What should I do if I have bad credit and trying to buy a home?
Jun 30, 2009 in
Personal Finance
Rick
I just got denied a loan for a house. I feel a little deflated so please don’t rub it in with your answers/opinions. Is there any hope of me getting a loan? Where could I go for people with bad credit? I feel like someone just popped my bubble so to speak. *sigh
I just got denied a loan for a house. I feel a little deflated so please don’t rub it in with your answers/opinions. Is there any hope of me getting a loan? Where could I go for people with bad credit? I feel like someone just popped my bubble so to speak. *sigh
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6 comments
abradley57 on July 3, 2009 at 2:00 pm
No bank will loan you money for a house if you have bad credit. You can try Farmers Home Administration which might be able to get you into one of their programs. The US will subsidize your house loan and guarantee it. If that doesn’t work, then you can see if there are any owner financed houses for sale in your area. It’s a bit like lease to own, only through an individual.
Kimberly G on July 5, 2009 at 7:47 pm
right now people with bad credit are black eyes for the housing market so they won’t touch you.
I would recommend repairing your credit, maybe use debt consolidation. Don’t pull your credit and don’t get any new lines of credit. You may also consider bankruptcy.
Start saving up money and try to get 10-15% for a down payment. Get a savings account and get a good amount of money saved in there that way it shows that you’re responsible with your money.
I’m in the same boat and we’re filing bankruptcy this year. We are also saving money when we can in hopes of buying a foreclosed home in our area.
Good luck!
Wounded Duck on July 6, 2009 at 7:47 pm
Bad credit loans are what got us into this mess. Fix your credit, pay your bills on time and try again when you are in better financial shape.Home ownership is not a right, you have to earn it.
Judy on July 7, 2009 at 10:07 pm
If you have someone with good credit who is willing to cosign for you, then you might have a chance.
If you have a very large down payment, maybe a third or more of the house price, you might be able to get a mortgage, but even then interest rates will be high if your credit is bad.
Other than that, you’ll have to wait to buy a house until you get your credit rating back up to something acceptible.
For a few years, lenders made mortgage loans to people who didn’t really qualify – that’s most of what got us into this current financial mess.
Becky D on July 11, 2009 at 3:18 am
Right now with how the economy is, sorry no luck for getting mortgage without good credit. Take some time and repair your credit. payoff any collection you have or public records and judgments, make sure you pay all bills on time, get a secured credit card to help repair. Try Again in 1-2 years.
Good luck
helpdesk on July 11, 2009 at 10:07 pm
There is a big chance that you’ll get a loan. But since your credit score is not that good, expect that the interest rate of your loan is higher compare to the normal loan.
Check this resource for the list of lenders that give loan to people with bad credit score