how can i get a home loan with no money down and a credit score of 520?

I am trying to purchase my duplex but all I have is my deposit and my pay. My credit is also bad with a score of 520

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  • 1 decade ago
    Favorite Answer

    Unfortunately, no lender that isn't a predatory one will offer 100% financing to someone with a credit score as low as yours is. Infact people with 700+ scores are having a hard time getting 100% financing. If you are approved for a loan, expect the terms to change at the closing table, and the interest rate to skyrocket in a few years.

    Source(s): I'm a sub-prime loan officer for a non-predatory lender :)
  • 1 decade ago

    You probably could have done that a couple years ago. But I agree with the first poster nobody is going to do it right now. They have way too many foreclousers going on.

    I would see if you could do what is a called a lease option. You lease the property for a year and then instead of a purchase you can acutally refinance it. You will have a proven payment history. This will help you. With the lease option dont pay the seller directly pay an escrow company that reports to the Credit Bureaus. This will improve your scores over the next year. Then you will most likely be able to refinance the property after a year. Call your local broker, if they have no clue what im talking about, call another one.

    Source(s): 30 years mortgage real estate exp.
  • 1 decade ago

    You can't.

    If anyone says they can get you a "No Money Down Loan" with those FICO's they are a liar. No lender will take all the risk and you no risk should you default on the loan.

    First of all you have to have a down payment and funds to cover closing costs if you go the traditional home purchase route. Any lender will want to see that you are responsible enough to make the payments. And with FICO's like that, you are not a top candidate.

    The only way around it is if you found a home owner who is in distress and will let you take over the mortgage. But you would need to have the money to bring the default amount current if it is a foreclosure. The homeowner may possibly want some money up front before they deed the house over to you.

  • 1 decade ago

    In your dreams. Sorry, but with that score any loan that you might find will be so prohibitively expensive that you'll be in foreclosure in 6 months or less.

    You need to rent for a few more years and get the score up by at least 150 points to get anything close to a decent rate. "A" paper is going for around 6.2% right now. You're in the "C" paper range and funds will cost you at least twice that IF you can find a lender at all.

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  • 1 decade ago

    If the lenders are turning you away, maybe the thing to do right now is to work on improving your credit score.

    Get a copy of your credit report from all three major agencies and go through it carefully and correct any errors.

    Start paying off your credit accounts on time and in full, if possible, BUT DON"T CLOSE THEM. And don't open any new ones.

    Check out this website for more information, including how to get your free credit reports:

    http://www.ftc.gov/bcp/conline/pubs/credit/freerep...

    Good luck and best wishes.

  • 1 decade ago

    To make it short and sweet, you can't. With your credit score, chances of obtaining a mortgage are close to zero, since the current cut off score considered acceptable for a mortgage of the type you want is about 625.

  • godged
    Lv 7
    1 decade ago

    You don't want to pursue this. If you find a lender that will do this, the terms will be crap and certainly create more financial problems for you.

    Work on your credit, once you are in the mid-600's you will be in a much better position to buy.

    Source(s): Oregon Realtor
  • 1 decade ago

    No bank on earth will give you 100% financing right now with those scores.

    Your only option is to get the seller to put you on a contract for deed for a couple years, or find a co-signor.

    Source(s): 10 years in mortgage banking
  • 1 decade ago

    You may try FHA, you will need 3% for somewhere, it can be a gift.

    FHA is not credit score driven, but you credit must qualify.

  • 1 decade ago

    FHA does loans for credit scores of 500 and up.

    Source(s): Mortgage Questions? Email me at scornwell@newworldfederal.com
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