Question Details

Armando & Ju…, Home Buyer in San Marcos, CA

how can i do it to get a home with out a down paymant and bad creadit?

Asked by Armando & Juanita Vasquez, San Marcos, CA Tue May 20, 2008

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Right now, it's probably going to be rather difficult.
You would probably be better off saving up a little bit of cash, and going with an FHA loan.
There are some programs out there for people with bad credit, but given everything that's going on - they're not as easy to get into as they used to be, and the terms are really not very good compared to even the 3% down option of an FHA loan.

Honestly, your best bet is going to be to do whatever you can to clean up your credit history over the next 12 months or so (you'd be supprised what even a year can do), use that time to save up a small amount of cash, and you'll be in a much better position.
1 vote Thank Flag Link Tue May 20, 2008

I agree with the answers you have been given. FHA will be you best bet. The thing is no one knows truely how bad your credit is. It can be better than you think or worse as far as financing goes. The best advice I can give would to be to visit a bank or broker that has a reliable, and knowledgeable underwriter on FHA guidlines, then submit application, or get pre-approved.

Also if you qualify for FHA, check with your state. Many states in America have additional state funded programs to assist you with down payment to obtain a true 100% loan. I know mine does, and its the only program around town without a minimum credit score! Today, FHA guidelines have NO minimum credit score, however the banks buying and servicing their loans want to see a 580. Anything below must be manually underwritten by an actual person. And even then I doubt any manual underwrite will succeed under a 550 without unusual circumstances or state assistance. Good luck with everything!

Brent Bester
Mortgage Professional
0 votes Thank Flag Link Tue May 20, 2008
Hi Armando and Juanita, 100% financing is still available in today's market. You need to have around 700's FICO scores, a trackable and steady income. If you have questions, please contact me.
0 votes Thank Flag Link Tue May 20, 2008
Your best bet right now is going to be FHA. There is a hit to the rate for most fha lenders if you are under a 580 fico score. You can get your down payment from the Ameridream Foundation. Here is some additional info on FHA mortgages.
0 votes Thank Flag Link Tue May 20, 2008
I agree with Myke (hey, Myke, does that surprise you?): Save some money, clean up your credit, and then go with an FHA loan. Actually, check with a mortgage broker--a good one--now for advice on how to address those issues. As Myke says, you can make significant improvements to your credit in 9-12 months. And, frankly, there will still be a lot of real estate bargains around. Wait and do it right.

Good luck.
0 votes Thank Flag Link Tue May 20, 2008
Don Tepper, Real Estate Pro in Burke, VA
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