Posted on: 14th Oct, 2010 07:24 am
Is it possible even with the sub prime fall out to secure no down payment loan with poor credit/fair credit? My wife and I would like to purchase our first home. Combined we make close to $90K a year but as kids made lots of credit mistakes. We currently rent a home for $1300 a month, but would like to get our own.
No. If you have poor credit; you will be required to put some sort of down payment. Note: In this environment, even if your credit wasn't poor, most likely you would have to put some sort of down payment.
Thanks Theo. That leads me to my next question. My wife and I came into some money. Would we be better off paying down our debt to try andraise our scores or using it as a down payment?
I would suggest have a loan officer take a look at your credit and run a score simulator to see what immediate changes can be done to increase your credit score. I wouldn't go ahead and start paying off all debt. There's a method to the madness!
Thanks again. I will sit down with a local officer and see what they say. Thanks again for all the help.