anyone with not so good credit

hi!

well i have not so good credit. when i turned 18 i went nuts and i had no means of a good job....well it was a mess..but all is paid off now...now that i have a good job and it has been like that for a year. I just recently got a car loan (it was hard to get but i got one) I just got another creditcard finally....the FH credit is ok.....

is this going to ruin my chances of getting a house?????

i am soo nervous

Have you run it? How bad is bad? Call a broker or banker and they'll talk to you about your options.

BTW I thought mine was worse than it is!

o no it is like in the low 600's as far as a rating...not good....no car place woud give me a loan..but i did get one from my own bank after alot of negotiating..but hopefully lenders will be in good faith to see how the past 2 years i have a steady job and everything is paid in full on time

just scary...i wish i could go back in time

First of all, I'm sure you can be approved, BUT you will pay a high interest rate for sure. And if your husband tried to take out a mortgage in his name alone, if his income isn't that high by himself, they will charge a higher interest also.

Now are you okay with your name not being on the mortgage, but your name being put on the deed? You would still be deemed as co-owner of the property. Anyway, if this is okay, try Wells Fargo for a mortgage. I went through them, and they have a mortgage express program for a person taking a mortgage out on one income where they can still get a rate like anyone else. I got 5.85% interest rate last week but opted to pay 3/8 of a point to get 5.75%. You might want to look into it. Or at least give them a call, it can't hurt. I had to get the mortgage in my name alone because if I had my husband taken into consideration with his awful credit, I wouldn't have gotten a rate that was affordable for us.

If you can't even get a car loan... a mortgage is going to be very difficult if not next to impossible.

Frankly... you will be better off doing the mortgage completely in your FHs name and hope he can prequal for enough to buy a house.

Your other option is to simply wait. You say you just got a car loan? Make your payments on that every month... and by the time thats done with your score will be higher. Then look for a home at that time.


Here is a story I pulled from another form. Very good read.

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There are many lenders who will offer a subprime loan with very high interest. I started with a score of 550, put $42k down on a $173k house, got 12.9% interest rate and prepay penalty of $17k. Waited until the three years was up so no more penalty, then refinanced at 8% when my score went up. I will refi again in a couple of months. I was also able to get a $30K HELOC in the middle of all of this which(along with a good payment history) has helped raise my credit score more.Lucky for me, the house appraised at $212k, so I had the equity for the HELOC.

If you have bad credit, you'll have to search harder and will pay more and longer, but you can eventually get to where everyone else is- I'm almost there.

Lenders who have been thrilled to loan me money at exhorbitant rates: Argent,
Washington Mutual, Countrywide, Ameriquest,Household.

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Posted by myasmom

We did a no doc and got a 5.99 witht he option of paying 1 point.

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Yeah but don't they still do a credit check with a no-doc loan?

I thought the no-doc loan... they just don't check your income. But I believe they still run credit.... no?

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Posted by DjPiLL

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Posted by myasmom

We did a no doc and got a 5.99 witht he option of paying 1 point.

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Yeah but don't they still do a credit check with a no-doc loan?

I thought the no-doc loan... they just don't check your income. But I believe they still run credit.... no?

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We just used a low doc (is that different from no doc?) there has to be some kind of documentation right?) loan for a rental property, my soc. sec. number and credit score were in all of the closing papers.

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Posted by myasmom

yeah they do require credit score but they can 'state' your income to compensate :)

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Yeah thats what I figured. No-Doc loans are great for people with a lot of off the books income... or people that have a fluctuating income (business owners, consultants, etc).

But the original poster said she has bad credit. A no-doc loan will not help her because she probably has a good job she is willing to document.

Its the credit score that cannot be hidden (in any circumstance).

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Posted by DjPiLL

If you can't even get a car loan... a mortgage is going to be very difficult if not next to impossible.

Frankly... you will be better off doing the mortgage completely in your FHs name and hope he can prequal for enough to buy a house.

Your other option is to simply wait. You say you just got a car loan? Make your payments on that every month... and by the time thats done with your score will be higher. Then look for a home at that time.


Here is a story I pulled from another form. Very good read.

---

There are many lenders who will offer a subprime loan with very high interest. I started with a score of 550, put $42k down on a $173k house, got 12.9% interest rate and prepay penalty of $17k. Waited until the three years was up so no more penalty, then refinanced at 8% when my score went up. I will refi again in a couple of months. I was also able to get a $30K HELOC in the middle of all of this which(along with a good payment history) has helped raise my credit score more.Lucky for me, the house appraised at $212k, so I had the equity for the HELOC.

If you have bad credit, you'll have to search harder and will pay more and longer, but you can eventually get to where everyone else is- I'm almost there.

Lenders who have been thrilled to loan me money at exhorbitant rates: Argent,
Washington Mutual, Countrywide, Ameriquest,Household.

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no i did get a car loan but it was hard...but my bank did approve me.

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Posted by dbleplay17

i am hoping my income is what saves me....it is substancially different now...plus since i have been at this job for 3 yrs now my bills are always paid along with my car loan every month.

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If you can't get a mortgage for under 7%... then its simply not worth it to buy right now.

Wait it out. Pay your car loan every month. By the time its paid off... your score should increase and you will then be eligable for better rates.

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Posted by DjPiLL

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Posted by dbleplay17

i am hoping my income is what saves me....it is substancially different now...plus since i have been at this job for 3 yrs now my bills are always paid along with my car loan every month.

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If you can't get a mortgage for under 7%... then its simply not worth it to buy right now.

Wait it out. Pay your car loan every month. By the time its paid off... your score should increase and you will then be eligable for better rates.

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She could get the mortgage and then refinance if your credit is getting better. This refinance option is only good of course if the interest rate is lower and worth it with all closing costs in.

i didnt read the whole thread but you can have a large sum of debt but if you make your payments on time every time, every bill, you will have a avg or above average credit.

debt to income ration is a factor also...once you start planning for house/condo/co-op, start to be more froogle with your money and spend a little more to pay off other bills to lower them.

we are both where you are...in the mid 600's which is average believe it or not. We got our house pretty easily. We paid off ALOT of debt with some money from a lawsuit. Refinanced our one car loan which made it go from 18% down to like 10% I think.

There are options for first time home buyers and plenty of programs for military people, teachers, etc. You just need the right broker to work with you.

AS long as you MAKE YOUR PAYMENTS your credit will improve. I closed a bunch of accounts I wasn't using. I only have student loans now (which my dad pays, and is late on!)

DH has the car in his name only.

I completely ruined my credit...but a friend of mine taught me a little trick. It worked on some creditors not all, and my score went up. Get a copy of your credit report from all three bureaus. Dispute the really bad ones, like late payments, etc. Supposedly, the bureaus have 30 days to fix it/investigate otherwise it has to be turned to positive and its nor possible for them to get to all of your disputes, so they have no choice. I did it, and it worked on some of them, not all. You just have to keep trying. I got some of the nightmares changed to paid/never late. And some things came off all together. I KNOW it sounds crazy...and i felt guilty doing it, but hey- it worked. They keep mailing me credit cards now (I know better then to open them now though). I got a list of some of the excuses you can use from creditfix 411 (i think thats what its called). I have to look for the notes she gave me on it.

Good luck!