Profile picture for user6138367

Can a person, with little or no money down, with bad credit, still purchase a home?

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 04 2013 - Pioneer
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (10)

I would recommend a rent-to-purchase where you can rent the home and then purchase once your credit is better.  The problem is that this usually requires a downpayment.  Otherwise,
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 27 2013
Profile picture for sunnyview
No. Those days are gone. While there are VA and USDA loans that are zero down if you qualify, the lowest down in most cases is still FHA at 3.5% of the purchase price.

If your credit is bad, it depends how bad. Most lenders bottom out at 580 with a heftier down payment of 10% or more depending on your details. Many other lenders will not go below 640.

Some will tell you you can buy with bad credit and no down, but those people are trying to sell you something. Most are counting on you to raise your credit and down before you actually can buy. If you want real information, talk to an lender to get the information you need to get on the path to responsible ownership.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 22 2013
Really depends on the area and the level of BAD the credit is.  Many lenders have CRA (community reinvestment act) requirements and create programs to accomodate credit challenged customers with little to no down payment. 

I would check with local banks or credit unions as they seem to have more options in my market.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 22 2013

There are programs for down payment assistance at least in  the county where I live offers it. You may want to look in to down payment assistance  programs in your city. Now with your question regarding bad credit,  you can get a copy of your credit report for free once a year- What is making your credit bad?  Buying a home you will want to be in the strongest position with credit, this helps in determing  your interest rate. If you can work on the credit and hopefully your county offers the  down payment assistance  you will be well on your way to buying a home. Best wishes to you! 

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 02 2013
The easy answer to your question is yes, you can still purchase a home. However, you'll encounter a lot of problems. The lower your credit score, the higher your interest rate will be on the loan. The lower the amount of your downpayment, the higher your loan amount will be. Then, there are things you really need to consider before jumping into that situation.

Are the situations that caused your credit to lower ongoing? That will definitely affect your future ability to make those payments. If your monthly loan payments are rather high (due to the low credit score), will you be able to afford to make those payments regularly? And if you have little or no money to put down on the home, does that also mean you have no money saved for closing costs, home expenses, or moving expenses?

These are things you need to strongly consider. So, at this point, you need to ask yourself if you are honestly ready for this commitment more than you need to ask if there is a way to make it happen.

I hope that helps.

~Emcee
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 01 2013
Lenders typically know nothing about increasing scores and are rarely even willing to talk to you if you don't have a 640.  I do have a Bank I work with that can do a 580-600 loan with as low as 3.5%-5% down, if you meet other requirements. Talk to someone who actually knows what they are talking about, and wants to help you out. Credit is tricky and every report is different talk to a professional, like me :)  I can give you a game plan to get into a home quickly. Check out [removed by moderator]

Randy Roberts
[Website removed by Zillow moderator. Please see our Good Neighbor Policy.]
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 18 2013
Meet with a few mortgage brokers and seek their advice.  Then follow their recommendations. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 04 2013
When I have clients that ask me this question, the first thing I ask them is, "why is their credit bad", and "what do they think their credit score is?".  Sometimes people think their credit score is horrible if it's in the 600's.  The lenders I recommend are still financing at a 620 middle credit score.  And there are programs in my area that allow the buyer to get in for zero down payment...i.e. Rural Development, VA, etc.  And FHA is at 3.5% down.  In most cases you can ask the sellers to pay for closing costs to help on those.  So my answer to your question would be ...yes, there is a possibility.  ;)
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 04 2013
Profile picture for wetdawgs
You've identified the issues, the next step is to create an action plan to save up a down payment, closings costs and slush fund as well as improve your credit.   Then you'll be ready to buy.

The lease with option to own suggestion skips over the fact that most rent with option to buy require a substantial down payment (10 to 20% is not unusual).   Don't waste your time or money on that one.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 04 2013

The short answer is no.  The next best thing you can do is find a highly motivated seller and try to get a lease option or rent to own.  In the mean time I would try to save some money and rebuild your credit. Hope that helps!

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 04 2013
 
Related Questions
Can a person, with little or no money down, with bad credit, still purchase a home?
Profile picture for Allen Olofson Ring
Latest answer by Allen Olofson Ring
February 27 2013 | 10 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 6460 Sly Park Rd, Placerville, CA Home For Sale
    6460 Sly Park Rd, Placerville, CA 95667

     For Sale: $499,999

    • Beds: 4
    • Sqft: 3898
    • Baths: 3.0
    • Lot: 240015
  2. 5570 5 Spot Rd, Pollock Pines, CA Home For Sale
    5570 5 Spot Rd, Pollock Pines, CA 95726

     For Sale: $275,000

    • Beds: 3
    • Sqft: 1440
    • Baths: 3.0
    • Lot: 87120
  3. 26061 Golf Links Dr, Pioneer, CA Home For Sale
    26061 Golf Links Dr, Pioneer, CA 95666

     For Sale: $39,000

    • Beds: 0
    • Sqft: --
    • Baths: --
    • Lot: 12196