Your Questions About Mortgage Loans For Bad Credit

Lisa asks…

Is it possible to get a mortgage with a decent, fixed interest rate with bad credit?

I have good to fair credit, but he has bad to, well, bad credit. We’re sick of renting.

Also, has anyone had experience with online loan companies like Lending Tree?

John answers:

My husband and I just bought a house and it sounds like we are in the same situation. I have bad credit, my husband has fair crdeit. So, we talked to out mortgage lender and they said the best thing for us was to have the home only in my husbands name, otherwise my bad credit causes us to have a very high interest rate. Plus, if something, god forbid happened like a divorce, since we were merried before the purchase of the home, I still have say in the settlement.

We also looked into lending tree, but they wanted a large amount down, like 20%, and we just didn’t have it. So we went through citizens bank. They only required 3% down, and when we bought our house we put in the offer that the home owner pay our closing costs and 3% down.. People really want to sell there homes, so go for it.

P.S. We got a locked interest rate od 6.5.% Not bad for not great credit.

Mary asks…

Can a person with really bad credit still win a house with a mortgage in a divorce?

If you have great credit and get a mortgage and then marry someone with really bad credit, can you give your spouse the house and mortgage in a divorce even though they would have never qualified?

John answers:

That’s up to the bank, a judge can’t MAKE a bank qualify the person, and if someone is being taken off the loan, then that person will basically have to refi the house,

Chris asks…

How Can I Take Advantage of the Stimulus Plan?

I am a responsible homeowner and I was blessed not to get into a bad mortgage loan, no credit card debt and soon no car payment.

I have a great credit score and would like to know how I can take advantage of the stimulus plan? Can I refinance? Can I purchase a second property at a very low rate allowing me to have income property and someone else affordable housing?

John answers:

Yes buy another home right now is the perfect time they are so cheap! Plus you can rent it some one and make some extra money and it will help the economy.

Michael asks…

where can I find a place to get a loan with BAD credit?

I need a mortgage loan. I was never able to establish any kind of credit and now have some bad marks on it. I have a GREAT job if that helps any.

John answers:

I may not refer you to some site or big company like these other people might as I’m not trying to advertise for something, but I would say talk to a local community credit union. With the big name bank that I had, (Chase) There was no way I was going to get a loan for a mortgage. My husband and I happened to live next door to a credit union so we went in and checked it out. Let’s put it to you this way, they are so much better at giving you personal advice and service. Granted, the do have very specific things that they look for when getting a loan, however, they are so much better to work with because they do work with you. When we went into the credit union, I had no credit and my husbands was poor. Now, thanks to their help in understanding what we needed to do, both our credit scores are over 600 and they are very willing to help us.

So just from personal experiences, I would say, if nothing else, talk to a loan officer and see what it may take to help you out. I hope that may help a little.

Maria asks…

Where to find services where people with bad credits scores can share others credit to improve their score?

It is similar to credit piggy backing but not only sharing the persons credit card as an “authorized user”, but sharing the “individual”, such as lines of credit, mortgage, loans, etc. Does such service exist in America? I have heard it is popular in Arizona and Virginia. Thanks

John answers:

You can improve your credit score with knowledge, some time, some effort and not a lot of money. Start by learning the credit laws in the United States. The big one that will help you is that credititems. If they can’t prove it’s correct or don’t respond in time, the items must be removed.

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