Mynyel Posted November 27, 2010 Share Posted November 27, 2010 As with a lot of people right now we have horrible, nasty credit. We have had it for years. We are looking to move and have found a decent home that is inexpensive (and within our means) and would suit are needs, not to mention be $200 less than what we are paying in rent (and that is after taxes and insurance figured in). I need to know if anyone knows about bad credit mortgages and if they are really obtainable? Anyone have any experience purchasing a home with horrible credit? What say the hive? :bigear: Quote Link to comment Share on other sites More sharing options...
Quiver0f10 Posted November 27, 2010 Share Posted November 27, 2010 A few years ago it was possible to get a mortgage with bad credit but with the housing crisis and the economy tanking those type of mortgages are no longer an option. Quote Link to comment Share on other sites More sharing options...
angela in ohio Posted November 27, 2010 Share Posted November 27, 2010 As with a lot of people right now we have horrible, nasty credit. We have had it for years. We are looking to move and have found a decent home that is inexpensive (and within our means) and would suit are needs, not to mention be $200 less than what we are paying in rent (and that is after taxes and insurance figured in). I need to know if anyone knows about bad credit mortgages and if they are really obtainable? Anyone have any experience purchasing a home with horrible credit? What say the hive? :bigear: What do you mean when you say that it would be $200 less? Is that if you rented it? That's a good option while you clear up your credit. But if that's the mortgage monthly cost that they are advertising, it is likely for good credit, and it will cost you much more than that with bad credit. If you have a credit union in your area, go to them and see if you qualify for a loan there. They are less likely to take advantage of you than a national "bad credit" lender. Quote Link to comment Share on other sites More sharing options...
dcjlkplus3 Posted November 27, 2010 Share Posted November 27, 2010 I say that it might be discouraging, but it may also be worth a try to see you qualify for the type and amount of mortgage that you need. I would think the worse that could happen is they say no, but at least then you would know. You may want to start with your bank, or a referral from someone. Quote Link to comment Share on other sites More sharing options...
Pippen Posted November 27, 2010 Share Posted November 27, 2010 We are looking to move and have found a decent home that is inexpensive (and within our means) and would suit are needs, not to mention be $200 less than what we are paying in rent (and that is after taxes and insurance figured in).:bigear: Make sure to include a reasonable sum for maintenance and repairs each month when you compare to what you're paying now. Things WILL go wrong and there's no landlord to call when the furnace goes down or the plumbing emergency happens. Quote Link to comment Share on other sites More sharing options...
Mejane Posted November 27, 2010 Share Posted November 27, 2010 A few years ago it was possible to get a mortgage with bad credit but with the housing crisis and the economy tanking those type of mortgages are no longer an option. :iagree:Even people with good credit are finding it difficult to get loans. Sorry to be so discouraging. Are you working with a real estate agent? What does s/he say? Quote Link to comment Share on other sites More sharing options...
Reeciecup Posted November 27, 2010 Share Posted November 27, 2010 We had bad credit, and always rented. But then we paid everything on time for 2 years, and did what we could to rebuild our credit, and we were able to get an FHA loan at 6% interest. We took a 15 year loan, rather than the 30 year, and that increased our payment by about $100 per month. We bought a small home but it's ours and if I never made an extra payment it will be paid for in 10 more years. I think I can get it paid off in 5 though because we do make extra payments. Definitely go to your bank, they will tell you what you need to do. Mortgage brokers can end up costing you a lot more if you're not careful. Quote Link to comment Share on other sites More sharing options...
Trish Posted November 27, 2010 Share Posted November 27, 2010 Also you might have to deal with mortgage insurance, which also raises your monthly payment. Honestly, in this climate if I were in your shoes I don't know that home ownership holds that many advantages. Home prices are still going down, and will be for the foreseeable future. Good luck! Quote Link to comment Share on other sites More sharing options...
Jean in Newcastle Posted November 27, 2010 Share Posted November 27, 2010 Why do you have horrible credit? This is a rhetorical question - don't answer! If your credit is bad because you can't meet your monthly bills, you will need to fix that problem before trying to add a new financial obligation into the mix. If your monthly bills are paid on time, you might be able to use that fact as leverage at the bank - maybe. I know that lowering your monthly obligations by lowering the amount you put out on housing is good but you might have to check into lowering it other ways first before you will be allowed by the banks/lenders to borrow money on a house. Quote Link to comment Share on other sites More sharing options...
Mergath Posted November 27, 2010 Share Posted November 27, 2010 If there's any chance you might end up late on a payment, I wouldn't buy a house right now. From what I've heard, the banks are foreclosing on everyone who even thinks about making a late payment. Better to wait until the foreclosures stop to buy, if you ask me. We rent, and I've never been happier to NOT own. Quote Link to comment Share on other sites More sharing options...
Parrothead Posted November 27, 2010 Share Posted November 27, 2010 You can check into owner financing. Sometimes the owner is willing to finance for a 2-5 years until any buyer credit problems are fixed. Quote Link to comment Share on other sites More sharing options...
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