Trying to buy a home w/bad credit?

I am in Michigan, we are 2nd in the US in forclosures, I have a 610 mid score with a not so good credit history. I have found a home that I love but can't get financed for it without at least 10% down. I don't have that much and don't have anyone to co-sign for me. A few years ago, I was told I needed a 550, then last year a 600, I've surpassed both and still can't get a home eventhough there is one for sell on just about every block. Any ideas on where I can get a zero down approval for a $100,000 home with a mid score of 610?


Thanks all who've responded. I've tried FHA and there response was the one of two things remaining on my credit needed to be paid on for 6months before they would approve. I've considered doing a personal loan for the down payment, but I don't have any collateral to stand on. The home has equity in it and will most likely be worth at least 50thousand more than what their asking in a year or so. The home is currently bank owned. Has anyone heard of a lease with guarantee to buy? I wanted to try that as a possible option.

8 Answers

  • Anonymous
    1 decade ago
    Favorite Answer

    Don't lose hope if you're looking to buy a home. There are so many different ways to fund a home now, just about anyone with any kind of credit can get into a home, regardless of credit situation.

    Of course, some will cost you more money in the long run, but a home it's still one of the best investments that you can make, so, in many cases, it's worth it, especially for the first year of ownership.

    You should shop around, and ask different lenders what kind of programs they have, and if they can help. Try to find a lender that specializes in bad credit mortgages. You can find some bad credit mortgage lenders listed on this page on and off:

  • Anonymous
    1 decade ago

    I'm sorry but that will be incredibly difficult. Lenders are getting much more strict with their guidelines which is why a 610 may have been acceptable a year ago, but today lenders want at least a 660 and 100% financing is almost impossible to get even for people with good credit. Try a mortgage broker, but I'll warn you, even if they can find a subprime loan for you the interest will probably be so high that you may not be able to afford the payment.

    Source(s): mortgage broker
  • Anonymous
    1 decade ago

    Home loans are now available to many people for whom they would have been out of the question just a few years ago. You’d be in much better shape to bargain for better interest rates if you had a more impressive credit history, but if the house you want is the deal you<!--believe it to be, a bad credit home loan can still work to your advantage.Your best bet in assuming a bad credit home loan is to pay as much cash up front as possible, and see if by doing so you can negotiate a lower interest rate.

    You’ll save enough money over the term of the loan to compensate for the sacrifices you had to make in handing over the down payment.

    The bad credit home loan can be a win-win proposition for both lenders and borrowers; the lenders, thanks to the higher-->interest rates, get bigger returns on the money loaned, and the borrowers get a homes in which to build equity, and chances to restore their credit records so that the first bad credit home loans they take will also be the last!

  • Shane
    Lv 4
    4 years ago

    You are serious? Sorry, but it isn't going to happen unless the owner is willing and able to carry the loan. Work on getting your credit repaired, then try again after a couple years. And by the way, you'll most likely need more than that for a down payment even with decent credit.

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  • 1 decade ago

    Try going to a bank and see if you can get approved for an FHA loan. If that doesn't work, have your loan officer call (credit bureau) and see if they can do what's called a rapid rescore. You may be able to clean up some of the problems on your credit report and get a higher score to help you qualify for an FHA or Conventional loan.

    There are costs associated with this! In WA it's $30.00 per tradeline per bureau. For example if you have 2 items on your credit report that can be cleaned up and removed, if they have been reported to all 3 bureaus then it would be $180.00 to get them cleared off! I hope this helps!

  • 1 decade ago

    Look for a private seller who is willing to hold the mortgage for a while, until you can obtain financing.

  • Anonymous
    1 decade ago

    yes you need to apply for FHA financing..and use a lender who does MANUAL underwriting.....they require 2.25% down....and 10% will make it better!!!

  • 1 decade ago

    you need to go to a mortgage broker, they have more options for you

    Source(s): I am in Georgia as a loan officer and i MIGHT have someone that can help you.
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