I have bad credit and i am trying to buy a house with no money down i have a question?

Corinne
I have heard that in many cases when people have bad credit, the home owner "will carry the loan". What exactly does this mean and does this actually work? I need help, I am trying to buy the house that I am renting. The owners don't want to rent anymore. I need help PLEASE!!!-I have a credit score of around 590.-I don't have a down payment.-I don't care about high interent rates.-I just want to get into this house.-I will refinance later if necissary.

Dreama
The seller "carrying the loan" means that instead of making payments to the bank you will be making payments to the homeowner. Ask them if they would consider a lease/option or rent to own.If you go this route make sure to have a good real estate attorney draw up the paperwork, otherwise you may run into problems down the road.

Carlita
Don't lose hope if you're looking to buy a home. There are so many different ways to fund a home now, just about anyone with any kind of credit can get into a home, regardless of credit situation.Of course, some will cost you more money in the long run, but a home it's still one of the best investments that you can make, so, in many cases, it's worth it, especially for the first year of ownership.You should shop around, and ask different lenders what kind of programs they have, and if they can help. Try to find a lender that specializes in bad credit mortgages. You can find some bad credit mortgage lenders listed on this page on and off: http://tiny.wackyb.net/K2rP/odtl

Oliver
I would suggest going to a broker. A broker will do the work for you search for the loan that fits you and if they are good get you into something with an ok interest rate. Good luck.

Haydee
Well as in "carry the loan" they may be actually talking about a contract for deed. Most Lenders require Contracts for deeds (also called rent with option to buy, lease option) to be recorded with the county.You would actually do this as a refinance (provide 12 months cancelled checks or money orders) factor in the payoff the land lord wants and you can go off of the current appraise value (this will allow you to cover closing costs, pay off debts, get cash out etc).There are some lenders that will take an unrecorded land contract and get the deal done. The key is finding that lender. You are welcome to message me if you have more questions or you'd like me to take a look at it for you!

Echo
Chances are that if you have bad credit, you're going to have a very hard time getting a loan. You should most definately be concerned about high interest rates! This is how people end up with foreclosed homes! That would definately screw up your credit even more!I'm not too sure on what the specifics on "carrying the loan" is. Sorry I'm of no help there.I would suggest on building your credit then consider getting a house.

Chandra
Find a mortgage broker that specializes in FHA or Fannie Mae's "My Community" mortgage. I have closed many loans for my clients with scores less than yours. We are talking 30yr fixed mortgages with rates in the mid 6% range.

Suzann
Owner carry means that the owner will allow you to pay them for the house. No official lending institution is involved. The problem is that for an owner carry, they will check your credit and want a down payment. I have never heard of owner not requiring these terms. And owner carries on a home are fairly uncommon in my area. If you have been a good tenant, maybe your landlord will consider an owner carry. Good luck.

Hung
just to let you know, i too have poor credit, a score of 580. 2 weeks ago i decided to try and apply for a home loan, i recieved a loan through FHA for 200, 000 with no money down if needed. I am putting down 3% but have the option not too. Its totally different buying a house, 3 weeeks ago I applied for a motorcylce loan and was denied, but week later got the home loan. Go and apply, at this point you have nothing to lose. There are so many options out there. GOOD LUCK