Loan Options for Poor credit

Advice for First-Time Home Buyers with Poor Credit - Quicken Loans Zing BlogThe home-buying process can be intimidating for first-time buyers, especially after the housing market’s rollercoaster ride over the last decade. Average home prices spiked from 2002 to 2006, topping out just over $300, 000, and then they fell just as sharply over the next two years. They’ve been up and down since then, bouncing between the $170s and $220s, according to the National Association of Realtors (NAR). An NAR consumer survey demonstrates that consumer confidence is on the rise again, with 68% of respondents saying now is a good time to buy a home; that’s up 8 points from 2012.

Mortgages for First-Time Buyers

Check your credit. Experts agree that most lenders consider good credit to be 660 or higher:

  • 760 to 850 is excellent
  • 700 to 759 is very good
  • 660-699 is good
  • 620 to 659 is fair
  • Anything below that is poor

Credit scores affect mortgage interest rates. If you have good credit, you’ll have a lower interest rate and vice versa. If your credit score is low, it is possible to improve your credit score and get a better score, but that takes time. You have many options for buying your first home, a few of which are highlighted below. Talk with a mortgage lender who can walk you through the process and recommend options; ask your real estate agent and friends for recommendations.

Bad Credit Mortgage Options

  • You can make a larger down payment on your home, which will reduce your monthly payment. If you’ve got credit problems, however, you don’t likely have a large lump sum. Look for assets that you can liquidate without taking large losses. For example, a company like J.G. Wentworth may be able to buy your future payments from an annuity or structured settlement for a lump sum of cash. You’d no longer have the comfort of receiving regular income, but a large down payment on a house can lower the interest rate and get you overall better mortgage terms. Having the cash now may be worth it.
  • You can apply for a higher-rate mortgage now, rebuild your credit over the next few years and then refinance your home at a lower interest rate. The disadvantage of doing this is that you have no guarantee that lower interest rates will be available when you are ready to refinance. Also, refinancing is subject to “points, ” which means you’ll have some out-of-pocket expenses.

Improve Your Record-Keeping is a popular tool for people who want to understand where they’re at financially. It’s a web-based application that aggregates your financial information in one place. You can set up alerts, create budgets and track investments through this portal. You cannot make trades, deposits or withdrawals here; it is a money-planning tool that’s free and easy to use. Forbes named Mint one of the 100 best websites for women in 2013.

Interesting facts

  • Financial exclusion is the unavailability of banking services to people living in poverty. It is believed to be one factor preventing poor people from exiting poverty, by forcing them to manage their finances on a cash-only basis and restricting their access to equitable sources of credit.
    Financial exclusion can make poor people vulnerable to...
  • SIVA doc types are available to a wide variety of borrowers with poor to excellent credit. The minimum credit score is typically 500 and, in most cases, the mortgage history can reflect no worse than a 90 day late payment on their mortgage. These parameters will vary from lender to lender. However, what is always true is that the higher the...

Additional information

Poor Credit Loan Option - Cash Advance No Credit Check
Poor Credit Loan Option - Cash Advance No Credit Check ...
Home Loan Options for Borrowers with Bad Credit - Carmel
Home Loan Options for Borrowers with Bad Credit - Carmel ...
Loans for Poor Credit Net -- Welcome Video
Loans for Poor Credit Net -- Welcome Video
The SBA Loan Book: Get A Small Business Loan--even With Poor Credit, Weak Collateral, And No Experience (SBA Loan Book: The Complete Guide to Getting Financial Help)
Book (Adams Media)
  • Used Book in Good Condition
Car Loans for Poor Credit -
Car Loans for Poor Credit -
Poor Credit Auto Loans for New Vehicles : Buy a New Car at
Poor Credit Auto Loans for New Vehicles : Buy a New Car at ...
Co-Signing for a poor credit auto loan
Co-Signing for a poor credit auto loan

Popular Q&A

What are my options for an auto loan with poor credit? (detailed)? | Yahoo Answers

It's not going to happen.
You still have many negative items in your credit reports for your scores to be that low. No real lender will lend to you.
Do not fall for the online loan scam.
It's easy to operate. A baby could do it.
If a credit union or small local bank turns you down. Everyone else will