- Find a Real Estate Professional
- Alabama Realtors®
- Alabama Mortgage Lenders
- Alabama Home Improvement Pros
- Alabama Other Real Estate Services
- Review an Agent, Lender or Pro
- Marketing on Zillow
- Real Estate Agent Advertising
- Join the Professional Directory
- More
Replies (8)
- Elizabeth Marquart, "EMarquart"
- Contributions:8
Low down payment is not a big issue, depending on the purchase price. You can get an FHA loan for as little as 3.5% down. Also, remember you will need money for closing costs in addition to the down, these can run 2-3% of the purchase price as well, depending on your local area. Your profile does not say where you are located, so I am giving you info for the Los Angeles area where I work.
The bad credit is the main issue here, even with and FHA loan you will need to have decent credit in the mid 600's. No, money down does not exist any longer, at least in Los Angeles. If you credit is below this number then you may have to focus on getting that repaired or waiting it out until the "bad" items fad away, but you must continue to remain current on all credit forward so your score improves.
Credit is the key factor that any bank looks at first, then income and debt ratio's, then down payment.
The bad credit is the main issue here, even with and FHA loan you will need to have decent credit in the mid 600's. No, money down does not exist any longer, at least in Los Angeles. If you credit is below this number then you may have to focus on getting that repaired or waiting it out until the "bad" items fad away, but you must continue to remain current on all credit forward so your score improves.
Credit is the key factor that any bank looks at first, then income and debt ratio's, then down payment.
- Bart Medlock, "BartMedlock"
- Contributions:247
I'm a broker in Southern Indiana so I'm guessing business is done in similar fashion to where you are in Attica. I would advise you to talk to your local bank/any lender you prefer about getting pre-approved. Also guessing 100% USDA Rural Housing loan may be available in your area so ask the bank you talk to if they offer 100% USDA Rural Housing loan. Assuming you are able to get pre-approved, the next step finding an experienced, full time REALTOR -who you choose - to act as your buyer agent. Once you and your agent have found the home you want to make an offer on, the agent can help you negotiate the contract for the seller to pay most or all of your closing costs so you could have very little out of pocket expenses. I typically tell my clients they need to be prepared/able to comfortably spend at least $1000 out of pocket to cover an earnest money deposit ($500) and home/termite inspection ($300-400) and/or any other inspections they want to have. Radon testing is becoming more common/usually costs approx. $125. Good luck and you are welcome to call me if you like. Visit BartMedlock.com
- Christine McGinty, "whitemountainagent"
- Contributions:273
I agree credit is key here. New programs, tax credits etc. come up without notice so the best thing you can do to take advantage of new government programs as they become available is to have your credit in tip top shape. If you don't have good credit, the best program out there will be of no use to you. Get together with a lender so they can pull your credit report and see where you currently stand. Lenders are great at advising you as to what you need to do to bring your credit scores up to an acceptable range.
As said before you will need some down payment for most programs and of course your closing costs. Your lender will guide you there also.
The days of sub-prime lending which got us in this mess in the first place is gone. Financing is tighter than ever so be prepared to work on the credit and get you finances in order. Don't try to put a round peg in a square hole and regret it later.
- wetdawgs
- Contributions:26854
A few years ago, one could get financed with bad credit and no down payment. The rules are getting more stringent. Of course there are agents who say they can get you into a house, but you need to think through this carefully because often buying the house is easier than staying there when the monsters that consume dollars happen (roofs leak, furnaces break, pipes break, sewers plug etc)
Do you understand your credit and why it is bad? Are you taking actions to improve it?
Is there a reason you have no down payment? If you've not had the ability to save up a down payment, chance are good you are not ready to buy because the money monsters will be tearing at your budget very quickly
Do you understand your credit and why it is bad? Are you taking actions to improve it?
Is there a reason you have no down payment? If you've not had the ability to save up a down payment, chance are good you are not ready to buy because the money monsters will be tearing at your budget very quickly
- Celia Butler Home Loan Diva, "At Academy Mortgage"
- Contributions:359
You have too many risk factors. Here is the thing. A combination that you are suggesting will not work - there has to be something going on that is in your favor.
Here are some examples
no down payment
USDA loans have income restrictions but will do a 100% loan BUT you have to have good credit (credit better then on a FHA VA etc)
little down payment (FHA loan for 3.5% of purchase price)
you can get the sellers to pay closing costs but I can only do a loan if your mid credit score is 600 and you will have to be able to put 3.5% down. FHA will let you get a family member to give you the money
There are private loans but you have to have 30% of purchase price to put down and a good stable income to obtain them - they will not care about your credit score.
Bad credit + no money down = no loan that I know of ...
Sincerely,
Celia
Here are some examples
no down payment
USDA loans have income restrictions but will do a 100% loan BUT you have to have good credit (credit better then on a FHA VA etc)
little down payment (FHA loan for 3.5% of purchase price)
you can get the sellers to pay closing costs but I can only do a loan if your mid credit score is 600 and you will have to be able to put 3.5% down. FHA will let you get a family member to give you the money
There are private loans but you have to have 30% of purchase price to put down and a good stable income to obtain them - they will not care about your credit score.
Bad credit + no money down = no loan that I know of ...
Sincerely,
Celia
- SteadyState
- Contributions:787
I hope not. If you do decide to go ahead with the plan to purchase based on your current situation, may I suggest that:
1. Your contract specifies that RE agent fees to be refunded in full should you go under foreclosure in the next five years.
2. You reflect on what can happen to your finances, the finances of your bank, and the finances of your community should the price of the property drop and if some reason your company faces tough times.
Please take a calculated risk not a gamble.
1. Your contract specifies that RE agent fees to be refunded in full should you go under foreclosure in the next five years.
2. You reflect on what can happen to your finances, the finances of your bank, and the finances of your community should the price of the property drop and if some reason your company faces tough times.
Please take a calculated risk not a gamble.
- Ofe Polack, "Ofe Polack"
- Contributions:1420
My best advice is to talk with a mortgage broker, lots of things are taken into consideration when approving a loan. The mortgage broker will provide guidance on how to improve your credit, as well. The best of luck!
- BrandyJenkins0
- Contributions:1
If your credit is bad, you should just forget about financing. The banks are not doing it and they do not care what you say. I have been laughed at too many times and I am telling you that it will not work. Everything that a bank does is done on a number. I was a teenager that knew nothing about credit and now I am paying for it. I do not think that anything should go by what happened in the past, it should be based on what you can do now. But that is why I find that banks are just plan dumb and all they care about is the money they can make and could care less about other people. So, do not try it unless you have the number to get what you want.
low down payment bad credit no bankrupcy history first time home buyer is there any finaceing option
Stating a discriminatory preference in an advertisement for housing is illegal. If you think this content is discriminatory or otherwise inappropriate and feel it should be removed from Zillow, please let us know by completing the information above.
We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.