srs5225 asked in Business & FinanceCredit · 1 decade ago

Can I reasonably expect to find home loan financing under the following circumstances?

Can I reasonably expect to find home loan financing if my wife and I combined make $80,000 to $100,000 per year, both have credit scores in the high 500's to low 600's, have a four year old bankruptcy, some late revolving account payments, but several perfect on-time history for installment accounts (auto loans). Oh and with no down payment? I'd like to take advantage of the government rebate for first time home buyers, but with the credit market these days, I'm not sure if it's an option. Anyone in the industry have an idea? Thanks.

Update:

I do live in an area where I can get a USDA rural development loan, but don't I make too much money for USDA and FHA loans?

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  • 1 decade ago
    Favorite Answer

    Yes, it is possible, depending on where you live and what first-time home buyer programs are available in your area. With a credit score of 620, you can qualify for FHA financing. For mortgage purposes, your credit score is the lowest middle score of both borrowers.

    FHA has a minimum down payment of 3.5% of the purchase price. If you are in an area that has down payment assistance programs, you may be able to obtain 100% financing.

    The last piece of the puzzle is that your income must be enough to cover the new housing payments and your current monthly debt at a debt-to-income ratio that meets loan guidelines.

    Also, a program called USDA Rural Home financing is a 100% loan program. Rural does not mean the property has to be out in the boonies. Different counties and cities are eligible and then there is a link to a website where individual addresses can be checked.

    Source(s): Go to www.hud.gov for information on FHA financing, and http://eligibility.sc.egov.usda.gov/eligibility/we... to find out about the USDA program. There is also a lot of information on my website, www.theloanlady.net.
  • Anonymous
    1 decade ago

    With a previous bankruptcy, missed payments, a low credit score, and no down payment, it is unlikely that you would get a mortgage. Once a lender sees the bankruptcy on your credit report, they are then looking to see if you have changed your financial habits.

  • Anonymous
    1 decade ago

    No way. Bad credit loans are a thing of the past as are no money down loans.

  • 1 decade ago

    F.H.A. is going to be your best bet but as I understand their cutoff as far as scores go is 620 and the no down payment thing will never fly.

    I would suggest you talk to a real estate agent and see if they can come up with some other options.

    Good luck.

    Source(s): Finance Manager for over 9-years / 3 time home owner.
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