i dont have good credit. Is it still possible to get a home loan???

Asked by Ptc_sweety, 78237 Tue Jun 9, 2009

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Matt Stiglia…, Agent, San Antonio, TX
Tue Jun 9, 2009

Usually when people say they do or don't have good credit, I usually ask them if they know what their credit score (FICO) is (please don't reply publicly with that information, I'm just telling you what I ask people). Most people think it's one way or the other, but are often surprised at what it really is.

These days, lenders are being quite strict with credit qualifications. Typically, a 620 is what you're shooting for, although I know a few lenders who can get it done at 580.

I recently had a friend say they had horrible credit...their credit score? 720. Credit scoring is a complicated thing and if you're close enough to one of the goals, there are often simple steps you can take to help boost your credit in a short period of time. I do not recommend you call one of the many credit repair companies you hear of on TV or radio. Although I know there are some honest to goodness companies out there, I have yet to find one. Perhaps on of the other agents on here can recommend a decent one.

I have heard too many bad stories about those sorts of companies - taking money up front and then doing nothing to repair a person's credit...I would hate to think I steered you in that direction, which is why I don't recommend them.

Perhaps your best bet is to sit down with a reputable lender. One who can look at your credit scores and even if your credit score is too low, they can recommend some steps to take to help get you to where you need to be. Sometimes seeing someone else's view of your credit report can help tremendously.

Hope that helps!

Matt Stigliano, Realtor®
Exit Realty North-San Antonio
"Your all access pass to San Antonio real estate."
2 votes
Trudy Pape, , San Antonio, TX
Tue Jun 9, 2009
This would depend upon what your credit score. FHA loans are the easiest type of real estate mortgage loan to qualify for. The FHA guidelines for loan qualification are the most flexible of all mortgage loans that require less than 5% down payment.

Following is the basic FHA loan qualification guidelines.

Two Years of steady employment, preferably with same employer.
Last two years Income should be the same or increasing.
Credit report should typically have less than two thirty day lates in last two years with a minimum credit score of 580 or higher or no credit score at all.
Bankruptcy's must be at least two years old, with perfect credit since discharge.
Foreclosure's must be at least three years old, with perfect credit since.
Your new mortgage payment should be approximately 30% of your gross (before taxes) income.
These are some of the most basic of FHA guidelines for qualifying for a FHA loan. If you have answered yes to most of these statements, you probably qualify for a FHA mortgage loan.

Your first step would be to talk with a loan officer. If you do not know a loan officer, please contact me and I can recommend several for you.
1 vote
Bobby Crow, , Savannah, GA
Mon Jun 3, 2013
It is definitely possible to find financing, but many lenders will require a larger down-payment, usually about 10%.
0 votes
Gregory Touc…, Agent, San Antonio, TX
Sun Feb 24, 2013
It really depends on your score.

It is possible to find programs for lower scores, but when buying a home you really make your money on the purchase, Usually, the more square footage, the better your return on investment in the future. So the better your score the better your purchase power is.

There is a company I know of that can help individuals such as yourself to overcome the credit obstacles that specifically prevent you from purchasing a home. I have referred several clients to them and they have been in their homes within 6-9 months.

You have already taken the first step by overcoming the fear of rejection by asking the question. Great! Now let me guide down the right path to reach your goal sooner than you think.

Gregory Touchstone
Keller Williams Realty
0 votes
Rosalie S. A…, , San Antonio, TX
Sun Feb 24, 2013
It is possible. You have the option of purchasing and owner financed home or fixing your credit.
0 votes
Stuart McWil…, Agent, Lakeway, TX
Fri Nov 9, 2012
The best thing to do is speak with a mortgage professional who can evaluate your situation. If you are interested in speaking with one just let me know I have a few contacts I can recommend.

0 votes
Johnny Morrow, Agent, San Antonio, TX
Fri Nov 9, 2012
There are many options for people out there to obtain a home loan.

If you have bad credit, there are lenders that will loan based on the house, with a larger down payment and a higher interest rate.

You can also try owner financing. just make sure you do it correctly.

And one last thing. How bad is your credit? IF you are not in a hurry, your credit can be reviewed and you can be put on a plan to obtain the best credit score. many of my clients have taken this route.

you can reach me at 210-897-2645 with any questions.
0 votes
Torquil Cree…, Agent, Austin, TX
Mon Jul 18, 2011
You have gotten some good answers here already, but I will add something that has helped many of my buyers purchase new homes when they were turned down by other lenders.

Just an option you might want to look into:
DR Horton (new home builders) have one of the VERY best FREE programs I have ever seen for assisting you with credit issues and getting you qualified for a loan. Look around your desired area and see if there are any new neighborhoods being built & just go in to the office and tell them you would like to meet with someone about loan process.

It depends on many factors, but this is a good place to start getting your score up!

All the Best,
Torquil Creevy
0 votes
Johnny James, Agent, Carson, CA
Sat Jan 9, 2010
yes it is possible to get a loan without good credit and the interest rate may reflect that fact.
0 votes
Karen Burns, , Auburn, CA
Tue Oct 13, 2009
I received an email from a mortgage company a couple of days ago that advertised:

Some great examples:
Below 620 ficos down to 550.
Collections need not be paid.
203ks to 580 fico
1/2% Down Loans
USDA Zero Down Loans

With the stock market as it is today, some people are lending others money to purchase houses. Their note is secured by real property and they earn more interest doing that than the bank will pay them in their savings, cd or money market account. I know people that lend money to others from their self-directed IRA accounts. And there are sellers out there that are willing to owner finance.

It is not impossible to find financing when you have poor credit; you may have to look a little longer and try a little harder....but it can be done. You know the saying....where there's a will there's a way!

Good luck!
Web Reference:  http://www.karenburns.net
0 votes
PETER VARGAS, Agent, San Antonio, TX
Sat Jun 27, 2009
Good credit is important but if you work closely with a mortgage broker or a loan officer you can position yourself in a matter of months to be able to qualify for a loan to buy a home. Always check if anyone is going to run your credit for any purpose bnecause too many inquiries could be affecting your crewdit score also.
0 votes
Josh M. Boggs, Agent, San Antonio, TX
Thu Jun 11, 2009

Great answers here so far. I've met w/ over 20 buyers so far this year w/ not so perfect credit, but we have been able to find them a way to start either getting their credit cleaned up and ready for a traditional loan, or ways to look for "owner-financing" and other non-traditional methods of purchase. I know of 3 lenders right now that are using credit scores 580 < as long as you don't have anything delinquent within the past 9 months.
Web Reference:  http://www.eXposedHomes.com
0 votes
Hannah Flieg…, Agent, Larkspur, CA
Tue Jun 9, 2009
Maybe your need a credit score boost maybe you need credit repair. You can see my blog and see the difference.
0 votes
Catherine Mc…, , San Antonio, FL
Tue Jun 9, 2009
All the answers are good ones. What really matters is exactly what the credit issues are and their impact on your credit score. You would have to have an experienced lender pull your credit report and go over the options that you have to raise your credit score. There are some simple things that you can do that will have a big impact on your credit score. I have had a borrower simply make a $58 payment on a credit card and that raised his credit score over 20 points! Not all cases are that easy but you won't know until you have your credit report.

If you have any further questions, please contact me. I will be glad to assist.
0 votes
, ,
Tue Jun 9, 2009
But is it 'Fair Credit'?
Do you know your scores?


Here is a free book about credit.
0 votes
Danny T Thom…, , Austin, TX
Tue Jun 9, 2009
Short answer? No... you need at least a 620 mid score on your credit... All lenders are looking closer than ever.
I highly recommend that you find a good lender who will coach you on how to clean up your credit, and work hard to get your affairs in order. The days of easy money are over...

God bless!

Web Reference:  http://DannyTHomes.com
0 votes
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