is it possible to buy a house with bad credit?
Sell and Rent Back
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December 16th, 2009 at 9:08 am
it is possible but very very rare and you will probably get extreme high interest and a bad house (cheap)
December 17th, 2009 at 10:09 am
yup, go to the bank or a real estate agent and look at all the forclosed homes.
December 19th, 2009 at 10:17 pm
Yes. But I would not advise it.
December 22nd, 2009 at 3:20 am
Yes they can. In 1990′s under Clinton’s administration bills were passed in order to allow loans for homes to people who had bad credit, no credit and really didn’t have the money for it, thus high risk borrowers. This was done under the democratic party in order to help people out and thus why the economy is in this mess!
December 23rd, 2009 at 2:20 pm
“Put your fears aside. Just because you have bad credit, filed bankruptcy or gone through a foreclosure does not mean you cannot buy a home. You most certainly can buy a home with bad credit. But you’re going to pay more than a borrower who has sparkling credit.”
I didn’t say this, by the way, so I’m not taking any credit!
Go to to find where I copied this down.
But even though you can buy a house with bad credit, you will definitely have some downpayment. That’s guaranteed. Sorry.
December 23rd, 2009 at 4:04 pm
I doubt it, unless it’s a predatory lender doing something shady. I’ll explain why below.
Real, reputable lenders calculate the maximum amount they will lend by adding up (mortgage principal + mortgage interest + HOA fees if applicable + tax amortized over 12 months) and seeing if that is more than some percentage of your pre-tax income with debt taken out of it. That percentage is usually 50% but would be lower if you are riskier.
Also, the worse the loan-to-value ratio (meaning the smaller the down payment), the higher the mortgage rates will be. The higher the mortgage rate, the bigger the salary you need to have in order to be eligible for the mortgage.
December 25th, 2009 at 12:06 pm
Yes… but you may not be able to get a loan depending on how bad your credit is. FHA makes loans to people with less than perfect credit and has low down payment (3%) requirements. You will have to be able to prove that you can afford the home you buy unlike the loan programs of past.
Another alternative if you can’t qualify for an FHA loan is buying a home and taking over the current loan. This can be done using an All Inclusive Trust Deed (AITD) or Land Trust. This can get pretty complicated so you’ll want to work with someone who knows what they’re doing. You will need to have some money to put down.
Visit my website and drop me a line if you’d like more information. I’m in CA but can put you in touch with someone that can help you in your area.
December 28th, 2009 at 9:38 pm
Yes it’s possible that you can buy a house on bad credit with little or no money down, but you need to be very care-full with that. you still need to do your research too and make sure that you are not been taken for a ride.
When some finance company seen your credit they might give you a very high interest on the lone if they do give you one. If you are going to use the house as your primary resident please make sure that you have enough resource to cover the up keep of the house such as the mortgage, light, gas…..,etc.
Now if you are going to flip it you don’t have to worry that much just make sure that you have money to cover the mortgage if you don’t get it sell right away cause you don’t want that to go on your credit also.
December 29th, 2009 at 7:30 am
creditreport.imess.net – try this service to boost you credit score before getting loan. After credit repair you can get the loan with minimal interest rate.