Home Buying in San Diego>Question Details

Jayma, Home Buyer in San Diego, CA

i want to buy this house that is 60 thousand dollars. i only have forty thousand dollars cash. i have bad credit, is there a way i can get financed

Asked by Jayma, San Diego, CA Tue Jan 4, 2011

can i get finance for 2o thousand dollars with bad credit, if i buy a 60thousand dollar house and give them 40 thousand cash down??? and if so aproximately what would my monthly payments be and for how long?

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I agree with Rob too, and Alisha. FHA loans are more forgiving credit-wise; they mainly look at your payment history. Have you paid everything on time for the past 12 months? Do you have a variety of credit? I have some really good credit information I can send you. You'll understand what makes up FICO scores, ways to improve credit and how to dispute mistakes.

Also, pull your own credit report for free, and use your own information as a reference. Prices won't be skyrocketing anytime soon, there'll always be competition for first time buyers, so improve your credit and you'll get a better rate, which will help you qualify for more.

You're already on you way with such a good down payment! Very few of my FHA buyers have that much. You'll be in a very strong position when you begin to submit offers.

Good luck to you!

1 vote Thank Flag Link Tue Jan 4, 2011
I agree with Rob as well, this is not the strongest market to put 40,000 into. Save and grow that money. Fha will take the lowest score at 640 so you should work on your credit it will be extremely beneficial to you in the long run and you may find something even more perfect ! Good luck ! - Alisha Sears
1 vote Thank Flag Link Tue Jan 4, 2011
Hi Jayma,
I agree with Rob. I think you should keep your money in the bank and work on repairing your credit.
Best wishes,
Christa Borellini
Web Reference: http://diegocentric.com
1 vote Thank Flag Link Tue Jan 4, 2011

I would put that $40K in a safe place and work on getting your credit restored. Any financing on a loan of this nature is going to be hard to obtain and expensive. Most hard money lenders will not lend on a property that is intended as a primary home.

If you need a referral for credit repair, let me know. I also hate seeing anyone take all the cash they have and tie it up in a single, illiquid asset.

Good luck and let me know if I can help.

Rob Spinosa
1 vote Thank Flag Link Tue Jan 4, 2011
Get an agent to present the offer and see what happens
0 votes Thank Flag Link Mon Jan 10, 2011
Email me . . . I might be able to find you affordable financing. This is no guarantee but it is possible and the rates/terms are not ridiculous nor a scam. You will need to show proof of income and other assets aside from the 40K.
0 votes Thank Flag Link Wed Jan 5, 2011
You would be able to get a private money/hard money loan that will probably run you between 10 & 12% and the loan fees would be very high. Guild Mortgage will do FHA purchases with a credit score of 600 and if the credit is bad for medical reasons, you shouldn't have to do anything with them. If you have derogatory contractural obligations, then that could be a problem.
0 votes Thank Flag Link Wed Jan 5, 2011
Email me and I'll send you a free copy of my book "secrets to achieving great credit" I'm an advisor and also on 1170am here in San Diego.

I study credit reports full time and helping people such as yourself recover is my niche. Beware of "credit repair" company's. Getting something deleted doesn't mean your score will go up.

Good luck!

0 votes Thank Flag Link Tue Jan 4, 2011
That's a tough one Jayma.
Because of the bad credit no institutional lender will finace you.
It looks like you might only be able to go with a hard money lender but I'm not sure if they'll lend such a small amount. An alternative would be seeing if the seller is willing to carry the balance, meaning you would make payments directly to him at a set interest rate you both have agreed on.

Well, let me know if I can help you out in any other way.

Daniel Di Matteo
CENTURY 21 Award
0 votes Thank Flag Link Tue Jan 4, 2011
If your credit won't get you a loan from a bank, you might try hard money lenders. They charge high interest and fees but probably can get you the money. The hard money lenders will take the home away if you don't keep up on payments and they also usually have a balloon payment that means the entire loan will be due in 3 to 5 years. Maybe over that period of time you can get your credit back and refinance out of the hard money loan.
You also might see if the seller will carry a note back on the property. It is hard to find banks that do small loans.
0 votes Thank Flag Link Tue Jan 4, 2011
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