How can you buy a home with poor credit at 200,000 with a reasonable monthly payment?
Answer:
check the millions of mortgage companies. they are so desperate to sign people up that you can probably make a deal.
Talk to a realtor
There are many programs out there for people that have less than perfect credit. Also there are loans that will give you a lower pmnt untill you can repair your credit and get a better rate. If your credit is 600 or better there are programs with us that will offer you a great rate. Feel free to contact me @ karrie_ramel@countrywide.com I would be happy to help you in buying your home. Everyone deserves to live in a good neighbor hood.
There are many loans available, not all are good loans. You need to find a trusted advisor who will help you develop a strategy that not only is best for you, but will work for you and build your networth, rather than the loan officer's. This site has many free reports that may most likely answer most of your questions -- www.paynotaxesforlife
Do you happen to know what your middle credit score is? Have your pulled your credit, or have had someone pull it to see what your score's are - or what is on your credit report? I have pulled credit on ppl, that thought they had poor credit - and they had a middle credit score of 580 (which is workable, with many lenders to get 100 percent financing). The rates tend to be lighly higher, but it does get you into your home.
Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.
Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out.
There are other factors to consider, besides credit. Medical Bills are Over looked buy underwriting (since medical is a unforseen event), where as credit cards, are looked at (since you purchased items on a credit card.) Also, Job time of 2 years, Rental history for 2 years is looked at. What collections & judgements are on your credit report. Some collections may not have to be paid off. Judgements may need to be paid off - depends on the Lender and Their Underwriter. All of these are taken in as a factor on getting a home loan. Credit can be worked on, by adding alternative credit. If you are paying regularly on a cell phone, auto insurance, rent, etc - these are called alternative credit.. All is not HOPELESS - ok - take a deep breath. If your credit score is 500 or higher, anything is workable, with a seller second - etc the higher the credit score the better. Lenders look at the middle score.of the 3 scores. If you only have 1 score or 2 scores (have seen it), it is still workable..but unless a lender sees the whole picture - credit - income - job time, etc - than you will not have a "true" picture of what you can afford - Hope this helps - There are also Government programs out there, but they too are looking for job time, etc.
Go to these websites
http://www.nehemiahcorp.org
http://www.fanniemaefoundation.org/..
http://www.fha-home-loans.com/
http://www.freddiemac.com/
if your credit is poor- you will pay higher interest rate, so if now you can't afford to buy a house in decent area- try to work on your credit, but keep looking, sometimes you can find something you will not dream of finding.
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