How can i purchase an affordable home, with little money down and bad credit?
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I need a home, I have 1500 right now, but i have bad credit, im a first time home buyer, where can i get a nice affordable home, with bad credit and at an affordable monthly rate? Where do I start?
How can i purchase an affordable home, with little money down and bad credit?Depending on the reason for the bad credit, that would dictate the program that would best suite your goals. However since everyone on this posting is recommending FHA, I will not rock the boat. FHA is a great program for people with credit challenges, but not necessarily the program for First Time Homebuyers.
FHA will allow people with FICO scores of 560 (northeast), 560 (Midwest) and 520 (California), to be able to file for an application. Again, depending on the reason of the credit issues would determine if you鈥檙e going to be required to pay some or all of the outstanding bills that you might have. I have never seen on a purchase where debt was rolled into the original loan amount. You can obviously do that on R/T cash out, but on a purchase, I have never seen that.
FHA will allow for a 6% sellers concession that can be used towards the down payment and the closing costs. Maximum financing is 97%, there for you technically getting 103% financing (little or no money).
Depending on where you live, there are many government (state and federal) programs to assist with purchasing a new home. There are also non-profit companies that also assist with the purchase of a new home.
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