Could you buy a house if you have bad credit?

[Jgtdragon]

What are the chance the bank gives you a 300K loan if your credit is not at 700.

 

[LikeLinus]

Originally posted by: Jgtdragon
What are the chance the bank gives you a 300K loan if your credit is not at 700.

300k is a lot of money. I guess it all depends on your down payment, your recent payment history, and your income.

 

[RossMAN]

Read MyFico.com while we await Vic

 

[murphy55d]

There are more factors involved than just your credit score. And anything under 700 isn't considered bad, I don't think, not great, but not bad... isn't 700 quite a good score?

 

[conjur]

It's possible. You may need to put down 20...30...40%? Or, you may be saddled with a higher interest rate.

Depends on how close to 700 your score is. And, within that score, what is your history with other mortgages/rent.
Did your credit take a big hit at one specific point in time or is it a history of delinquency?
Are you clean for the last 24 months?
What's your debt-to-income ratio?
Does the house appraise for the mortgage amount or higher?

Lots of variables.

 

[Ranger X]

Like someone said before, it all depends. Income, payment history, assets, etc. will all play a factor in whether your loan will get approved or not.

 

[Jgtdragon]

The thing that worried me is someone stole my credit card information and ordered Dell and AOL products. I get the bill. Ended up cancelling my credit card. the house is 430K, trying to get a 300k loan and down 130k.

 

[FrOsTxxbYtE]

have fun trying

 

[Codewiz]

Originally posted by: Jgtdragon
The thing that worried me is someone stole my credit card information and ordered Dell and AOL products. I get the bill. Ended up cancelling my credit card. the house is 430K, trying to get a 300k loan and down 130k.

If you can put down 130k I think you will be able to get one no problem.

 

[spidey07]

Originally posted by: Codewiz

Originally posted by: Jgtdragon
The thing that worried me is someone stole my credit card information and ordered Dell and AOL products. I get the bill. Ended up cancelling my credit card. the house is 430K, trying to get a 300k loan and down 130k.

If you can put down 130k I think you will be able to get one no problem.

exactly.

 

[Papagayo]

If you have a huge downpayment, you should not have any problems... That's what I did...

My house cost $685K
plus
Downpayment $250K
equals
People kissing your ass all day..

 

[rudder]

What is your debt to income ratio?

 

[PanzerIV]

Originally posted by: Papagayo
If you have a huge downpayment, you should not have any problems... That's what I did...

My house cost $685K
plus
Downpayment $250K
equals
People kissing your ass all day..

Dayum. What do you do for a living!??

 

[StageLeft]

That is a serious downpayment. So really the two big questions now are: What's your income? And what is your credit score? If it's 570 you may have issues. If it's 670 and you're making $200k/year congrats on the new house.

With a downpayment like that nobody is going to slam the door on you without at least looking to see what they can do.

 

[Budmantom]

Originally posted by: RossMAN
Read MyFico.com while we await Vic

Vic knows.....

 

[Vic]

Originally posted by: Jgtdragon
the house is 430K, trying to get a 300k loan and down 130k.

They are a number of factors involved, but with that much down (making the loan just less than 70% LTV) you shouldn't have any problems.
In fact, you should be able to easily get a Fannie/Freddie loan at an excellent rate as long as:
- Your credit score is higher than 620
- You can document acceptable income
- You can document liquid asset reserves (bank accounts, IRA, 401k, mutual funds, etc. but never any form of PERS or other such non-liquid pension plan) exceeding 2 months of the payment in addition to the down

Has the debt incurred from the identify theft been settled though? If there is an outstanding balance, particularly if charged-off, that will have to be resolved prior to closing.

And one quick tip in case you do run into some issues qualifying: fixed-rate loans are usually easier to qualify for than adjustable rate loans (including 3/1, 5/1, and 7/1 ARM's).

Personally though, I think you'll have no problems at all. A 700 score has never been a requirement to buy a house, it just helps.

 

[Jgtdragon]

Thanks guys. I will be checking with my loan officer.

 

[aircooled]

If you know you can make the payments, and you know someone who will give you the loan, then go for it! Much better than paying rent. But if you plan on moving soon then it's probably a bad idea.

 

[CrazyDe1]

A good credit score goes a long way. Like i've said I qualified on a 260k loan with 10% down no problem because I have a 752 and my mom has a 794 score. The loan officer even said you could be showing no income and we'd probably still qualify you.

A good credit score goes a long way...

 

[Ausm]

It is possible but you would have to put alot down...and also they would ream you with interest.

Ausm

 

[aircooled]

I know several folks that have obtained mortgages 2 years after bankruptcy. Keep credit proof..

 

[Torghn]

Originally posted by: rudder
What is your debt to income ratio?

This is the key. If this is low engough you can get a loan for any amount.

 

[MuffD]

This is very easy to do as long as you are taking care of your issues and could possible come up with a down payment. I have had a few friends who had credit scores in the low 600's but still got a house. ONly thing is, they didn't get the good interest rates.

 

[DurocShark]

Here at Ameriquest, a 515 score <ahem>mine</ahem> requires 25% down. Anything over 620 will only require 10%.

 

[Danman]

Originally posted by: DurocShark
Here at Ameriquest, a 515 score <ahem>mine</ahem> requires 25% down. Anything over 620 will only require 10%.

That's pretty good, yet not excellent yet not horrible.