Does anyone have any experience with a non-traditional home loan?

My fiancee' and I are wanting to purchase a home, but have no credit. A loan officer seems pretty confident we may qualify for a non traditional loan, we have to give him records of bill payments, etc. I was just wondering if anyone had this type of loan and what were your personal pros and cons? Also any information from personal experience with the new $8,000 first-time home buyers credit would be greatly appreciated, thanks.

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  • 1 decade ago
    Best Answer

    You will get the tax credit for $8,000 if the house is $80,000 or more.

    The non-traditional loan means that it will be more expensive. But if you make 12 on-time payments, you will be able to refinance into a traditional 30 year loan..

  • 1 decade ago

    The non-traditional home loans are the subprime loans that did get the country into the real estate mess it is in today. Also you will probably end up with an adjustable rate mortgage which is to be avoided at all costs - starts out as a nice low payment and them BAM it resets to a huge monthly payment. You are better off waiting building your credit a bit then using your states 1st time home buyer program which provides low interest rates low down payments

  • Anonymous
    1 decade ago

    Stay away from variable rates or ARMS

    Stay away from 3 or 5 year variable fixed.

    If it has the word variable don't do it.

    Interest rates are about to go through the roof in a couple of years.

    Your interest payment could double.

    That's what has caused this housing mess.

    Stick to 15 or 30 year fixed.

    /

  • Anonymous
    1 decade ago

    what exactly is he proposing?

    I can't imagine anyone approving a loan for a house without good credit score and 2+ yrs of good credit history, low debts and steady income/jobs - plus 10%+ cash up front for down payment and closing costs

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  • 1 decade ago

    Yeah, I think we're all experiencing them as the country is going down the tubes.

  • 1 decade ago

    umm

    Source(s): this is what got us into the recession in the first place!
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