Home Buying in Phoenix>Question Details

Anitad, Home Buyer in Phoenix, AZ

what if i don't have a good credit. Can i still buy a house?

Asked by Anitad, Phoenix, AZ Fri Jan 28, 2011

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0 votes Thank Flag Link Wed Feb 16, 2011
I have a mortgage broker contact who can work miracles. No promises, but if it can be done, she can do it. Give me a call to discuss.


(602) 492-1565
0 votes Thank Flag Link Thu Feb 10, 2011
You really need to get your credit to a minimum for 640 for FHA, however you can go conventional with 20% downt to 620. I would recommend talk to a lender and getting a baseline of where your credit is so you ca ngame plan n how to imporve your credit to buy.
Web Reference: http://www.ApproveMeFHA.com
0 votes Thank Flag Link Fri Feb 4, 2011

This really is a question best answered by you connecting with a mortgage person. It is possible that you may be able to purchase a home or put a plan in place to get you ready.

I would be glad to provide a referral to a quality mortgage person that can help you out.

Doug McVinua

Arizona Homes for Sale by a Guy from Iowa
Web Reference: http://www.McVinua.com
0 votes Thank Flag Link Sun Jan 30, 2011
The answer is yes there is a program that is available that allows someone that is employed, maybe doesn't have good credit but can meet some basic qualification criteria on income and bills owed. With this program you are able to purchase a home (new or resale, Short Sale, foreclosure of even new) including upto a four-plex. Contrary to some of the other responses he is reputable, and the loan is a full 30 year conventional fixed loan below the market loan percentage. Additonally, there is no money down required for purchase. I have five Clients in the program at this time comp;eting their qualification period so they can purchase their home. FYI I get nothing from the program except satisfaction of helping someone purchase their home and stay in it, I recommend you and when youn complete the program I work with you just like a normal client to complete the purchase of your hiome. Please contact me and I can explain the entire program and get you started. Thank you and have a Great Day. Richard Troxell, RE/MAX Excalibur Realty, Phone: 480-346-5320 or via email: rtroxell@remax.net
0 votes Thank Flag Link Sat Jan 29, 2011
You do have to be careful with lease purchases and seller financing. Payments should be made through a service company (title companies sometimes will do this.) That way if you pay your payment to title, they make the payment to the bank and notify the seller it has been paid (or send the seller anything above the mortgage payment if this is the arrangement). The reason for this is that you don't want to make the payments to the seller and find out later he didn't make the payments to the bank and the home gets foreclosed on. Especially if you are able to give the seller a larger down payment.
0 votes Thank Flag Link Sat Jan 29, 2011
And of course, there's always the lovable "Guido the Loan Shark". Be VERY careful with rent-to-own, lease-purchases, lease-options and other "creative financing" schemes. And before you do anything else, consult with a local, reputable, experienced lender who knows what they're doing. If you need the name of a good one, just email me from my profile.
0 votes Thank Flag Link Sat Jan 29, 2011
Hi Anitad

Yes many ways to achieve the goal.

Rent to own, seller financing, and some banks may do so too
Depending on what your score is.

Good luck.
Web Reference: http://www.ruthandperry.com
0 votes Thank Flag Link Sat Jan 29, 2011
The answer will depend on how bad is your credit and how much down payment you can provide. If you can not qualify for "regular" financing there are still many other alternatives. Just be aware that the worst your credit is and the less down payment you can provide the worst the terms of your financing are going to be.

Carlos J. Ramirez, PC, ABR, CNE
Associate Broker/Realtor, HomeSmart -
0 votes Thank Flag Link Sat Jan 29, 2011

First you should have a good mortgage lender go through all your information to see if it is possible to get a loan. Keep in mind that sometimes one lender may not be able to help while another one can. So if the first one can't you may want to check with another one. Possibly a mortgage broker who can check with various places and not just a mortgage banker.

There are other ways of purchasing such as seller financing, lease purchase and even hard money lenders but they will normally cost more than standard financing. One hard money lender I know will want 30% down with 12% interest. 10% down if it is a property that they own. Some hard money lenders only want to loan for a short period of time and have rates as high as 18%. So it is always best to try to get normal financing first.

It may just be a situation on your credit that can be explained, or maybe you will have to clean up your credit. If you have to wait 6-12 months to purchase because you have to take care of some things, it would still be better waiting than to have paid a higher amount for a seller financed home when you could have purchased lower with some of the great deals that are out there right now. And even if the market starts to improve during the time you have to wait, most people think it will be a slow recovery and your buying situation should still be good.

Best regards,

Brenda & Ron Cunningham
West USA Realty
602-980-3133 / 602-499-0694
Recognized in the July 2010 Phoenix Business Journal as one of the Top 50 Realtors in the Valley
0 votes Thank Flag Link Sat Jan 29, 2011

Many of today's buyers that have serious credit issues that prevent them from moving forwand and purchaisng property are seeking "seller financing" or "lease options" as an alternative to traditional means of financing.

Good luck,

0 votes Thank Flag Link Sat Jan 29, 2011
OMG - whatever you do, Anitad, don't take any wooden nickels!
0 votes Thank Flag Link Fri Jan 28, 2011
Yes you can still buy a house. There are other methods of financing through private financing. I work with several investors that will finance you with bad credit. Of course there are other requirements since it would be considered a
0 votes Thank Flag Link Fri Jan 28, 2011
Generally speaking.....no....however not sure how bad your credit score is. The underwriting guidelines are more cumbersome than they use to be. It can be challenging getting a loan to close when a borrower has good credit. Even on a seller carryback, the seller is going to want assurance that you have the wherewithall to pay the loan but you should speak to a reputable lender and they can go over in detail and most of all put a plan in place so that you're able to get a loan in the not to distance future. Good luck.
0 votes Thank Flag Link Fri Jan 28, 2011
You might also consider buying a property with creative financing.
0 votes Thank Flag Link Fri Jan 28, 2011
How exactly does one define "good credit"?? There are WAY too many variables to securing mortgage loan pre-approval. Your would be wise to consult with a local, reputable mortgage lender. Don't keep guessing and hoping - face the dragon and find out EXACTLY where you stand.
0 votes Thank Flag Link Fri Jan 28, 2011
Dear Anitad:

Yes, check with some lenders. If you need some one that works with difficult credit situations, just ask.

A VA, or FHA, Fannie Mae, or USDA loan have low down payment requirements.

There are also possibilities for seller may carry or 'Hard Money' loans. Both may have higher interest and a healthy down payment requirements.

The next step? Asking a lender and sharing the details of your personal situation.

May I wish you the very best.

Jeff Masich
Arizona Homes and Land
Web Reference: http://ArizonaHomesLand.com
0 votes Thank Flag Link Fri Jan 28, 2011
That is a question that can only be answered by a mortgage lender who has taken an application from you and checked to see if the numbers add up. Besides your FICO score, they will look at your debt to income ratios and how much of a down payment you can offer to the deal. Anything anyone says here is just a guess, choose a good lender and find our the real truth yourself.
0 votes Thank Flag Link Fri Jan 28, 2011
Hold the presses..... I can do FHA loans down to 580 fico now, just came back this week. Contact me so we can find out where you are at credit wise and I will help you qualify.
0 votes Thank Flag Link Fri Jan 28, 2011
Hi Anitad!

First things first, You need to know what your credit score is. I can't tell you how many times I met someone who said they had poor credit and their score was above 700. My idea of poor and yours are two different things. Go to http://www.freecreditreport.com and pull your credit. Go to http://www.myfico.com and get your score. Determine what is making your credit poor. Then fix it.

You can also go straight to a mortgage lender and have them run your credit. This holds the benefit that they will be able to tell you what is on your credit report that is going to hinder your loan approval.

The minimum score for FHA is 640 & VA is 620 but keep in mind all banks have different standards. The other option as mentioned before is owner financing. I really don't see that as an option because most of them will also want decent credit.

The last option is a lease to own. They do exist but are rare. Basically a homeowner will let you live in the home and make lease payments that a portion of will be applied to a down payment. You will do this until you can qualify for a loan.

Best of luck,

Jonas Mancuso
Remax / Lakeland
0 votes Thank Flag Link Fri Jan 28, 2011
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