Jackie asked:


We both have poor credit but don’t want to rent an apartment. We believe it will just be a waste. We would like to buy a home and actually have our money being invested into something. Being said what are the chances we can even get a company to give us a morgage in the economy. We are looking for something around 90000- 105000. Thanks, oh and any good companies u can advise for us?

MANUEL

3 Responses to “Fiancee and I have bad credit. Chances of getting morgage to buy a home?”

1. dustoff on February 11th, 2010 4:02 am

   How bad is “bad”? How much down payment do you have? What is your income? You provide no specifics.

2. Xavier on February 14th, 2010 5:09 am

   Your credit history, debt to equity ratio, and how much you have available for a down payment will be the big storytellers here. I would recommend going to a mortgage broker and explain your circumstances. They often have access to vendors that may specialize in situations like yourself.

   The worst that can happen is that you both take a hit on your credit, but at least you would know where you stand. I would think that with the tightening of credit, if you are trying to buy with no to little downpayment (less than 5%), your chances may be slim. But talk to a broker, I have had good luck with them in the past and would recommend any of them over just going to a bank.

   Look at it this way, with one look at your credit, they can share that report with other lenders rather than going to bank to bank and having your credit score take an even worse hit.

3. Booyah5225 on February 15th, 2010 1:14 am

   What makes you say that renting is a waste. If you would invest the difference between what your rent is and what a mortgage would be then you will probably be better off. Rents right now are a bargain given the amount of vacant homes on the market. I had to recently lower the rent on one of the units that I own.

   In terms of getting a mortgage today with bruised credit your chances are slim to none. If you would be able to get a mortgage the rate is likely to be very high and why would you want to do that to yourself.

   Here is my advice to you: Open a Roth IRA and try and put the maximum in per year which would be $5000 for both you and your fiancee. At the end of four or five years if you want you can deduct any contributions that you make at that time tax and penalty free. By that time if you pay your bills on time your credit should be good again.

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