Home buying with bad credit?
Question: My husband and I are starting to look at buying a home.
However, our credit is very bad. It is improving, what with paying off the Visas (less than 10k to go!) the cars (one paid for!) and getting a start on the student loans.
Is there any way to get a mortgage with absolutely lousy credit? Short of going to Shylock’s Usurer and Meat market?
Answer: Contract for deed is when a seller holds title to the property until it is paid for. One problem with this is, if the seller has a mortgage on the property through a mortgage company this is probly not legal.
So if I sell you a house that I “own” but still owe a mortgage on and the mortgage company finds out I have passed this house on to you they may in many cases call the loan (demand payment in full)
A true owner finance is when the seller owns the house free and clear. The terms should be reviewed by an attorney and recorded at the court house.
FHA loans that were begun pre Dec. 1986 are non-qualifying assumptions. The owner can sign the house over to you without you having to qualify. If you can find someone with an older loan like this they might consider carrying a second mortgage on it for you. Or they might just sign it over if it is in bad shape or they can’t keep it rented etc.
Jim Walter homes are non-qualifying assumtions also I believe (don’t quote me on that one)
Also some mortgage companies will finance just about anyone if you have enough down.
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