How to buy a home with bad credit and no down payment.?

I have been wanting to buy a home for so long but I have bad credit. It's not horrible, I have 3 small delinquencies on there but nothing good to make my score go up. And my husbands credit is horrible and he filed bakruptcy years ago and is currently unemployed. I've had a steady job as a school secretary for almost 3 years and always pay my rent on time. The money that goes towards my rent could definitely be enough for a mortgage payment. But, since my husband isn't working, my checks go to all the bills and we haven't been able to save anything...nothing! In the area I live in, Metro Detroit Michigan, homes are sooooo cheap and now's the time to buy a home. I could definitely afford the mortgage and it sucks not having good credit or any money down. Is there anything I can do?

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  • 8 years ago
    Best Answer

    There are several things you would be able to do. Contact your local mortgage lender that is authorized to do FHA mortgage loans. Based on your credit score that would be obtained by your mortgage loan officer, you might qualify for a 1% down mortgage.

    You must apply for a mortgage loan to find out your status.

    I am concerned about your ability to repay this mortgage loan. Mortgage lenders use a formula that take in consideration your current income, and your debts which would come up with a ratio. Your ratio would be between 33% and 38%. There might be variations of this ratio, however this it the range.

    Since you have indicated you normally have little if anything left after paying your debts and rent, this might place in a position where yo would exceed the debt ratio.

    If you are able to get by the ratio problem as I see it then you might be able to obtain a FHA mortgage loan. The down payment might not be much of a problem as the lender would be able to find a mortgage lender that would grant you about 2-3% of the down payment. You would be able to obtain the rest from friends and neighbors.

    You might consider checking the internet sites "For Sale By Owner" or "Owner Will Carry". You should follow with the city in which you reside or want to purchase a house in. At times these sellers might consider acting as the bank and selling you their house with you paying them as you would pay a mortgage lender or bank.

    There are other private seller (Investors)located in Detroit that might work with you in getting you in to a house. Check the local papers, look for ads that say little or no down, owner will carry, Lease/rent option.

    Make sure you read all documents you might be required to sign. Take them home with you, read them twice. Ask questions about items you have no idea what they mean.

    I hope this has been of some benefit to you, good luck.

    'FIGHT ON"

  • Hugh
    Lv 6
    3 years ago

    For Finance and credit solutions I visit this website where you can find all the solutions. http://INSURANCEANDFINANCETIPS.INFO/index.html?src...

    RE :How to buy a home with bad credit and no down payment.?

    I have been wanting to buy a home for so long but I have bad credit. It's not horrible, I have 3 small delinquencies on there but nothing good to make my score go up. And my husbands credit is horrible and he filed bakruptcy years ago and is currently unemployed. I've had a steady job as a school secretary for almost 3 years and always pay my rent on time. The money that goes towards my rent could definitely be enough for a mortgage payment. But, since my husband isn't working, my checks go to all the bills and we haven't been able to save anything...nothing! In the area I live in, Metro Detroit Michigan, homes are sooooo cheap and now's the time to buy a home. I could definitely afford the mortgage and it sucks not having good credit or any money down. Is there anything I can do?

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    Source(s): For Finance and credit solutions I visit this website where you can find all the solutions. http://INSURANCEANDFINANCETIPS.INFO/index.html?src...
  • 3 years ago

    2

    Source(s): Rent To Own House - http://RentToOwn.trustdd.com/?klla
  • Anonymous
    5 years ago

    In the current mortgage and home loan market your best choice is https://tr.im/IF4bf the reason I say this is because things are always changing. After the 2008 real estate meltdown. Mortgage underwriting rules have been changing and they continue to make small changes all the time. It doesn't matter if you're looking for a mortgage with perfect credit and 20% down; or bad credit with low down payment; or even almost no money down type mortgage. Its going to be impossible to answer your question.

    My recommendation is grab a quote from my previously mentioned place. You'll be able to see different mortgage programs and rates available to your personal financial profile. New home loan, mortgage refinance, equity lines of credit its all there. No matter the credit or down payment amount. Just let them know what you got and see whats possible from multiple top mortgage providers in the industry today.

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  • 5 years ago

    If you want to buy a home with bad credit and no down payment check out this site before doing anything:

    http://badcreditloansway.net/NoDownpayment

    If you have been wanting to buy a home for so long but have bad credit you can find loans that line up with your criteria quickly and easily.

    Have a look and you will find everything you need.

    Jere

  • Anonymous
    6 years ago

    For a person like you, there’s nothing more to learn other than the fact that bad credit mortgages can save you in spite of your poor credit score. They’re also known by names such as adverse and sub-prime credit mortgages. They don’t differ much from the standard types of mortgages. The difference includes the fact that they can only be taken advantage of by people who wouldn’t manage to pass a credit check by a standard lender. The only thing that’s going to pinch you about bad credit mortgages is the high interest rates they come with. This is the only price you pay for being a risky candidate.

    Your search for a reliable bad credit mortgage lender could become easier if you keep the following things in mind. Make sure you have the proper answer to the question ‘how much can I borrow for a mortgage?’ before you think of taking up another loan.

  • There are no 0% down mortgages any more unless you qualify for a VA loan.

    If your credit score is at least 620 you may qualify for an FHA loan if your debt to income ratio is within limits (27% for housing and 35% total debt) and you don't have any recent bankruptcies or judgments. The minimum down payment required is 3%. With normal closing costs you will need between 5% and 6% in seasoned cash to close at the very least.

  • Anonymous
    5 years ago

    It is July 21, 2014, and I have 3 current clients who are in escrow with a USDA loan.

    A USDA loan is a no money down loan, and you do not have to be a first time homebuyer to qualify. It all comes down to the location of the property you are trying to purchase, as well as your income.

    There are also several grant programs out there that I try to find for my clients, if you can qualify, a lot of them can get you into a house with no money down, and it doesn't need to be in a rural area.

    I also have one client that just purchased a home for $155,000. She didn't qualify for a USDA loan because of the location, but my loan officer was able to qualify her with what he calls the "first down program". Where her down payment was 1/2%. It was $750 for her down payment.

    If credit score is what you are worried about, I also work with a lender who can qualify you with a 580 credit score.

    Source(s): www.denverslist.com
  • 8 years ago

    Do you realize that living in a hone is going to cost you a lot more than an apt? Not just the mortgage but utilities, insurance, home maintenance? I don't think you will find anyone to write you a mortgage. You have to pay off the old bills and your husband needs steady employment. No one will write a home loan with no money down.

  • 8 years ago

    0% down days are long, long gone.

    Thank goodness...

    A lender will require that collection items on your credit reports be paid off.

    When buying a home, you should also have some emergency living expenses set aside.

    You will also have to pay closing costs on a home.

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