Buying a house with a bad credit rating, is it possible?!?

My partner and I have very bad credit ratings and would like to buy a house and clear our debt, but is it possible? Or do we have to clear our debt to begin with? Will we be able to get a mortgage?

9 Answers

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  • Anonymous
    1 decade ago
    Best answer

    Don't lose hope if you're looking to buy a home. There are so many different ways to fund a home now, just about anyone with any kind of credit can get into a home, regardless of credit situation.

    Of course, some will cost you more money in the long run, but a home it's still one of the best investments that you can make, so, in many cases, it's worth it, especially for the first year of ownership.

    You should shop around, and ask different lenders what kind of programs they have, and if they can help. Try to find a lender that specializes in bad credit mortgages. You can find some bad credit mortgage lenders listed on this page on and off:

    http://www.axalda.info/bad-credit-mortgage.html

  • Shari
    Lv 5
    1 decade ago

    Probably not. If you even want to try....I KNOW you have to first pay everything that would be outstanding on your credit report. They will look at that and ask that. If it's very bad, that would almost be impossible. Next, they would want like 20 percent down. That's the next thing that is almost impossible. My husband and I were in the same shape. And we found someone to give us a loan. Well, they were a shady outfit. Make sure it is well know people you work with too! To make a long story short, we've lost the house 2 years later. I'm not sad anymore though. Being a homeowner was nerve wracking! Taxes are tough! Adjustable rate did us in. Furnace went out in February! Never did have enough to fix it! Had to use electric heaters. Washer pipe going out, didn't work. Never had the extra to fix that either. This is just the start. Don't forget, when something goes bad, it's your baby to fix! And everything started happening all at once for us. It sucked. Oh, and by the way, that shady outfit, is no longer in business. PLUS.....I saw the guy that got us the loan in the newspaper.....in the most wanted felons sections with his picture! So, just be careful! It's not all it's cracked up to be.

  • Anonymous
    1 decade ago

    Buying a house with bad credit seems to be possible these days.Have seen lots of people asking info on bad credits. Well, if you need to get your problem solved on<!--bad credit, you must know to how to confront it. Of course, Even if you have bad credit, you can get loans. Many factors can contribute to someone getting a "bad credit" rating, among these are non-payment of an account or late payments over an extended length of time. Take a look on

    http://badcredits.awardspace.com/homeloans.htm

    You may find want you want. You can easily be labelled as a bad credit risk by financial companies. This can make it more difficult to-->arrange loans or other finance, and usually means you will pay more interest on any loan you take out.

  • 1 decade ago

    It depends how bad your credit is. Your score is important, as well as your income situation. Debt is not a terrible thing if it is manageable. Monthly minimum payments compared to your income is ultra important. Depending on your specific situation, there are programs to actually help people with bad credit buy homes. You may need a sub-prime loan if your mid score is below 620, which is NOT a terrible thing IF you understand them. You may need at least a 5% down payment AND you will need what lenders call "reserves"

    These are liquid assets. Money that you could get to IF you had to, including any bank accounts, IRA, 401K, etc. You need to have statements in your names, and have the money for at least 60 days before you close the loan. Underwriting guidelines are specific. Most banks will NOT work with you. You need to find an honest, ethical, moral Loan consultant or mortgage broker, WHICH ISN'T EASY. It is possible, it just depends on your score, income & assets.

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  • 3 years ago

    no longer in at present's credit industry... paintings on repairing your credit. Stash the version between a private loan value & a lease value right into a mark downs account to construct up money for a down value. it would take some persistence, yet in 3-5 years you will have the skill to purchase a house.

  • GRUMPY
    Lv 7
    1 decade ago

    Yes, it is VERY POSSIBLE. But if and or when it happens you can expect that you're going to pay some very high interest on the mortage. The reason for the high interest is because the banks, or mortage companies can do this. BUT they will justify it with you a risk. This is most likely going to be a mortage company that gives ya the loan, NOT the bank.

  • 1 decade ago

    Best bet is get a good down payment and talk to a mortgaging company ie a banker not a bank.

  • 1 decade ago

    everything is possible. how bad is your credit. maybe you should apply for a loan and see if you can do it. i imagine they will go over your credit report with you and show you the problems and then you can clean them up and try later.

  • 1 decade ago

    Yeah, just pay cash.

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