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Purchase Home With Poor Credit?
My husband and I are looking to purchase a home in the Ft. Lauderdale, Fl area. We want to spend around $300K and have the 20% down payment from the sale of our previous property...
However we had a small business that we just closed (which is why we are moving back to that area)... We closed the business because it was not making any money and, in our efforts to keep it open, we have greatly reduced our credit scores....
He is now working full time in the area at his previous job and I will be starting a new job (in the same field I worked in previously) soon. Our credit scores are between 580 and 610 (or pretty close). Like I said we do have the 20% down and we have found several homes in the $300K range (3 or 4 bedrooms, 2 baths, 2 car garage, pool, large yard, etc...).
We are going to ask sellers to do a lease-option or owner financing... but I was wondering if anyone here knew where to start to try to get a mortgage with our position. I know we will pay high interest.
3 Answers
- TedLv 71 decade agoFavorite Answer
They don't just look at your score. 20% down is a huge safety cushion for any lender. You can call schwab.com, your local bank, and a mortgage broker. Your realtor should be able to give you some direction.
- heyteachLv 61 decade ago
You should always use a buyer's agent (free to you) to buy a house. That agent most likely has contacts and will know the local market as well. You may find a credit union more sympathetic to your situation. Also you might want to check the direct banks--like ING who also offer mortgages. Shop around, in other words. Rates are low now so even with not good credit scores and avoiding PMI you should be able to get a relatively decent rate which perhaps you'll want to refi later. Get no prepayment penalty, 30-yr fixed and you can pay a little extra when you can and get rid of the mortgage faster.
Good luck.
- Anonymous1 decade ago
First of all 20% or more is great!!! This speaks volumes but unfortunately your interest rate is not going to be pleasant. What I do suggest is talking to a loan officer first who will then take a deeper look at your credit, not just your score, and suggest a plan of action for repairing your credit so you can have access to better interest rates. It takes time to repair low credit scores so refinancing your loan is always a possibility later down the road in case you need to buy now.
