With a credit score below 600 it’s going to be difficult to find financing. With a score in that range it means you have unpaid accounts or foreclosures/repossessions that are hurting your score. All this will be reflected on your credit report, which any FHA lender can give you.
Your best bet will be to apply for low LTV financing on a modest home. If you only have $6k, you’ll likely need that for moving expenses, so find a seller who will loan you 20% of the sale price and then get 80% from FHA. It might be that you still have to find 3% somewhere, so either your $6k will come in handy or you can get a concession from the seller or from a down payment assistance program.
Another option would be to get a lease-purchase, where you lease the home but can purchase it in the future. If you’ve been in a house for 12 months and made all your payments on time, it will be alot easier to purchase, even with bad credit.
2011/08/15 at 20:53:42
With a credit score below 600 it’s going to be difficult to find financing. With a score in that range it means you have unpaid accounts or foreclosures/repossessions that are hurting your score. All this will be reflected on your credit report, which any FHA lender can give you.
Your best bet will be to apply for low LTV financing on a modest home. If you only have $6k, you’ll likely need that for moving expenses, so find a seller who will loan you 20% of the sale price and then get 80% from FHA. It might be that you still have to find 3% somewhere, so either your $6k will come in handy or you can get a concession from the seller or from a down payment assistance program.
Another option would be to get a lease-purchase, where you lease the home but can purchase it in the future. If you’ve been in a house for 12 months and made all your payments on time, it will be alot easier to purchase, even with bad credit.