How good of credit do you have to have to get a home loan?

my fiancee and I are trying to buy a house, we were offered a house by some family friends going through a divorce. It is only $90,000. (awesome deal for california) Unfortunatly, we both have wrecked credit. we have no idea what the scores are but I know that they cant be good. we are both only 23 years old. Originally we were going to put it in his moms name because her name is gold to any bank, but now we found out the interest will be high because she already has a home loan and this one would be considered for renting out.... thus...more interest. So the bank wants it in our name or at least one of our names with her as a cosigner...... what are the chances that we will get approved.... the loan is not very much and it will be on a 30 year note....how much do you think our interest will be? Is it possible to get a laon in our names like that with bad credit? any advice or comments will be appreciated. Thanks in advance.How good of credit do you have to have to get a home loan?
Hello,



I agree with everyone else. However people buy houses with low credit all the time and there are programs that you can go through that can repair your credit. Look at all the factors.

Learn creative financing. Here in CA there are a lot of things you can do.

1. gift of equity or deed.

2. Refi and add you to the title.

3. purchase her notes. This one allows you to purchase her mortgage and take position as the bank. Sure she would be paying you each month but I'm sure you all will work it out.

4. Lease Option. This method is one that my investors love use. You have the option to buy the home after living there for and paying on time for a certain period of time agreed on. You can structure the deal to where she gives you full control over the property which would put it in your name as well. There you beat the bank and went to title and got a home without having a loan. Is it that easy,,, of course not. I would have to explain it vs. writing it.

Everyone thinks that you have to have a bank or loan to take over a property. You don't. Creative Financing is Key. Learn it, Love it and you can live in it.

I'm a loan officer as well and I deal with many clients. I love purchases. I love it when people are told they can't qualify for a home. Everyone is a buyer. You just have to know how to make it work.

Email me law_edavis@yahoo.comHow good of credit do you have to have to get a home loan?
The worse your credit is, the higher your interest rate will be. That means that you will pay much more over the life of the mortgage. Clean up your credit. Then buy a house.
What is your current credit score? I can locate help for you if your credit score is as low as 500. And if you are buying it with your financee and if he has below 500 I can still locate help for you to get you a loan and a decent interest rate. Let me know.
Right now the investors (banks) are tightening up their guidelines. However there are ways that you can quickly raise your credit score. And to be honest most of the people that think it's impossible to get a home because of their credit are often mistaken on their credit score. There are also a lot of other factors. Such as your debt to Income ratio and what your loan to value is. If you have a 450 fico score and need 100% financing it's more than likely not going to happen. However there are many many options out there for people with less than perfect credit. If you have any questions for me email me back.
Ok i'm a loan proccesor. 1) Try it in your name with mom as a cosigner. 2)If that doesn't work and mom is the only way you can do it in her name and you cosign as a rental property and pay the high intrest for 6 months then jus refi it as your house in 6 months. If the house is worth 120,000 and selling for 95,000 you can bump up the sells price to 105,000 and have the seller give you money to close and they get the money back at closing since you bumped up the sales price. Either way if the intrest is to high refi in 6 months for a lower intrest rate
Well if your credit is bad two things could happen:

1. Interest Rate will be SKY HIGH

2. Declined for the loan



So my suggestion would be: First try to get the loan. Can you or your fiance qualify for the loan by yourselves. Put it in the name of the one with better credit.

if that doesnt work:

If you are sure that this is a great deal and there is nothing wrong with the house: Have your mother-in-law get the house.

She'll still be paying lower interest rate than you would if you have bad credit. Maybe she could re-fiance or (sell) it to you down the road sometime.

All this advise is ONLY IF THE HOUSE IS A GREAT DEAL %26amp; you love the house and plan on being responsible and paying for it.