Poor Credit Mortgage Loan

Posted by admin on January 17th, 2009 at 12:00am

Question:
Can we find a poor credit mortgage loan for a home?
My fiance and I are renting a house in our neighborhood and currently paying 1100 dollars a month in rent. This is pretty expensive for the area which we live in. We are wishing to buy a house and feel that we have enough income, which is around $90,000 per year to own a home. The trouble is that our credit scores are currently the high 500s. We have been informed that we may be approved for a poor credit mortgage loan but may get a higher interest rate. We have very small debt between the two of us and also have a down payment put aside from a family member. I am just questioning if anyone has received a poor credit mortgage loan with a similar situation?

Answers:
It is certainly possible to get a poor credit mortgage loan. The lease on the house we are currently renting is soon to expire and out of curiosity I contacted the bank to find out if it was even a possibility to get a loan. My credit score is approximately 560 and we were able to obtain a poor credit mortgage loan with only a 3% down payment and a 30-year-fixed including an interest rate of 6.6 percent. Perhaps some people think that is high but I’m certainly willing to lock that in for now until am able to get a handle on my credit rating. I think you should certainly start contacting lenders and check what is available in your region. Good Luck!

I am not sure if this will help, but just in case you will have a high interest rate, I know that a number of cities have first time buyer services who will offer grant money to the down payment, if you enroll in a money management class. but there are catches, like in our city we need to remain in that home we buy with ther grant money for five years. and if we fail to do so, we would need to pay it back. The city can search for special financing for poor credit!

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