How can a person with horrible credit and little money down purchase a home with so many homes in distress?
I live in the Washington, DC area and I want to purchase a home since there are so many homes in foreclosure now and the prices are becoming affordable for someone with a single income like myself. How can I purchase with little money down and horrible credit after losing a home to foreclosure myself two years ago?
- 1 decade agoFavorite Answer
If you lost a home to foreclosure two years ago, you might not be able to do this in a conventional way.
If you're looking for investment property to flip, try hard money lenders. They lend on the value of the house and generally not more than 70% of the ARV (After Repair Value), however, the HML (Hard Money Lender) will decide what the ARV is. DO NOT DO THIS IF YOU ARE GOING TO LIVE IN THE HOME! The interest rate is crazy high and the note is usually called due in a few months.
If you want to buy as an OO (Owner Occupied) home, try any government grants/loan programs you can find. If you can qualify for VA, FHA, or other government loans / government secured loans (which I doubt with a 2 year old foreclosure) that would be the best route. Most likely, no conventional lenders will loan you anything even if you made a large down payment.
Another thing you can do is take over payments from someone in trouble or moving. Since selling a house is difficult (because so many are available and financing is hard to find) put ads on CL, Backpage, in the local paper, etc. and take over someone's payments. You'll have to do some research on this because most mortgages are non-transferable. Look for "Real Estate Trusts" and you'll find out how to do it where the mortgage company can't stop you from taking over the payments.
I would recommend with a recent foreclosure that you take the last option and try to take over someone's payments through a land trust.Source(s): Experience.
- estielmoLv 71 decade ago
If the loss of the home was your one and only black mark there may be a chance for you.
- ?Lv 71 decade ago
You can't. No mortgage lender will help you
- Anonymous1 decade ago
you can't. Your mistakes have come home to roost.
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- PengyLv 71 decade ago
Truth is you cannot