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8 Replies Latest reply: Feb 27, 2009 12:45 AM by NoBullFunding RSS

I need a loan but have bad credit...what are my options?

TexasGal Newbie
Currently Being Moderated
I have been trying to find a way to buy a house for a year and have bad credit. I have found a house that is in a great neighborhood, not to expensive, walking distance to work, but cannot seem to get qualified with my credit score. They will do owner financing but I still am in need of $3000 down and cannot get a personal loan for that either because of credit score. Are there any options out there for me? Or anyone willing to help? Thanks you in advance for any help or advice given!
  • Re: I need a loan but have bad credit...what are my options?
    ironman Newbie
    Currently Being Moderated
    Hey Texas Gal,

    my only answer is set a budget to get the downpayment together as soon as possible..I am a firm believer if it's meant to be it will happen! :)
    • Re: I need a loan but have bad credit...what are my options?
      TexasGal Newbie
      Currently Being Moderated
      Yes, setting a budget is a very good thing to do! But I do not have 6 months to a year to reach a goal like that. Plus I have only a couple of months to get out of the house I am renting. And I keep getting told that I do not have enough open credit accounts to be able to qualify for a mortgage ever. So I am basically looking for something to help re-establish my credit and have a down payment for a house. Thank you for your advice, If it's ment to be, I will or won't find a way :)
      • Re: I need a loan but have bad credit...what are my options?
        Haileysdad Newbie
        Currently Being Moderated
        Google..first time buyers programs. Sounds like FHA might be able to help you. But remember with the market going the way it is, it is getting harder and harder to get a mortagage. But there are lots of programs out there, you just have to look. Unless you debt ratio is just to high, you should be able to find something. Google.. Home America Mortgage and Taylor bean and Whittaker Mortgage, they both use FHA loans alot. Good luck, and keep your head up...
        Eric
        • Re: I need a loan but have bad credit...what are my options?
          TexasGal Newbie
          Currently Being Moderated
          I have just started to do some research on FHA, My problem is that my current credit score falls right below 500. Which is not good, I actually talked to someone from Countrywide today and she told me that I needed to open a credit card or get a loan and then try again in 6 months to year that way I would have more that one credit account (My Auto loan) open. Using google is a great I idea thank you!
  • Re: I need a loan but have bad credit...what are my options?
    CARPAYDIEM Newbie
    Currently Being Moderated
    GO to www.NACA.com They will help with all your needs also no down payment and a fixed 6% rate plus they Work with the Best Bank of America trust me this is all you will need.
  • Re: I need a loan but have bad credit...what are my options?
    NoBullFunding Apprentice
    Currently Being Moderated
    If you don't have $3000 to put down, perhaps you need to get your finances in order before committing to a mortgage. People tend to forget that bad credit is bad for a reason. Or to put it another way, if you have not honored your debt committments in the past, why should any lender believe that you'd handle even a $3000 loan any more responsibly?
    • Re: I need a loan but have bad credit...what are my options?
      dlflake37 Newbie
      Currently Being Moderated
      There are reasons that people have bad credit. Mine is 2 years worth of serious health issues and a health insurance company that didn't pay all of my bills! Mr No Bull Funding, maybe you shouldn't respond to these questions as you are insulting people who are only looking for help. If you have a response that is helpful then by all means share it, but you have no right to judge people and that is exactly what you are doing. And that is all I have to say to you. As far as building your credit goes it is a long process, but getting a credit card is a positive start. I have 3 credit cards and use them for all my daily needs, groceries, gas, anything that I would use my cash for and pay them completely off as soon as the bill comes in then you don't get the finance charges. Do you have a close friend or family member that can co-sign for you or that you can be a cosigner on the loan? That is how I got my car. My close friend put the car in his name with me as the co-signer. That way I got my vehicle and began to build my credit as well. I paid off the loan and my credit score went up! And with each credit card my score has gone up. I have also challenged things in my credit report that were not accurate and got them out of my credit report. These are all steps you can take to get your credit score higher. I wish you the best as I know how difficult it is to get your credit score higher.
      • Re: I need a loan but have bad credit...what are my options?
        NoBullFunding Apprentice
        Currently Being Moderated

        Flake - Sorry if you saw my post as negative or insulting. The reality is that if someone has bad credit and no money, they should not be purchasing a home. There's a world of difference between you qualifying for a small credit card and qualifying for a residential mortgage. Perhaps if people were more responsible when it came to borrowing, we'd not be in the real estate mess that we find ourselves in today. Maybe if there were more "mean" guys like me talking sense into people, we wouldn't have foreclosures left and right. What would you prefer: me telling it like it is (ie this person should not be buying a house) OR me sugar coating it and having that same person on the street in 6 months because they took on more debt than they could handle? Perhaps its YOU who is doing the dis-service here Ms. Flake by encouraging an unqualified buyer to make a purchase.

        I spend my days foreclosing on properties and negotiating with people who borrowed money that had no business borrowing that money. If you saw how ugly it gets on the back end, you might understand why I'm so adamate that people wake up to their fiscal realities. If someone had simply told them that they were unqualified to borrow, they might still have their home or their life savings. Instead, they have lost everything.

        As far as suggestiong a co-signer for the loan, I can't tell you how many times I've seen that scenario blow up to everyones detriment. It usually goes something like this....Bob has bad credit so he gets dear old dad to co-sign. Since Leopards never change their spots, Bob quickly finds an excuse not to make his monthy payment. The bank calls dear old dad to let him know that A) his credit is being hurt because payments are being missed and B) he is responsible for the payments just as much as Bob. Dear old dad goes ballistic on the banker because they are ruining his credit and because it's "not even his loan".

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