Bad Credit Home Loans

Posted by admin on November 14th, 2008 at 12:00am

Question:
Wondering about bad credit home loans?
My husband and I want to vacate our apartment in June, but we went into a debt relief program that we are still in, and remain in in June. We both have horrible credit now below 530. Is it possible to obtain bad credit home loans? We are going to be hopeful in fully buying in the 115 to 120 thousand range. Any help would be appreciated.

Answers:
With the situation of the market as it is now, it will be highly unlikely to predict what you will be able to obtain in June. I will on the other hand give you some advice and a little inside information. The amount of cash you can stash away for a down payment should be your number one priority. In your situation, you will require one. The more you stash away, the higher your chances of obtaining a loan. Your lender will request that you have a little down payment (usually ten percent down) and you will probably require a little assistance. There are many lenders out there that will lend up to 55% to 60% of the buying price of a home at a really steep interest rate over thirteen percent. If you are fortunate, you might even get up to eighty percent but that depends if those lenders are still in business in June. You will additionally have to request the seller to carry a note for the balance you can’t cover with the loan and the down payment. We’ll take the worst situation !
other than being flat out rejected. You obtain a loan for 65% of the buying price. That would be about 78 thousand in your case. You have ten percent down (hopefully) which is twelve thousand. You would request the seller to perform a seller carried second mortgage. This is the same as the seller being willing to take regular payments on the remaining difference ($30,000) at a specific interest rate over a specific term in the form of an additional mortgage. typically 15 or 30 years. Best case most likely is you reach 80% financing. This would mean that your seller could only have to issue a 10% ($12,000) seller carried second mortgage. All else remains the same. Therefore every month you would be responsible for two mortgage payments, one toward the institutional lender on your first mortgage and the other to the seller on your other mortgage. Not possible? You would be amazed. It happens all the time and most of the country is going to see a tremendous buyers market so se!
llers are willing to get very clever. You could also look into!
what is
known as a lease to own. They are typically heavily in the sellers side but can be used to puchase a home. There is also what are called wrap around mortgages that allow you to pay an actual regular mortgage payment each month without having to require a institutional loan. In many states, they really allow you to be on title when the deal is complete. A lot of counties, cities, and non-profit companies have what are know as down payment assistance programs. They will loan you money to buy a home and in some situations the loans do not need to be reimbursed. If those are not realistic then there is always ACORN Homes. Remember to check with your lawyer or a good mortgage broker in your region since laws very from state to state.

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