Find out what your credit score is. I’ve seen loans given out to people with scores as low as 560.
Or,
You can find a mortgage broker to tell you where your credit stands. They can tell you what you need to do to improve your score to get a loan.
Paying off the debt will help but you should also work on getting a couple lines of credit (secured credit cards) and PAY THE MONTHLY PAYMENT don’t be late on them! This will help your score go up to get a loan.
Ok, this question has probably been asked a million times. But I basically have a situation where I’ve got bad credit. It’s not all that much, about 5K. Mainly due to credit card debt, that has now gone to collections, or at least has been there for years. During this time, I put myself through school and now currently have a great job. My question is this: Is there a way for me to get a conventional loan, assuming that my annual income is 54K and yet I have this 5K in debt? Is this something that I will have to pay off? If I do pay it off, what are my chances on getting a mortgage at a decent rate? Thanks in advance for you help.
dave
Re: Getting a mortgage loan on bad credit - Posted by James Strange
Posted by James Strange on November 08, 2002 at 18:31:57:
Print the form and look it over. How long has your credit been clean? How long have you had stable income? Have you made your rent or house payments on time with a check?
Even if all of the above is bad and your FICO is in the low 400’s you can still get a loan. You will have to put a lot down, perhaps even have to get a seller carry back on part of it and your interest rate will be high. It will most likely also have a hard prepay penalty.
Feel free to email me when you have the facts and I will piont you to where you can go.