Mortgage home loan answers
Learn about mortgage home loans and rates.
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Can we get a home mortgage loan with poor credit?
Posted on February 10th, 2010 5 comments
T. asked:
My soon to be husband and I are renting a home in our area and paying $1100.00 a month in rent. (This is quite a bit for the area that we live in) We are wanting to buy a home and feel that we have sufficient income (around $90,000) to own a home. The problem is that our credit scores are in the high 500’s. We have been told that we could qualify for a home loan but may have a higher interest rate. We have little debt between the two of us and have a down payment set aside from a family member. Just wondering if anyone has obtained a mortage loan with simular circumstances?
EDMUNDCredit Circumstances, Credit Scores, Family Member, Home Loan, Home Mortgage Loan, Interest Rate, Mortage Loan, Poor Credit, Rent, Renting A Home5 responses to “Can we get a home mortgage loan with poor credit?”
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It is called subprime lending and yes it can be done. Your interest rate will be higher and closing cost will higher. Watch out for prepayment penalties or restrictions on refinancing. Supprime lending is risky at best.
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James C February 12th, 2010 at 06:07
Don’t do it yet,
First try to get your scores up (get a family or friend to ad you to their credit card with very good and long history)
Try to place 20% down its so much easier to get approved and your payments a lot less,
Go with a bank or credit union and not a mortgage broker (even if they are your friends or family)
Don’t start applying until you are for sure that you are ready.
Last go to: Clark Howard . com search for mortgages
site is very useful on everything financial. -
wyld_scorpio February 14th, 2010 at 04:34
It is absolutely possible to get a mortgage. Our lease on the house we are renting is about to expire and out of curiosity I called to find out if it was even possible to get a loan. My credit score is around 550 and we were able to get a mortgage with only 3% down and a 30-year-fixed with an interest rate of 6.625. Maybe some think that is high but I’m definitely willing to lock that in for nowf until I can get my credit under control. So yes, I think you should definitely start calling or contacting lenders and see what is available in your area. If you have any questions, you can email me. Good Luck!
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Ashley P February 15th, 2010 at 20:08
I dont know if this well help, but just incase you do get high interest rates, I know that some cities have first time buyer programs who will offer grant money towards the downpayment, if you take a money management class. but their are stipulations, like in our city we have to stay in that home we purchase with ther grant money for 5 yrs. and if we dont we would have to pay it back! …and that the city can find special financing for bad credit!!!
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See Saw February 17th, 2010 at 17:21
As there are many lenders, you should search for the best lender available. Some mortgage brokers have their own websites. These sites generally list their recommended lenders and quotes on specific packages.
But if you have bad credit standing, stay away from predatory bad credit mortgage lenders. These lenders take undue advantage of the problematic circumstances of the applicants. The 3 most notorious bad credit mortgage lending scam are: high interest rates, forcing closures and demanding titles.
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aggieguy48 February 12th, 2010 at 05:02