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Profile picture for bw86301

I have a house for sale the buyers have VERY bad credit is there anyway they qualify?

I am willing to help them finance the down payment and then the first time home buyers credit would help.
  • June 24 2009 - Cleveland
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Answers (8)

Best Answer

Unfortunately loans for bad credit situations are long gone.  You are not able to assist in helping them with the down payment either, only the closing costs and prepaid items. 

Sorry to be the bearer of bad news!

Good luck to you!
  • June 24 2009
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Profile picture for FinancialResources
You may want to consider a rent to own contract. This is where a borrower can live in the home and pay rent. In the interim they can work to improve their credit. Generally a portion of the rental payment each month can be credited towards the eventual sales price. In the event the borrower doesn't qualify for a mortgage during the designated rental period, you would be free to sell the home to someone else.

Obviously, bad credit needs to be better defined. A good mortgage professional may be able to review the credit report and assist in a strategy to improve their credit rating in the future.
  • July 04 2009
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bw86301,
Can you be more detailed on the buyers bad credit?  Saying bad credit isn't specific enough and though their credit may be bad, it may not disqualify them for a loan.
  • July 03 2009
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Chris,
Please do not self-promote on Zillow.  It is not allowed.  Just answer a question without the self-promotion.
  • July 03 2009
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[content removed by moderator for being self-promotional]
  • July 03 2009
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Profile picture for HomeBridgeLasVegas
A "bad" credit score is relative to who you are talking to and what you are trying to accomplish. What is more important is a "lendable" credit score.

In the current lending climate, a 580 FICO score seems to be the bottom end of the scale. Should your buyer not have this level of score, you will need to determine if they can get there with some work on their credit profile. Simple things like paying down credit card balances can have a dramatic impact on scores. There are tools we use to predict the impact of an action on the FICO score. If the buyer then performs the action, we can then have the report rescored.

Derogatory items such as collections and judgments will prove to be more challenging. If the buyer has a bankruptcy, there are statutory limits as to how long they need to sit on the sideline before they can buy. Have your buyer work with a mortgage company to determine where they stand. If they can not achieve a 580 score with corrections, find another buyer.

If you own the property "free and clear", you could always carry the financing yourself if you want to sell the house. Goo luck. 
  • June 25 2009
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I would agree with the other posts.  VERY bad credit is almost certainly dead these days.  There are some local credit unions that consider it on a case by case basis with the addition of a cosigner.  It is also possible that they think their credit is VERY bad, but it actually is 630 or better when it is pulled up.  I would find out their actual credit score and go from there.  If it is in the low 500's or below, it is not going to happen.  Hope that helps. 
  • June 25 2009
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Profile picture for wetdawgs
what is the FICO number of "very bad credit"?   

Did the people with the offer carry a preapproval?  If not, don't bother.

  • June 24 2009
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