How can I get a first time homeowners loan with bad credit ?

Asked by Carol Lynn, Franklinville, NC Mon Sep 1, 2008

I have never bought a home , I have not so good credit , how can I get a loan for my first home ?

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lendersnetwo…, Agent, Plano, TX
Sun May 12, 2013
I have a background in credit and real estate, now I help people with credit issues get approved for home loans and referred to a real estate agent. I have owned my real estate company, The Lenders Network for 7 years we are nationally recongized as a leader in the mortgage industry. We will be able to get you approved for an FHA home loan with a 580 mid score, sometimes lower. Read about it more here. I look forward to helping you.

The Lenders Network
1 vote
James Wheeler, , Tampa, FL
Mon Sep 1, 2008
There are a variety of government loan programs that may be suitable to your needs. If your credit situation can be reasonably explained, it may be suitable as is. If not, it may need time and attention first. Either way, you should discuss this with an experienced mortgage specialist at a government-approved lender (such as my company), so that you have acces to the advice and loan programs that can help you achieve your goal of homeownership.
1 vote
ligue555, Home Buyer, Beechhurst, NY
Mon Jun 12, 2017
I own a home worth $1.6 million, the remaining mortgage is $3,000. My husband and I owe the IRS $50,000 from last year, which is reflective in our credit report, leaving our score in a "poor" status. Can we get a loan using our home as collateral? Thank you.
Lisa Guerra
Cell# (917) 796-0702
0 votes
No you can't. I'm a retired realtor & still in contact with lenders. I need to explain about 1st, 2nd & 3rd positions and how it affects you. The issue is when lenders give out home loans, they also take a risk that the buyer may default. If you were to default on a loan, the 1st person to collect any money owed (1st position) is any tax collection authority - IRS, state taxes, county taxes, property taxes, etc. This means they can legally use your home as collateral, sell it and take the money owed them. Your lender may get very little or nothing from the sale. The 2nd person to collect (2nd position) is your lender. If the IRS took the house to get their $50,000., how will your lender get paid for the loan they gave you. Therefore, lenders need a guarantee that if they give you a loan, they want to be in 1st position- ahead of the IRS. In your situation every lender will refuse to give you a loan until you pay the IRS first.
Flag Mon Jun 12, 2017
Rdallas23, Home Buyer, Silver Spring, MD
Sat Jul 30, 2016
Iam Robert Dallas and iam feed up withhabimg to live with family and friemds most pf them are mpt to clean and i dont like cleaning up for free behide others that why i wont to get my own place of i dont fell like cleaning my home i could get a maid service to do ot fot me family.wont help you when you are not able to help one self. And they put you out pwn the streets.neen there done that just getting over my sickness Subcontractor home inspector need a little help
0 votes
Ziggysnumber1, Home Buyer, Franklinville, NY
Wed Jun 10, 2015
i own my home how do I take out a loan to do major repairs
0 votes
, ,
Mon May 13, 2013
Good afternoon Carol,

We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.

It is unlikely you could be approved for mortgage financing with that credit score at this time.

Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE.…

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran
NMLS #40140

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes
Jessica Bate…, Agent, Beverly Hills, CA
Sun May 12, 2013
Randy and The Lenders Network are amazing! They can help you get a home loan with less than perfect credit! I seen them work miracles... I send a lot of clients their way!

Good Luck!
0 votes
Thomas McGiv…, Agent, Farmingville, NY
Tue Sep 2, 2008
You're going to need to talk wtih a mortgage specialist. Check out the link for a resource.
0 votes
Carmen Di Bi…, Agent, Nyack, NY
Tue Sep 2, 2008

You did not say how bad, "bad" is. Assuming you mean credit scores in the 500's, you will best serve yourself if you do some credit repair. Often there are duplicate reports or paid accounts that still appear on your report. Many areas have not for profit organizations that offer First Time Homebuyer counseling and credit repair. They are usually affiliated with a federal or state mortgage program and often offer some type of grant upon completion of the program. The other route is a "hard money" loan. You will pay steep interest rates and points. Your best bet is to take it slow, do it right, get counseling. Avoid the quick fix and become an "A" rated consumer for life.
0 votes
Thomas McGiv…, Agent, Farmingville, NY
Mon Sep 1, 2008
Carol -

What's making you want to buy now?

check out the link below - best 25 bucks you'll spend.
0 votes
Gail Gladsto…, Agent, 11743, NY
Mon Sep 1, 2008
Please contact me off line at and i will recommend a broker who specializes in assisting with these situations.
Web Reference:
0 votes
Dallas Texas, Agent, Dallas, TN
Mon Sep 1, 2008
Depends on your credit score. Contact a local mortgage broker review your file. HOWEVER if your scores below 620's recommend locate a good credit repair company the proceed. If you debt ratio is high pay off your credit cards reduce the balance HOWEVER never close those accounts. Your scores will increase.
Web Reference:
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