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I have never owned a home , but I am wanting to because I am tired of renting , but both my husband and I have horrible credit ( back pay child support, repossion , credit cards etc. Its bad.
I just recently paid of my student loan though. Anyways everyone always tells me you can get into a home easier being a first time home buyer , they will even cover your down payment , and credit isnt an issue. I have never tried to get approved because I feel like I will just get my hopes up. I am not looking for anything expensive I want to stay under 110K , can I purchase a home? I have had the same job for years I make good money and same with husband. Can we buy a home? No downpayment? any advice would be nice. I am looking to buy a home in the next 3 months if I could. Should I try or would it be worthless?
I know my parents had horrible credit bankruptcy and all and never put money down on a home ( i dont have a bankruptcy)
Advice needed

5 Responses to “Buying a home with bad credit?”

1. SmartA$$ on June 25th, 2009 2:17 pm

   Your credit history is important now. A few years ago, getting a loan with bad credit was easier. Now, your interest rate is directly proportional to your credit score. Plus, any outstanding debts will be held against you in determining how much payment you can afford.

   It never hurts to talk to a loan officer about getting pre-approval, but don’t get your hopes up.

2. golferwhoworks on June 27th, 2009 1:39 pm

   with bad credit you must pay cash sorry but lenders look at every thing and one is willingness to repay and you have not demonstrated that you are will to do so have you. Clean up your past so you can move forward. You need middle scores of not less than 620 now and only 2 loans with no down payment. VA and USDA Rural Development. All other loans require down payments but there are grants out there to help you as well for down payments

3. Steve D on June 30th, 2009 6:32 pm

   If you can get approved (and if you bad credit is recent, you probably can’t), expect to put down 3.5% (that’s if you can get an FHA loan – figure at least 10 to 20% if you go conventional). Also, expect to have closing costs equal to 3 – 5% of the price of the house, although you may be able to get the seller to pay for some of them.

   Assuming you can get the credit, expect that you will need $7 to10 thousand for down payment and closing costs.

   No deposit loans, unless you are or were military, are basically a thing of the past. The recent mortgage crisis has caused banks and lenders to become more strict about who they lend to and how much they lend.

   It may be that your state has a first-time home buyers’ program – check with the state housing department or governor’s office to see if there is anything available – this might help reduce the amount of money you need. Finally, if you do qualify and buy a house before December 1, you may qualify for the $8,000 tax credit being given by the Federal government (you will get it back next year). Though it may not help you now, at least you will get some money back.

4. Pengy on July 2nd, 2009 10:05 pm

   Not going to happen without money. Even FHA now requires a score of 620 and 3.5% down. Although the seller can pay for some closing you will still need to pay for insurance for a year, appraisal fee, inspection pest inspection etc. Another consideration to be taken is your debt to income ratio,

5. fred on July 3rd, 2009 4:57 am

   creditreport.fateback.com – try this service to boost you credit score before getting loan. After credit repair you can get the loan with minimal interest rate.

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