If you like my answer, select best answer and give me a thumbs up, thanks! Of course call me if you would like me to put you in contact with a lender that can pre-qualify you over the phone.
Best of luck!
want to be the first to find out what a house is worth. let me kow your cell number and I can help you start the process. text BW to 59559- then they'll ask you for the street name. Soon you'll have pictures and other information of the house A Baird & warner agnet will call you back with additional information. THE GREAT THIS IS IT WORKS ON OTHER AGENT'S OFFICE TOO+JUST USE THE SAME PROCEEDURE AND YOU GET THE INFO competitive listings
Bad credit can be corrected and there are some programs for under 600 credit scores, but you need to have at least 3.5% down for an FHA loan and correct - the house needs to pass FHA standards. You need to also find a lender who will do smaller loans. Talk to a lender. If your credit score is under 580, you will likely need more downpayment (which can be borrowed). Wells Fargo has a new program for this. You could also talk to Northern Trust - they often do smaller loans.
Don't forget though, you may need to bring the house up to code, more and more villages are requiring this, which means you need to have money to fix up, if needed, and closing costs (sometimes can go into your mortgage).
I would call some mortgage lenders and get your credit score done and see what they require and then work toward that. If not, go to a credit solution person. A credible one is realestatecso.com.
Your question is one that comes up quite a bit, when a first time buyer is looking to make their 1st purchase. Credit is the 1st determinant that most lenders will look at regarding your financial capacity to purchase and pay for your new home. Most lenders are currently requiring a 640 credit score in order to purchase using FHA programs with 3.5% down payment. The lower your credit score, with other compensating factors, such as a stable job history and adequate reserves allows for a lender to take into consideration other factors, however, more often than not, if your credit score is lower than 640 you will need more than 3.5% down payment. Chicago Bancorp has rolled out a new Credit Doctor Program, to help potential buyers, get from where they are to being a fully qualified candidate for purchase. If you would like more information on this program, please don't hesitate to give me a call. I hope this helps!
I would talk with a loan officer. They will be able to tell you if you can be approved for a loan. They can also instruct you on how to improve your credit rating so you can be approved. The other answers are also correct, in that the lender will also look at other items to approve you for a loan. When you work with an FHA or VA loan, they are backed by the government and will look at the condition of the house.
Let me know if you would like a reccommendation for a great lender that can help you in the process. I would be happy to send it to you.
There are a few other things to caution you regarding. For FHA loans, the home needs to be in pretty good condition--and since the seller is selling as-is they may not be willing to make repairs needed to bring the home to FHA standards. Even if the home does pass FHA standards, you will want to be very cautious about proceeding--a home like this will often require repairs and improvements to bring it to a standard you are comfortable with--if your $3000 was about all you have in reserve--are you putting yourself at risk finanically if repairs are needed after your purchase.
Poor is a very relative term. If you don't know or don't want to post your score on the forum - please email or call me directly for a free loan preapproval. I am answering this in my capacity of a licensed loan originator.
ph. 847 630 6843