We have bad credit (536-516). Can anyone finance us? Would a trad. home loan or would a hard money lender be our best bet for a home under 40k?

Asked by Christina M. Landino, Tucson, AZ Sun Oct 7, 2012

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Debra (Debbi…, Agent, Livingston, NJ
Sun Oct 7, 2012
With all due respect - quite frankly, instead of looking for financing right now........you would probably be better off concentrating on increasing and improving those credit scores first.
1 vote
Pamela St. A…, Agent, Muskegon, MI
Fri Nov 16, 2012
I agree with Debbie. Make an appointment with a credit adviser (contact a trusted real estate agency in your area) for a recommendation. They can help you increase your credit score. For instance when it comes to paying off and closing revolving credit card accounts you need direction as it really is a science and those of us not in that business can easily make wrong decisions that will send your score the other way again. After 6 mo...a year...or more...you will meet with a lender and go through the process of obtaining a pre-approval letter. Now you are in a strong position when you make an offer with your pre-approval letter in hand. Your buyer agent will write the offer up with you and within the body of the purchase agreement make sure they write "pre-approval letter attached". If they do not use that lingo, then the listing agent may not convey to his/her seller that you have the pre-app and you will be a "weaker" buyer.
0 votes
Tina Lam, Agent, San Jose, CA
Sun Oct 7, 2012
You might have an easier time getting a loan with a hard money lender. For a home under $40K, you'll need to put down at least $20K and borrow the rest at 12-14% rates with your credit scores.
Web Reference:  http://www.archershomes.com
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