What is a good way to get a mortgage loan for a first time home buyer with bad credit?

9 Comments

1. pete h says:

   January 31, 2010 at 3:12 am

   Best advice I can give you: shop around. There are a lot of lenders out there, just spend a day calling them and explaining your situation. If they can’t help you, a lot of them will be able to refer you to someone who can.

   Oh and If you can save up a good down payment, that will help out a lot.
2. american_badass_25414 says:

   January 31, 2010 at 9:44 pm

   contact the Fannie Mae foundation or check your yellow pages for mortgage brokers.
3. lendermark1 says:

   February 2, 2010 at 3:10 pm

   Do you know what your credit scores are?
4. mazziatplay says:

   February 2, 2010 at 11:20 pm

   There may be financing for you but a lot will depend on just how low your credit score is and how much money you have to put down.

   Mortgage lending decisions are based upon “perceived risk”. Most lenders use an automated underwriting system developed by either FNMA (Fannie Mae) or FHLMC (Freddie mac). These systems are score driven and make it difficult to get approval on a low down payment loan with low credit scores.

   If your score is below 600, you may need to use a sub-prime lender. Traditionally, their rates are much higher and may have pre-payment penalties on the loans which tie you to that loan for a 2 – 3 year period.

   Congratulations for taking the first step and paying off all of the delinquent loans. You are on the road to good credit again. Each month your credit score will improve now as long as you keep making your payments on time.

   My best recommendation to you is to start putting away as much money a month as possible. The more money you can put down as a down payment, the more favorable loan you will qualify for. If you can delay your purchase for a year, you may well be able to qualify for “A” level financing. A year isn’t a long time and now you have a goal to work towards.

   Good luck.
5. indsmaz says:

   February 6, 2010 at 8:57 am

   There are government and non-profit agancies that can help with these matters. Google some key terms such as “low income housing.” Be creative with what you type in for keywords and im sure that you will find something. Good luck!
6. JENNLUPE says:

   February 8, 2010 at 6:30 am

   Try Wells Fargo Bank. Many options easy to work with.
7. shot0521 says:

   February 10, 2010 at 1:27 am

   First of all, how low is your credit score? It is relatively easy to raise it over 6 months, depending on what your “bad” issues were. You can look at any of the three credit bureaus websites for that advice (Experian, Equifax or Transunion). Also, shop around and ask. Do you have other business with any financial institutions? You might want to start there. Also, there are a lot of lenders who will take on your mortgage with an extremely high finance rate, so be careful of them!
8. pseudo says:

   February 12, 2010 at 3:30 pm

   For info try

   Also try a search for your state housing finance agency or state housing development authority. They have assistance programs for first-time homebuyers.

   Sometimes the recent payoff of debt can keep your score low because there is recent activity on delinquent accounts. If you can wait 3-6 months your scores may improve significantly. When you talk to a lender, bring a copy of the most recent credit report you have. The lender should be able to let you know if you can qualify now, or should wait for your scores to improve.
9. ryansdad20042000 says:

   February 15, 2010 at 3:18 am

   The only suggestion I can give is to check with HUD-VA, there are a lot of programs available for first time buyers. If the problem can be that you are located in area that FEMA has total control. It maybe possible that your location can not be solved through conventional land records.