Borrowing Money for a Mortgage with Bad Credit
How much can I borrow for a mortgage if I have bad credit is a question that I receive all the time. Well I would like to tell you that banks love bad credit and that I have a magic bank that is looking to help you but I don’t. Banks do there very best to avoid people with bad credit like the plague and really don’t want to hear any excuses of why your credit is bad. They don’t care that you just got divorced or that you just lost your job. They are not in th caring business they are in the money business. If you want to talk to someone who cares you will have to call a family member or a therapist. I know this sounds cruel but I tell it like it is. When you have money every body cares when you don’t its like you have some weird form of leprosy. So lets discuss the positive things you can do when you have bad credit to help you in buying the house of your dreams.
Finding Houses the are Owner Financed
With the current real estate market there are many home owners looking to dump houses. This can be a great opportunity for people that have bad credit. Many owners are willing to do lease options and owner financing on the house just to get rid of their headaches. This is something you can simply ask for when discussing a purchase on a house. I think in this market you will be very surprised to see what deal you can have. Don’t be afraid to ask the owner these questions to see what option you might or might not have. Banks might not care but I believe people normally do. A person selling a house might be more inclined to listen to you and your reasons on why you have bad credit and be able to work with you.
Looking for Homes with a Lot of Equity
There are more houses on the market now with built in equity than at any other time in the real estate market. Banks are much more willing to excuse your credit situation if you have a house that you are purchasing with a ton of equity. Lets say you find a house for sale appraised at $200,000.00. You can purchase the house for $150,000.00 due to the slumping market and a motivated seller. You have an additional $25,000 to put in as a down payment. This means the bank will have to finance $125,000.00 on a house that is worth $200,000.00. You have a lot better chance getting approved in this scenario than without the equity or the credit. So when trying to figure out how much can I borrow for a mortgage make sure you take the equity of the house into serious consideration.
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