Question : How to get a home loan and start paying on bad debit?
My spouse and I are wanting to purchase a home. We pay our rent every month so we should be able to pay a house payment. We have some very bad credit issues in the past and would like to take care of them either by settling or paying the debt off slowly. But how does one go about this? I know I can get a government loan if I start paying on the bad debt, but companies want lump sums and dont want to work with us. They demand payment now and dont' care otherwise. Any suggestions?
- asked by Daisy
All Answers:
Answer #1
So you wantr to GET A LOAN TO PAY A DEBT? Isntthat what a loan is? a debt. Depending on thedebt, you can send them payments. They will sendyou a cash pay offer for a lower amount eventuallybut they will want cash as you said. Just tellthem you can pay $xxx monthly. If the debt is amedical. it wont count a lot on your home loanunless it is a large amount.
- answered by Bill P
Answer #2
There are hundreds if not thousands of websites onthe internet enumerating the ways to apply andreceive home loan when you are plagued with badcredit issues. These sites help consumers with badcredit scores to increase the viability of theirexisting credit scores and set up loans regardlessof their credit history.Companies that specializein bad credit home loans; usually offer a widerange of options for consumers with badcreditBadcredit hasn't stopped them from purchasing a home.There are several programs available for peoplewith bad credit that helps to restore their creditstatus and to live debt free lives.
- answered by chrime t
Answer #3
I've worked hard to have excellent credit on avery low, low income. Get yourself out of debtbefore you get into a home or you are likely tojust have more and more debt. One, if you aretrying to work with creditors and they refuse towork with you, take their phone calls so you canshow that in court. Refuse to talk to them unlessthey allow you to take the call. There are newlaws that say that any reasonsable offer to workon reducing your debt, must be accepted. Workingwith a state agency for credit reduction is best. Go online for your state and look up: StateAssisted Debt Reduction. DO NOT, DO NOT pay somecompany to help you. If you go with a state one,the fee per months is like usually 12 to 20dollars. All that does is pay the person whodoes all the work for you. They charge you onefee per month for all your debt. They then geteach creditor to agree to not add any moreinterest, to accept so much on the dollar. Mostwill attempt to get your debt down to where itwon't take mroe then two years to pay it off. Doing this also saves your credit rating andactually as you pay on time it ups your score. Ihad a friend who had 1,000 in outstanding debt. She was charged through the state agency 100 permonth, and only 12 of htat was a fee, theremaining 88 dollars went to paying off herdebt.You will be expected to sign a paper sayingyou will not take out any credit of any kind, instore or other until you are out of debt. I'drecommend learning to budget as well. Poeple justdon't live within their incomes. I live on 700.00per month and pay 465 in rent, yet I stay out ofdebt. It means learning to go without things youdo not need. People often think they need dinnerout once or twice a week. A coke or coffee eachday. Something new to wear each month. YOu'llfind if yoiu learn to make a budget that both youand your husband can live off of, get out of debt,you'll actually save a lot. Learning to sasvefor things you want and paying cash, means whenyou buy something it's yours, without interest andno one can come and take it away if you don't payoff a loan. After you get out of debt, learningthe key that you never buy a home that the monthlypayment will come to more then 1/3 of one personsincome, not two incomes. That way, if somethinghappens to one of you, you've learned to live offthe one income when it comes to the inportantthings. If you can't live off one income for allyour major things, Rent or Morgage, Food,Clothing, Water and Gas, Lights, Phone, Internet,Car, Gas and money budgeted for car repairs so youhave some set aside when things go wrong with thecar, so you won't have to go into debt to fix thecar. So get in with someone and get out of debtbefore you go into a home. Then when you think ofbuying a home, you can't say becuas eyou canafford rent, you can afford a home. You have toadd into monthly expenses once you own a home. Money for repairs that always need done. Moneyeach month to pay your taxes on the home eachyear. Renters normally do not have to haveinsurance, so you'll need to add in home ownersinsurance. You'll need to add in yard care,water, buying a mower and other yard care tools. You'll have the added bill of sewer and garbage,water, etc. All these you should consider thatin addiction to the house payment, you'll bespending about 400.00 more each month, at least,for the added expenses of owning a home. That400.00 is on the low end, most when they add upall the expenses, average out between 800.00 and1,200 more per month. You do not want to waituntil taxes come due each year and wonder wherethe money is going to come from. Also, taxesusually increase each year. Good luck. Get out ofdebt, then really look at every bill you'll haveonce you own a home. Do not get an adjustablerate, get a fixed, that way you are not going upand down with the market. Make sure you can takecare of all necessary expenses, including food andpersonal necessities on just one income. If youcan't, consider saving at least 1/4 of what you'dpay on a home, so that when hard times come, youan still pay the house payment. Take care and Ihope it all works out for the two of you.
- answered by Mountain Bear
Answer #4
Maybe you can try below website to get theinformation you need. It's about bad credit homeloans articles for your secondopinion.
http://www.d-best-free-credit-report.com/Articles/Bad%20Credit%20Home%20Purchase%20Loans%20-%20How%20To%20Purchase%20a%20Home%20with%20Bad%20Credit.htm
- answered by Nexia O
Answer #5
Hello, I’m pretty sure you know that your creditscore and credit history are very importantfactors when it comes to obtaining a mortgage thatbest works for you. I do not recommend you takeout a loan to pay your debts, however, I dorecommend you and your husband consider takingsome steps to re-build your credit such as slowlypaying your bad debts off in order to increaseyour credit score. It’s going to take time, butit will be worth the wait when you consider thatyou’ll most likely receive a much lower interestrate on your mortgage loan when you're ready topurchase a home.Finally, it's not typical forcreditors to refrain from working out a paymentplan. I suggest you continue to call and ask for asupervisor if you need to. I'm sure someone willwork something out with you.I hope this ansersyour question. Good luck!I have included a linkwith great information regarding help withimproving credit scores. I hope this answers yourquestion. Good luck!
- answered by Quicken Loans
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