Is it possible to buy a house with no money down and bad credit?
Posted by: admin / Category: no money downIs it possible to buy a house with no money down and bad credit?
I’d rather be paying a morgage then rent. And we can afford the monthly payments, but we have no money saved for a down payment and my husband and I have bad credit. Not possible right?
Not anymore – You would have been the perfect "sub-prime" loan candidate back 2 years ago. The mortgage industry has finally wised up. (I have done mortgages for 22 years). This is what you need to do:
Pay your rent each month, on time, by check. (We look at rental history for 2 years). Don’t pay in cash- you need proof that you paid, anyone can write a receipt. You need a good job history for 2 years prior to qualifying. Credit must be clean for 2 years. Don’t worry about medical collections (we don’t care). Pay off old bad debt – start with the newest of it- the older the debt, the less it hurts your credit. Don’t let anything go to collections! Put some money in savings- you will need 3% down for FHA- more for conventional. FHA is really good for first time homebuyers. In 2 years you should be fine. You will be glad then that you didn’t get stuck with an adjustable high rate loan. Good luck!
July 14th, 2010 at 8:54 pm
Not in today’s credit market…
Work on repairing your credit. Stash the difference between a mortgage payment & a rent payment into a savings account to build up funds for a down payment. It might take some patience, but in 3-5 years you’ll be able to buy a house.
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July 14th, 2010 at 9:20 pm
Is it possible for pigs to fly?
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July 14th, 2010 at 9:58 pm
Find a seller that will allow you to take over payments.
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July 14th, 2010 at 10:39 pm
Not anymore – You would have been the perfect "sub-prime" loan candidate back 2 years ago. The mortgage industry has finally wised up. (I have done mortgages for 22 years). This is what you need to do:
Pay your rent each month, on time, by check. (We look at rental history for 2 years). Don’t pay in cash- you need proof that you paid, anyone can write a receipt. You need a good job history for 2 years prior to qualifying. Credit must be clean for 2 years. Don’t worry about medical collections (we don’t care). Pay off old bad debt – start with the newest of it- the older the debt, the less it hurts your credit. Don’t let anything go to collections! Put some money in savings- you will need 3% down for FHA- more for conventional. FHA is really good for first time homebuyers. In 2 years you should be fine. You will be glad then that you didn’t get stuck with an adjustable high rate loan. Good luck!
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July 14th, 2010 at 11:13 pm
Nope…that ship has come and gone.
Take your time…build up a hefty down payment and work on your credit.
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July 14th, 2010 at 11:40 pm
I highly doubt you would be able to at this point. Those days of sub prime loans are behind us.
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July 14th, 2010 at 11:56 pm
No, not really. It is a difficult market out there now.
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July 15th, 2010 at 12:15 am
Right.
Your problem is the bad credit. Fix it and then start looking.
As of October 1, the days of no money down are gone. As of October 1, the min you will need is 3.5% of the sales price.
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July 15th, 2010 at 12:43 am
Anything is possible. It’s just not going to be conventional. You may need to find a motivated seller that is willing to sell with owner financing – maybe they’re having a hard time selling, but would finance the sale to you.
Or, maybe there is a seller that will let you take over their mortgage payments (sell the property to you "subject to" the existing mortgage) and owner finance some portion of the sale, maybe as a balloon payment down the road, or payments that kick in later.
My point is that ANYTHING is possible, despite what people will tell you. But, it is going to be much harder to find and will require a flexible (and MOTIVATED) seller and an understanding of how to structure creative deals….
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July 15th, 2010 at 12:48 am
First thing is first. Fix your credit yourself. FASTCREDITFIX4YOU.NET. Then look for a person that will do a lease option with you. Make payments to them on time and they can (if done properly) help you use that payment to help your credit score. Do not pay someone to fix your credit that costs too much. You can buy homes with no money down and no credit check. But with the housing market the way it is right now those opportunities are not always easy to find. Having a down payment is going to put you in a much better position with bad credit. This is not easy but it can be done if you stick with it and keep calling people who have homes for sale and more importantly have homes that are renting. LAndlords are often ready to sell on terms and be a little more creative. Good Luck
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July 22nd, 2010 at 5:17 pm
hahaha you are correct I agree with you on most of your points.There are a couple, however, that I didnt agree on though.