How can i get a loan for a house with bad credit?

November 25th, 2008  | Tags: , ,
jay s asked:


I am 27 years old, and I have really bad credit. I havent put much debt on my record in the last 3-5 years, and actually should be improving it as we speak. I want to buy a house in the range of like $120,000-$160,000. I dont have much money to put as downpayment, maybe like $5,000. I do plan on doing like a debt consolitdator to pay off credit card debts and charge offs that i may have from previous “party days”. How should i go about getting a loan for that much? I know that most banks will not even consider. Should i buy if i get a loan or wait until i pay off my debts, so that i can get better mortgage rates. I am not that educated on this, but am trying to understand the loan and equity world. Please any advice would be appreciated, and ill give 5 star answer to the best! Please no stupid answers like I should have not ran up so much debt or not partied so much in my days. I am aware of this and Im seeking advice on how to deal with it. Thank you!

Kevin
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  1. nvrdoesthsprtdie
    November 30th, 2008 at 05:19
    Reply | Quote | #1

    Without good credit and not more than $5,000 you don’t have much of a chance at obtaining this dream right now. I’d say buckle down, spend a few years concentrating on building and strengthening your credit and getting your bills paid off. I know it’s a buyer’s market right now but you do have to have good credit to buy a house. The sellers want to know that you’ll be able to pay it off…with bad credit, you’ve proven to them that you can’t. I think in a few years, with a lot of determination and good judgment, you should be fine!

  2. Lovely Me
    December 1st, 2008 at 17:10
    Reply | Quote | #2

    I suggest that you try and get a co-signer with good credit. Of course you would both have to trust one another.

  3. Doctor Deth
    December 3rd, 2008 at 12:27
    Reply | Quote | #3

    The debt first and clean up your credit history youll need closer to 10 of house price in cash to cover down payment closing costs inspections application fees etc if you have chargeoffs on your credit history youll need closer to 10 of house price in cash to cover down payment.
    The debt first and clean up your credit history youll need closer to cover down payment closing costs.

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