Loans for First time buyer with not so good credit records

Guest 0.10 Dollars($)

I am intending to buy my first ever home in mid 2008 but my credit isn't that good. I have credit cards one of which I'll have to pay by end of November. There are 5 late payments on this card for the past 5 years but the latest was in 2005 december. The other card is 2 years old and I've paid it well. Apart from these cards, I have collection accounts, those are 5 in number (2 will cell phone companies from 2004 and 3 for medical bill non-payment). I also bought a car in the meantime and have paid the loan balance prior to the end of the auto loan term. And I could pay $6500 within just 9 months and there wasn't any late payment; that was way back in 2005. I had earlier taken federal loans (student loans I should say) of around $5500 and I've been on time with the payment there for the last 12 months. So my question is with all the scenario that you get to know here. How hard is it to get a mortgage? I'm expecting a high rate but who doesn't want a favorable payment. But I'd love to buy a house now! For the past 10 years I have been at an rented home and it's just like throwing my hard earned out of the window.

Guest 0.10 Dollars($)

Don't think getting a loan will be that impossible but you need to shop well for it. There are a lot of options available no doubt but the offrers will differ. By the way, have you got your recent credit score? if not, then get a free report from any of the credit bureaus or else how will you know what's your credit condition. i mean ok you have debts, late payments and collections but at least you should get a rough score so that you know whether you'll proceed for a loan or improve the score and then get going.

larry · Joined: 27 Jun 2007 Posts: 3328 473.51 Dollars($)

Hi Paul,

Welcome to the forum.

There are many loan options for first time buyers. One of them is FHA approved loan which is a good option for first time buyer as it allows you to make less down payment and you can also qualify with your poor credit.

But, I think as you will make the purchase in 2008, so there is some time within which you can develop your poor credit. and thus you can qualify for a favorable loan.

ezmortgageloanz · Posted: Tue Sep 18, 2007 1:41 pm Post subject:

It's difficult to determine what your debt-to-income ratio is, but I'd have to agree that a FHA loan might be your best option.

Regards,

Scott Miller

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