Brandy10616, Renter in Mount Gilead, OH

HOW DO I GET A LOAN FOR A HOME WITH POOR CREDIT?

Asked by Brandy10616, Mount Gilead, OH Wed Jan 19, 2011

I AM LOOKING TO BUY A HOME BUT I HAVE POOR CREDIT . IS THERE ANYONE WHO WILL OR CAN HELP ME I REALLY NEED HELP PLEASE

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7
Robert Pratt, Agent, Chicago, IL
Fri Jan 21, 2011
Bad Credit is a relative term. without knowing what your score is, it will be difficult to give you any accurate advice on what to do. Having said that, one of your options will be to look for Owner/ Seller Financed properties. in this scenario, you will be able to get a loan from the current owner instead of the bank. In most cases it requires a larger down payment to offset the seller's risk, but the costs associated with such a loan are normally lower, and of course- you'll actually be able to buy a place.
Web Reference:  http://www.dreamtown.com
0 votes
Matt DiBiase, , Portland, ME
Wed Jan 19, 2011
If you have a good mortgage broker, they can put you in touch with people that can directly work with you on re-establishing and building your credit. It can take a while, but is worth it in the long run when you can own your own home!
Web Reference:  http://www.DirectMaine.com
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Herb Baldwin, Agent, Mt Gilead, OH
Wed Jan 19, 2011
Brandy,
All of my colleagues who answered your question have good advice. My suggestion is to work with a local real estate agent and for them to help guide you to a reputable lender that can help you through the process of improving your credit. Be prepared for this to take from a few months to a few years, depending on your personal situation. You can fix the situation, but it takes work and discipline on your part to dig yourself out of this hole.
Web Reference:  http://www.herbsells.com
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David Jaffe, Agent, Arlington Heights, IL
Wed Jan 19, 2011
Hi Brandy,

It is un-likely you will qualify for a conventional loan without a 700 credit score, however FHA and some other government backed loan programs allow credit scores of 600 and higher (some as low as 580). Be aware, the interest rate for someone with damaged or poor credit will be much higher than traditional interest rates, because they are high risk loans (likely to default).

My best advise is to take 6-12 months to repair your credit, eliminate dept, and work directly with the 3-credit reporting agencies to eliminate false or old information. Additionally it is vital to save money for your downpayment (generally 3 1/2% or 5% of the purchase price of your new home). Note: don't fall prey to credit repair scams, contact the attorney general of your state for a referral for a reputable company who handles credit counseling.

Best of luck,
David Jaffe-SRES, CDPE
Realtor-Coldwell Banker
0 votes
James Deskins, Agent, Worthington, OH
Wed Jan 19, 2011
Brandy, I feel for your situation. The best thing you can do is learn how to repair your credit so you can get a CONFORMING loan. If you are considering buying in Mt Gilead or in the area you may eventually qualify for a USDA loan which may help you with down payment. But you have to qualify first for the loan. I strongly advise you NOT to get a NON-CONFORMING loan, even if you find one. Those are loans for people with bad credit. They are dangerous and cost you many times more than a standard loan. Get hooked up with somebody who can help you repair your credit. That's where you should start. There are agencies out there who will help you with this. Consumer Credit Counseling is one of them.

Good luck.
0 votes
Wed Jan 19, 2011
Brandy,
Improving your credit situation is the number one priority, HOWEVER, there are still lenders who will work with buyers in your situation. Where are you looking to buy, andin what price range? Other factors could also prevent you from getting approved for a mortgage, such as income, amount of current debt, employment, etc.

Hope this helps.

Diane Menhenett
RE/Max Trinity
Brecksville, Ohio
440 212 0710
0 votes
Dan Tabit, Agent, Issaquah, WA
Wed Jan 19, 2011
Brandy,
Home ownership is not for everyone. Home ownership is a responsibility and a privilege, but not a right. We tried loaning money to lots of folks with bad credit a few years ago and while some were helped, many others have been hurt. I don't know your circumstances, so your situation may be out of your control, but if you currently have bad credit, you may not be able to buy right away.
First, go to work and solve the problems which caused your credit to go bad. Increase your income, cut your expenses and pay your bills on time. Establish this habit and your credit will take a turn for the better.
Second, if there are items on your report you can legitimately dispute, do it. You'll need proof that the accounts are not yours, paid or in error. There are books and services to assist with credit repair, tread carefully there are lots of scams out there. You can work directly with the credit reporting agencies on this for free.
There may be homes available in your area with a lease option. The benefit of this arrangement will really depend on how the terms are arranged and what the market does during the next year or two. This option may get you into a home while you are working on the other issues. Find a local agent with experience dealing with these.
I hope this is helpful and I wish you the best.
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