How to obtain a house loan with <600 credit?
Recently I have concidered looking into purchasing a house. I do not have great credit by any means, but do have decent income. I only have 1 debt in collections at the moment, and that is being paid on. Is it reasonable to think I could get a house loan?
Tags: Credit, House, loan, Obtain
I would recommend trying to get someone to cosign on it with you… It will probably help your rates on the loan quite a bit!
Ask a family member/relative as a favor!
Just make sure not to stick them with the payments ><
You should have no problem. There are a lot of good programs out there for first time buyers also!
if you have a credit score greater than 600 then you are doing fine… and when the lender sees that you are paying on that debt that will show that you are loyal, even when things go bad… good luck… also… lending tree right now has a 4.5% rate going on… they are very forgiving about past debt too…
It all depends on a number of factors such as your loan to value, income and assets. If your credit score is less than 575 and your LTV is greater than 80% then it will be very tough in today’s market to obtain financing. Obtaining financing depends on many things including your credit score.
I dont think any bank will loan you money because you are just gonna waste the money on new crack pipes for you boyfriends
Even if you could get a mortgage, your interest rate would be high. That’s going to translate into tens of thousands of dollars over the life of your loan.
A better alternative would be to pay off that debt in collections asap. Give it some time (like a year+) to raise your credit score. In the meantime, start putting away all your extra cash towards a down payment. And have an emergency fund built up – owning a house has all kinds of expenses you have to pay yourself if something breaks. Plus an emergency fund will keep you from getting behind if you have a health or job ‘happening’.
Owning your own home is great. Just be in good financial/credit shape when you get one. You probably don’t want to turn into one of those sad foreclosure stories.
It’s people like you (with bad credit and debts already in collections) who created this whole ‘sub-prime mortgage’ mess in the first place.
The banks have learned their lesson; they won’t issue mortgages to people with bad credit.
Do you have the cash on hand for a 20% down payment?
If not, then start saving until you do.
If you do, then why do you still have debts?