Can someone get a mortgage with bad credit?

Can you get a loan with a 500-520 score and no money down? In Chicago il, im makin like 40k a year 8-10,000 in bad debt on my credit report.

By | 2013-08-26T13:19:16+00:00 August 26th, 2013|Mortgages Home Loans Interest Rate|10 Comments

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10 Comments

  1. Gary H August 26, 2013 at 5:58 PM - Reply

    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

  2. sideline2084 August 26, 2013 at 5:39 PM - Reply

    Check out http://www.mortgagefigure.com there is lots of information about refinancing, consolidation, bad credit mortgages and more.

  3. michelleit August 26, 2013 at 5:31 PM - Reply

    Sure you can; you can get an 80/20 (2 loans). The only thing is that the rates will be high.
    With rates so low now, you can refinance later to put the two of them together, once your credit gets better.

  4. alexrmyers August 26, 2013 at 5:13 PM - Reply

    Depending on what is bringing your credit score down there are loans available that are not credit score driven that go to 100%. If you have collection accounts and things like that then those are going to have to be paid off before the process can start. If its just the debt thats bringing your score down then you should be ok.

    Are you a first time home buyer? What is the sale price of the home? Can you document all of your income for the past 2 years? These are all questions that need to be answered in order to have a definite answer.

  5. SGT G August 26, 2013 at 5:05 PM - Reply

    Well, you can get a loan, although it will be difficult to say the least. any loan you may get will undoubtedly have a very high interest rate. You may have to have a co-signer to the loan if you are unsuccessful in getting a mortgage by yourself.

    Your best bet is to start repaying the loans to get your credit score back up, or you can have most older debts (7years or older) removed from your credit report with no penalty. these steps will help you to raise your credit score and make it easier to obtain a loan at a lower interest rate.

    Also beware of loans that you may get with your current credit score, aside from high interest rates, you may only get offers for variable rate loans, which are in this market a very risky move. If you do decide to get a loan, making on time payments for at least a year straight will raise your score and allow you to refinance your loan at a lower rate and save you money in the process. hope this helps you out some.

  6. playmaker August 26, 2013 at 4:34 PM - Reply

    you can get a loan from a bank but the interest rate will be very high…i advice you don’t do that because if you fall behind on your payments your credit will be even worse…

  7. ARMY WIFE August 26, 2013 at 3:49 PM - Reply

    Unfortunatly not with no money down. Be careful trying. My husband and I used to have bad credit a couple of years ago and were trying to buy a house. We ended up being taken advantage of by an apparent loan shark. We had totally belived him and so did the sellers. On the day we were supposed to pick up the keys the loan fell through. We had been promised that we were approved for a 146 thousand dollar loan. We ended up being without a home. We had already put in our notice where we were living and they had already rented out our apartment. So be carefull or even better, wait untill your credit is better so you can get a good loan. It’s worth the wait.

  8. DankRuse August 26, 2013 at 3:01 PM - Reply

    You miss the sub-prime boat my friend. Most lenders are now cutting back on giving mortgages to anyone with bad credit. It sounds like you may want to consolidate your debt to pay it down more (which will also raise your credit score) before you think about buying a house.

  9. Hatlady August 26, 2013 at 2:30 PM - Reply

    Those days are over my friend.

    You need to work on your credit score and pay off you bad debts. Most lenders want to see a middle FICO score of 645 or better. You also need to save some cash for a downpayment, earnest money, inspection, appraisal, etc.

    While there are still some sub-prime mortgages and FHA programs out there, they are becoming very expensive.

    You might want to look for a “Contract for Deed” (where the seller provides the financing for 2 years and then you get a mortgage to make the balloon payment at the end of 2 years).

    In the meantime, get your finances under control.

  10. Amanda H August 26, 2013 at 1:30 PM - Reply

    Unlikely. A couple years ago it would have been possible– with a bad rate– but you really need to get those scores up and get rid of that bad debt before moving forward.

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