Mortgage For Poor Credit

Posted by admin on October 16th, 2009 at 12:00am

Question:
Can I get a mortgage for poor credit?
I am planning to buy a house, but have a poor credit score of approximately 540. Would anybody know of someone that would finance a first time home buyer with a very low credit score such as mine? I do have a steady job that I have worked at for about three years and make adequate money. I really want to find something with an interest rate of less than ten percent, if possible, but any details would be great. Thank you.

Answers:
Do you think that with your payment record you would loan yourself money? I recommend you keep renting until you get more money and bring your credit score back up.

Poor credit history is a result of a series of late payments, bankruptcy or bills that have not been paid. No matter how poor your credit history is, with a mortgage for poor credit loan, you can easily obtain money to finance your home. This assists you in buying a home, redecorate the house or consolidate your loans. This type of loan brings down your total monthly payment from lower interest charges and liabilities. Since this loan qualifies for tax relief, your tax liability becomes less.

Your best chance would be to go with owner financing. Unless you give a huge down payment, like 20 or 25 percent, even then it might not be done. Renting a place is not that bad.

A score below 580 and you will not be very lucky to find many lenders that are willing to issue you a mortgage for poor credit loan.
You need to work towards bringing your score up. How did your score become this low without any credit card debt? You might have to get a secured credit card and utilize it but pay it back every month just to establish some payment history, which will bring your score back up. Furthermore, pay some additional payments on the car to bring your debt down.

Under Poor Credit Questions