting folks like you a loan in th past. Afterall, they want to sell you a house. Yes, they will run a credit check on both of you if the loan will be in both names. If you need the additional income of the second person to qualify, then it will be required.
- Longevity of employment, pay check stubs for the past 3 months or so, Income tax filings for the past 3 years, your current debt / income ratio are probably going to influence the lending decisions most. You may have to pay a higher interest rate, but, if they will loan you the money, you'll still be a homeowner with all it's benefits and required responsibilities.
* Some answers may have been provided by Yahoo! Answers.