YOU SAY " I am sorry that most of the answers on here are RUDE to no end. Yes there are options out there for someone in your situation but in all honesty, I dont think they are what you REALLY are looking for. The best option is to obtain your report and focus on clearing up some of the outstanding debt you may have. Many companies may be willing to settle the debt for pennies on the dollar. Also, you may also need to save for a down payment/closing costs."
Beenthere75 what do you really think of your answer. Rude or not? Per your definition of rude. I think you should apologize to the forum.
Chicago Bancorp has a program that helps individual get on track with their credit to prepare for homeownership. Please give me a call if you would like further information. I'd be happy to help you get from where you are now to a place where you can purchase.
Sanjeev Ahuja, NMLS #148731
Home Funding LLC
110 Jericho Turnpike Ste 214
Floral Park, NY 11001
Direct Phone 917-517-2552
NYS Registered Mortgage Broker, Dept of Financial Services, Loans arranged through third parties (NMLS # 885573)
I am sorry that most of the answers on here are RUDE to no end. Yes there are options out there for someone in your situation but in all honesty, I dont think they are what you REALLY are looking for. The best option is to obtain your report and focus on clearing up some of the outstanding debt you may have. Many companies may be willing to settle the debt for pennies on the dollar. Also, you may also need to save for a down payment/closing costs. I assume if you are like many americans right now, you may be living paycheck to paycheck. If this is the case, you may want to evaluate your spending and make cuts in order so save. Give yourself a year (it's shorter than you think) and check your score again. I speak from experience....life happens and bad things sometimes come with it. Work at it and improve your situation so when you get in the home you will be happy and financially better off.
I hope this helps.
As you have seen from other responses you need to make sure you have your credit is cleaned up before looking at purchasing a home. Get a copy of your credit report and look for derogratory items (collections, judgements, late payments...). Also, did you file bankruptcy recently? If so, it won't matter what your credit score is. You could have a waiting period of at least 2 years before you can purchase a home.
If you have other questions, please let me know. Good luck to you.
The answer to your question is 'yes', you can still obtain a loan with bad credit if you can demonstrate that you can repay, but not from traditional lenders... from hard money lenders. However, hard money/private lenders tend to lend for investment purchases only, or interest only loans for short periods.
Another way to purchase a home for 'owner occupancy', is to target homes that are advertised as 'lender financing' but you may need a downpayment of at least 20% in some cases.
Think carefully about your circumstance... if you were a lender, would you want to lend to someone in your situation? Why? If you can convince yourself that you can, then you can convince others of the same for the same reasons.
It depends on what your interpretation of "really bad credit" is. If it's as bad as you say it is, why would anyone lend you a dime? Prove you can pay your bills ON-TIME for 1 year, then you may have a chance. I don't mean to be rude, I'm just being honest. Good luck.
Look into why your credit is "really bad", and find a way to get those scores up.
The last thing you need is the pressure and responsibility that comes with owning a home.
Would you lend me money if I borrowed from you and never paid you back? That's your answer.
That being said, contact a few lenders and have them run your credit. Verify what needs fixing on your credit, ask the lender for guidance on how to fix it then work towards that goal. Once you've done this you will be headed in the right direction.
Game plan, goal setting and with end objectives.
P.S. If you need some lender referrals feel free to contact me directly for a list.
Hope that your having a good day. There are othere options out there and available too. Some are not the conventional route, like either rent to own or lease option. As some others on here have suggested if you want to go through with a conventional loan, you need to seek out a bank that is doing lending and find out what the criteria is for you to qualify for a loan. If you would like to do something non-conventional please feel free to contact me and we can see where you are at and assist you into a place that will allow you to successfully accomplish your dreams.