How can I buy a home with bad credit & no down payment?

I live in San Antonio TX. My fiance and I don't have good credit and we are looking for a decent home. We don't have much to put down. We are living in an apt right now and we are paying close to 1000. But I want a house now, renting is just throwing away money!! HELP!! We are getting married March 2010 so I would like to close on the house before. Thanks in advance

10 Answers

  • a_mom
    Lv 4
    1 decade ago
    Best Answer

    You will need to improve your credit. Pay off debt, do what it takes to get your score up. Get some money to put down. Start saving up for a larger down payment. Then look for the short sales in your area, you'll have a smaller payment and the mortgage company will be more willing to finance. Patience is the key right now.

  • 4 years ago

    You should go talk to a loan broker rather then a bank - they can usually work around credit problems. You can probably do an FHA loan (they usually don't require super high credit scores) and ask your seller to pay closing costs or down payment assistance. FHA usually requires some money down but there are programs where the seller can help you. Considering the real estate market a lot of sellers are ready to sell and most would be willing to help with closing costs. You should find a realtor and see if they have any contacts in the lending business as most do. Just be careful - if you are having problems paying rent remember that mortgages are more set in stone then rent and harder to get out of if you have a problem with finances. And don't try to apply for credit cards or anything of the sort, it does ding your credit. Good Luck to you

  • sean C
    Lv 4
    1 decade ago

    Find a private seller and offer a generous down payment. Look for owner financing. Work out an arrangement to rent to own for six months (to show that you will keep up the payments). Just make sure the house is worth buying.

  • Penny
    Lv 6
    1 decade ago

    Depends on what your looking for. If (lets just say) your looking for a house priced at $300K. Well you will need a 10% deposit.

    So you will need $30K saved up even BEFORE the bank will look at you. Even after that you will need to underline what you earn with your partner as a joint account.

    You can do easy Loan calculators on most Bank web pages. There are free to use and give you a ruff idea on what your looking at.

    But best option would be to contact a Finance Broker. They will give you results within 24 hours of calling them.

    Good luck :)

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  • Judy
    Lv 7
    1 decade ago

    Not a chance. The only way you could by a house under those circumstances is to pay cash. Even with GOOD credit you'd need a down payment.

    Take a couple years, get your credit score up to something reasonable, and save up a healthy down payment.

    "But I want a ..... now" is most likely what got you into the situation you are in.

  • Anonymous
    1 decade ago

    Unless you have a decent amount to put down, I don't think you would be able to anytime soon, especially with bad credit! I would talk to a loan advisor at the bank and see what your options are - make a plan long term to start saving as much as possible for a down payment

  • Anonymous
    1 decade ago

    You may be able to get a USDA loan with no money down but you need a 620 mid score.

    Source(s): I'm a mortgage banker/broker
  • 1 decade ago

    I'd say, given your situation, that's it's almost impossible right now for you to get a loan. If you can find someone with good credit to co-sign your loan, you might want to try that avenue.

  • 1 decade ago

    not to insult but to make a point...............

    ppl want to blame the bankers for the recession

    but its also the ppl that dont know what theyre getting themselves into... i

    if you have nothing saved up and have bad credit..... it shows youre not in a position to buy a home

    you need at least 5% down for 1st time home buyers

    and never buy a home thats more then 3xs your annual salary but since aprs are down to 4.5 % you may push it to 4-5xs your annual salary............ BIGGEST ADVICE SAVE!!!!!!!

  • Anonymous
    1 decade ago

    "Halp i can't afford house but I want one, wat will i do?"

    As Suze Orman would say: "Denied!"

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