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I am trying to buy a house. The price they are asking is 25,000 due to the fact the house needs cosmetic work. My husband is a carpenter and so we would really like to buy it. The problem...our credit is toast. I have 10,000 I can put down but I don't know how to go about convincing the bank to loan us the extra 15,000. Anyone have suggestions on how to approach this? What would be my best coarse of action? Any information would be great. Thanks.
Have either of you tried a first-time home buyers loan? Most banks issue these to people who have fair or poor credit...if neither of you has already taken one of these out before. If a place sees that you have more than a quarter of the cost in a down-payment, someone more than likely would do this for you. good luck!
but I don't know how to go about convincing the bank to loan us the extra 15,000.
Hello katty:
You're not going to find a bank that will loan you the money. But you can find some money on the secondary market. Look in your newspaper under loans. You'll find just what you need. Course, it's gonna cost you a bundle.
You're not going to find a bank that will loan you the money. But you can find some money on the secondary market. Look in your newspaper under loans. You'll find just what you need. Course, it's gonna cost you a bundle.
excon
Not exactly true. She nearly has 50% down, so that is good in the eye of the bank, equity means less of a chance of walking away...
You can get a FHA loan that will not require a credit check...There are other options as well, but I know for a fact that the FHA will work. We have decent credit, but it had some flaws, and we got the lowest rate available on our 127,000 loan, there was NO credit check. You can also look for a lender that does manual underwriting. good luck
I would see what options there are about using some money for improvements to the house. although, if you have to borrow double what the house is worth it will be a risk, you are going in upside down....but it could be very very beneficial when you go to sell the house if you make the right updates. You could come out way ahead.
With all due repect, ALL FHA loans require a credit report on the borrower. First time buyer programs provide down payment assistance, and perhaps a below market interest rate, but the borrower must still have satifactory credit. FHA is somewhat more lenient on credit than FNMA/FHLMC, but it still needs to be acceptable. Most mortgage lenders have minimum loan amount limits, which are well above $15,000. You might try to get a Purchase Money Home Equity Line Of Credit from your bank or Credit Union. Depending how bad your credit is, a 60% Loan To Value should provide good security. If that fails, you could try to find a private investor who would loan you the money at a high rate. If you have Judgements and/or Tax Liens, that fact could keep you from getting a loan because they could impair the first lien position of the mortgage.
Really?? when we got our loan, I was told there was no credit check, they looked at other factors besides the expirian/other credit ratings...like our utility bills and so forth.
Most likely, when you got your FHA loan, you did not have much of a credit history, and perhaps no credit scores. The lender did pull a tri-merged credit report on you. You can confirm this by going to www.annualcreditreport.com/cra/index.jsp and getting a free report. You will find that there was an inquiry by the company that your lender uses for reports. FHA allowed "alternative" credit, such as rent history and utility payments to prove your credit worthiness. FHA and VA are more conducive to alternative credit than Conventional.
no no...we have quite a credit history...lol...i guess it just wasnt as bad as we thought. i have already used my free credit check for the year...LOL...
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