Bad credit, decent job, single mom, $60,000 for down payment...can I get a mortgage?

I've got some bad credit due to medical debt, owe about $2000 on two open credit accounts. I'm single, four kids, good record of working as a nurse with income about $40,000/yr. I'm also a student, upgrading my nursing degree. I've just been gifted with money that I want to use to buy a house. After I pay off my current debt, I could put down maybe 60-70K and still have a little in reserve at the bank. Real estate values for what I'd need to buy for my family will probably be between 170-190K. What are the chances I'll be able to get financed (considering the good down payment) and how will that affect my interest rate?Bad credit, decent job, single mom, $60,000 for down payment...can I get a mortgage?
That is a huge down payment! I think that in this economy that now is the time to buy a house at a good interest rate. I think that your job and down payment will qualify you for a good interest rate. Once you pay off your debt it should not be a problem. Most people look at medical debt differently than credit card debt. Take your time, Shop around for good financing and continue to make good financial choices. Congrats, and good luck continuing in schoolBad credit, decent job, single mom, $60,000 for down payment...can I get a mortgage?
As a Nurse in most areas there are special loan programs set up for you. Seek out a Mortgage Broker that knows how to work with these programs. You can ask your HR or Union rep who they would recommend you use. Even with bad credit it should still be possible with the down payment you have. I would suggest that you put 20% or $38K down and keep the difference as a cushion. The lender would rather see you with reserves than an empty bank account.



Good Luck
Sounds like you have the down payment, but the credit will be scutinized with a jaundiced eye by the underwriters. Pay off your credit cards...now. Get prequalified to see what interest rate you may be offered. Again, bad credit is going to be difficult to overcome, because even though you are making a large down payment, the bank would worry about you making the payments on time. Might you find an owner contract deal? That might be easier to get. Good luck!
I'd say if you pay off your debt and put that much money down you will probably have no problem getting a mortgage, in fact you'd probably get a decent rate right now being that it's a buyers market. Make sure you get a fixed rate mortgage and not an adjustable rate.



Good luck to you.




i would say wait and improve your credit it will save you thousands
There is not enough information to answer your question.

What is your score?

What is the derog on your credit report?

How many derogs are on there?

When was the last time you were late on a payment?

The easiest thing to do is go to the bank and have a chat, fill out the paper work and away you go. Just so you know, you will have to have an approval letter from a bank before a Realtor will even show you houses.

If things don't go well at the bank, look for houses where the owner will carry the contract. They are out there and good luck.
I'd try to find a house with no mortgage and ask the seller to hold the financing. Keep $10,000 in a special savings account for emergencies so you'll never have to worry about paying on time. You should be able to get an interest rate of about 7%, which is higher than a conventional mortgage but gives the seller an incentive to do this. In a few years (as little as two), you can refinance if you can lower the rate.



For now, this will get you in the door as a homeowner while your credit record recovers. Find a good real estate agent who understands owner financing.