Mortgages with poor credit
Question: Anyone with any good ideas on obtaining mortgages, when the credit history is, well, poor, at best.
Bankruptcy 8 years ago, Chapter 13. Defaulted student loan. Couple of other small debts.
I presently have about 25K available, and would like to purchase in the 60K range.
Answer: Well I’m not a loan officer, but if you’ve got 25K to invest, I wouldn’t think there’d be a problem. I didn’t have great credit (several *old* medical bills, a 5K debt that I borrowed money to pay off, no “re-established credit) and I’m a single mom. I only paid 5% down on a $77,000 mortgage. It wasn’t easy, but I’ve been living in my house for almost 3 months, so it is possible. I guess it depends on where you live, and what lender you go with. It appears that you will be making a substantial downpayment, and I think that should balance the bad credit thing. But the best way to find out is to call some lenders. Banks and credit unions may have tighter standards. Look in the newspaper or phonebook and get the names of five lenders and find out what they have to offer. Here in Indy, there are several lenders whose slogan is “Bad credit, slow credit, no credit– no problem!” I’m not saying those are the kind of people you’ll have to deal with, but be aware that sometimes with less than perfect credit, you get less than perfect terms. But don’t let anyone jerk you around with some outrageous interest just because you have “bad” credit. You have cash, that should count for something.
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Filed under: Bad Credit Loan
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