Home Buying in Grove>Question Details

Ryanmilam, Other/Just Looking in Grove, OK

can u get a house with no money down?

Asked by Ryanmilam, Grove, OK Fri Apr 1, 2011

with not the greatest of credit could you finance a house with no money down and a cosigner with good credit

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Like Andi said, the only loans that allow 0% down would be VA (you have to be a veteran of course for this type of loan) and USDA Rural Housing loans, which are only available in certain areas. In regards to your credit, most lenders won't take below a 640 credit score (the score lenders are required to use is your middle score, so order your scores least to greatest and take the middle score and thats the one we use. If you have multiple people on the loan, it is the lowest middle score). There are a few companies that will take lower scores, but I havent seen any local ones (that doesn't mean they arent out there) and I would also research them because they tend to be more shady. In reference to a co-signer, on most loans all borrowers have to qualify credit wise, so even if you have a cosigner with good credit, your credit still has to be good enough to qualify so it almost defeats the purpose.
A lot of people dont like to hear this, but to be honest I would recommend continuing to rent for another 6 months or a year, save up 3.5% for a down payment (to go FHA), and pay everything on time to raise your credit scores. If you dont already have a credit card you can use and pay off in full every month, then I would recommend getting a cosigner to help you get a credit card, OR get someone to just add you to their credit card but just dont give you an actual card, so they dont do anything differently but them paying it off helps your credit score. Another good way to raise your credit is to take out small loans from a bank payable back over a year. What I did was take out 3 $1000 loans, I put all that money in a separate bank account that gains a little interest, and then just had the bank auto draft the payments out of those accounts. It ends up costing you a few hundred bucks in interest, but really helps your scores. Then once you have enough money and better scores, give me a call and we'll get you preapproved for a great home!
Web Reference: http://www.drewbrenner.com
0 votes Thank Flag Link Thu Apr 7, 2011
Depends on what you call not so good credit.
VA and rural development loans are the only 100% loans still available.

Hope this helps.
0 votes Thank Flag Link Fri Apr 1, 2011
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