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Answers (7)
- wetdawgs
- Contributions:26945
Almost two years ago, someone asked this question.
- Michael Russell, "michaelrussell"
- Contributions:330
Wells Fargo just announced that they will do FHA loans with a credit score as low as 500 but they would require a 10% down payment, if your score reaches 580 they will do the loan with 5% down. Your score needs to be above 600 for the traditional 3.5% down payment. I would check with your local communities, many of them get grants from HUD for affordable housing and will use the money to provide grants for DPA.
- Chris Thomas, "ChrisThomasHouses"
- Contributions:241
This is not very likely as this is one of the factors that contributed to the mortgage melt down.
The best way to get into a home with bad credit is bring a sizable down payment to the table.
The best way to get into a home with bad credit is bring a sizable down payment to the table.
- Celine Fang, "imminest"
- Contributions:30
For private financing, it is possible to have only 5% down payment at 560 score.
It will require proof of income, asset, and job history.
The seller can pay about 3% of closing cost so that you don't have to have all the down payment plus closing cost out of pocket.
So for example, if you have $5000 available, you can buy a home with private financing at $100,000. Or if you have $10,000, you can buy a home at $200,000.
P.S. I am NOT an Agent. I am in the process of getting Zillow to change my profile.
It will require proof of income, asset, and job history.
The seller can pay about 3% of closing cost so that you don't have to have all the down payment plus closing cost out of pocket.
So for example, if you have $5000 available, you can buy a home with private financing at $100,000. Or if you have $10,000, you can buy a home at $200,000.
P.S. I am NOT an Agent. I am in the process of getting Zillow to change my profile.
- Reba Haas, "reba_haas"
- Contributions:620
Most down payment assistance (DPA) programs have been shelved, such as Nehemiah, but the valid organizations (like Nehemiah) are fighting with Congress to bring these programs back. In some states, like WA, there are limited resources available for DPA and there are income limits to qualify. Sellers are no longer able to provide DPA so many people have started saving (finally) and getting the 3.5% required for a down payment on FHA programs. Lower credit scores are possible for this government insured program so if you're at a FICO of 620, and can get the down payment and required reserve funds saved, this might be the program for you. Sellers can provide credits toward closing costs in many cases, so this can assist with the costs of purchasing. Be sure to talk to a local lender who is familiar with FHA (about 30% of all loans right now so there should be plenty) to get more details.
- Margaret Hickman, GRI/ABR/SRS, "kittenonkeys"
- Contributions:596
Financing is credit score driven initially, but other factors come into play as well. Do you know your credit score? How bad is your credit? My best advice to you is to go to a bank or credit union with whom you already do business. Ask to speak to someone in mortgage lending. Lay all your cards on the table and ask for some guidance. A good lender will establish some guidelines for you to follow to get back on track and correct your credit problems. It may take several months, but you will get it done if you strictly follow the plan. If one person won't talk to you, go to another lender. I always suggest my clients shop a bank, a credit union, and a mortgage lender anyway. Someone will have the time to work with you, because they know they will get your future business. Good luck to you!
- Walters Consulting
- Contributions:1661
not very likely as this is one of the factors that contributed to the morgage melt down.
but anything is possible!
the best way to get into a hmoe with bad credit is bring a sizable down payment to the table.
but anything is possible!
the best way to get into a hmoe with bad credit is bring a sizable down payment to the table.
Is it possible for a person with bad credit to get financiing and down payment assistance?
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