if i don't have any credit,can i mortgages a house??? how much for down payment if i don't have any credit???

Asked by Ping2_pinky, Wed Jan 2, 2013

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Jessica Tracy’s answer
Jessica Tracy, Agent, North Windham, CT
Sun Jan 6, 2013
Do you have no credit, such as you are young and staring out, or do you have poor credit? Depending on your situation, you could improve your credit score. I would talk with your bank or a mortgage broker about your options. When I was young (19) I had spoken to a mortgage broker about what needed to be done for me to purchase a home. I followed their instructions and bought a house a year later. If you need a referral, I would be happy to assist.

Good luck!
Jessica Tracy
CG Real Esate
0 votes
Amanda Albert, Agent, Woodbridge, CT
Thu Jan 3, 2013
Unfortunately with poor credit I doubt you will get a mortgage. My suggestion is to be diligent about paying your bills on time and building that credit back up. Also try to save some for the down payment. Then try again in about 6 months. Good luck....Amanda
0 votes
David Carr, Agent, North Haven, CT
Thu Jan 3, 2013
To build credit you have to use credit, so look at your expenses that are recurring (gas, electric, food store, heating, telephone, etc) then pay the bill, on time, with a credit card every month. Save the money then pay the card off in full every month. Then get another credit card. If you use 3 credit cards (One per month) over a year ( 4 times per year per card) you will quickly build new credit. Do not buy what you can not pay for in 30 days. No new toys, clothes or vacations. Period. Buy it used, or save up. Good Luck.
0 votes
Phil Zimbardi, Agent, Orange, CT
Wed Jan 2, 2013
Most hard money lenders want to see good credit in this market.
0 votes
Maggie Griff…, Agent, Berlin, CT
Wed Jan 2, 2013
Actually, there are situations where you would be able to prove credit, such as a rent payment, utility payment, etc. Have you spoken to a lender as of yet?
0 votes
Lisa Orme, Agent, Windsor, CT
Wed Jan 2, 2013
You need to have a credit history, and it needs to be good. While you may not have credit cards or other history, there is a way to build your credit history. Consider a secured credit card to start with if you are unable to get a standard credit card. Use it carefully and pay it off promptly. Also, a good mortgage broker/lender will also use alternative sources for credit history such as rent, cell phones, cable bills, etc. You may also be able to get a small personal loan from your local bank or credit union; set the money aside to make payments on it for 3 to 6 months, and then pay off the remainder. An FHA mortgage requires 3.5% downpayment, and conventional loans 5-10%. Of course, the higher your downpayment, the lower risk for the bank, and the more tolerance they may have for a less than stellar credit report. Once you have a 20% downpayment, you avoid the additional cost of mortgage insurance.
0 votes
, ,
Wed Jan 2, 2013
For conventional mortgages you need good credit but NOT for Hard Money (also known as Private Money) loans. Credit doesn't matter. Generally you are required to have 30% for a down payment on the purchase price or 30% equity in some other property to use as collateral.

My husband and Broker of our company allows 70% of the value of a purchase to be covered by private investors. It does vary per Lender but I don't know of many others who would cover more than this, due to the risk Hard Money takes.

Hope this helps.

Best, Lynn - Co-Owner and Realtor/Flipper Chick
0 votes
Michael Huff…, Agent, Englewood, CO
Wed Jan 2, 2013
Everyone's situation is unique, if your thinking of purchasing a home soon, contact a lender and discuss your financial situation with them.
0 votes
Phil Zimbardi, Agent, Orange, CT
Wed Jan 2, 2013
You need to have good credit.
0 votes
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