Are there legitimate sources for poor credit home loans?

Hi,

There are many potential lenders in the finance market who offer mortgage to people with poor credit. All you need to do is shop around for the best. There are legitimate sub-prime lenders who specially work for people with bad credit. You may have to pay a high interest rate but a good amount of down payment might help you.

Hi,

If you credit score is low, then it is a bit difficult for you to get home loan but not impossible. There are creditors and lenders who provide loan with low credit score. But you may need to pay higher interest.

It just depends on what you mean. Try to be a little more detailed.

If you are asking... Will anyone lend money to someone who has never paid anything on time? .... then the answer is no and if you find one you probably wouldn't want to deal with them anyway... But if you didn't plan on paying whats the difference? Right?

If you are asking.... Are there any lenders who will work with someone who hit a rough patch but want to get back to a normal life? Then YES there are many lenders who work with poor or challenged credit borrowers.

Here is what a lot of people don't understand (even banking professionals)

800+ Credit Scores = Great Credit
700-799 Credit Scores = Good Credit
600-699 Credit Scores = Just OK / Not Good but not Bad either
500-599 Credit Scores = Bad to Poor Credit (at this range you never know as anything can happen and a lot of factors besides the score are important)
400-499 Credit Scores = Poor credit / Not many people are going to loan money to borrowers with sub 500 credit scores.

Hi Schweds,

Welcome to our forums.

I'm not aware of your credit, so I don't know whether it is at all a poor score. However, Eric has given an interesting explanation of how much of a score is bad and how much of it is good. So, you can just check from there whether your score is not that bad.

Considering that you are looking for a mortgage, you can give it a try with our community lenders. They offer a wide range of loan programs to suit the need of people having different income and credit scores. So, if you're really interested, just send us your request for mortgage quotes and we shall forward it to the lenders along with the minimum details that you provide us with.

If a lender can match his profile with your loan requiremnets, then he'll contact you asap.

In case of further queries, please feel free to ask us.

Good luck

Hello Eric,

Your post was really informative.

I think, the FHA loan program might come to the help of buyers with poor credit. But the credit history is important.

Hi Jenkin7,

Yes FHA could help. The point I was trying to make is this. People talk about credit score too much. The credit itself is the most important factor. I don't focus on the score instead I ask questions like - "Do you pay any bills on time?" "Have you ever paid any bills on time?" "Have you been late on any bills in the last 12 months?" "24 months?"

The other point I was trying to make is that 650 borrowers are not usually good credit customers and I here the statement all the time of "oh, you have a 650 score that is great credit" When in fact it is just at the middle of the road as far as scoring goes. And even though it is a high enough score to qualify for a loan it doesn't mean you really are going to qualify when you weigh the other factors involved.

So original poster if you would please answer my questions above that would be great in helping to answer your question.

Our dreams were crushed of owning a new home. The company disputed items on my wife's bureau and her score has fallen even lower is there any help. We were told the during the process that we were approved. I made a dowmn payment to the builder and bought new furniture for the home and now we are out in the cold on this deal. Any answers.

Welcome Don.

You have been approved and made the down payments. Then have not the lender given you the money/home loan? Talk with the bank and ask them why are they not giving you the money?

I feel you should consult it with a real estate attorney.

don, your situation does seem pretty odd; but in order for us to respond with appropriate commentary, i think we need to know a little bit more information.

"the company" that disputed your wife's credit history isn't explained. how could that have resulted in lowered scores?

there is way too much here to digest in order to provide solid information. please elaborate.

You are not 'married' to the builder's lender. You can approach a broker with your problem to see what might be done apart from the builder's choice of lender for you -- by rights, they should be shopping the laon to another lender for you.

Take a copy both credit reports and be up front about the 'issue' that started the problem.

Who is the major wage-earner? Does she have to be on the loan itself?