What is the best way to buy a house with bad credit?
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Depends on how bad your credit is, I am a credit specialist at Quicken Loans and work only with clients that have less then perfect credit, generally with at least a 575 score I can approve my clients for 100% finacing, otherwise you will need 10-20% down, its all situational though different for every client.
Become a member of a credit union, sit down with a manager or a mortgage consultant and let them know your situation. They’ll give you advice and let you know what you’ll need- realistically- in order to buy a house. You might need credit counseling to get your FICO score up. There are also federally funded programs that help out first time home buyers even if your credit isn’t perfect. Trust me……. a credit union is the way to go- they’re smaller than banks but often have more competitive mortgage rates and personal service. I had bad credit but bought my house with the help of a credit union. Check out http://www.cuswirl.org to find a credit union near you.
Bad credit mean very high % rate and there is no way out of that , you will pay thru the nose.
Best way to buy is to clean up your credit first . . .
1) Get your debt paid wayyy down, especially get rid of high% credit card debt. Do not take out any vehicle loans prior to buying because ALL debt goes into figuring your debt to income ratio .
2) Save up 20% down or you will have to pay PMI (private mortgage insurance) and that can be several hundred $$ a month , and it is NOT tax deductible like the mortgage %.
Buying a house with bad credit is making sure you stay poor and have much of your $$$$ flushed down the commode.