How to get a home loan and start paying on bad debit?

Daisy asked:


My spouse and I are wanting to purchase a home. We pay our rent every month so we should be able to pay a house payment. We have some very bad credit issues in the past and would like to take care of them either by settling or paying the debt off slowly. But how does one go about this? I know I can get a government loan if I start paying on the bad debt, but companies want lump sums and dont want to work with us. They demand payment now and dont’ care otherwise. Any suggestions?

Juan

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4 Responses to “How to get a home loan and start paying on bad debit?”

1. Bill P Says:
   March 27th, 2009 at 3:45 am

   Glenn

   So you wantr to GET A LOAN TO PAY A DEBT? Isnt that what a loan is? a debt. Depending on the debt, you can send them payments. They will send you a cash pay offer for a lower amount eventually but they will want cash as you said. Just tell them you can pay $xxx monthly. If the debt is a medical. it wont count a lot on your home loan unless it is a large amount.

2. chrime t Says:
   March 30th, 2009 at 2:02 pm

   Manuel

   There are hundreds if not thousands of websites on the internet enumerating the ways to apply and receive home loan when you are plagued with bad credit issues. These sites help consumers with bad credit scores to increase the viability of their existing credit scores and set up loans regardless of their credit history.Companies that specialize in bad credit home loans; usually offer a wide range of options for consumers with bad creditBad credit hasn’t stopped them from purchasing a home. There are several programs available for people with bad credit that helps to restore their credit status and to live debt free lives.

3. Mountain Bear Says:
   March 31st, 2009 at 5:21 am

   Lillie

   I’ve worked hard to have excellent credit on a very low, low income.

   Get yourself out of debt before you get into a home or you are likely to just have more and more debt.

   One, if you are trying to work with creditors and they refuse to work with you, take their phone calls so you can show that in court. Refuse to talk to them unless they allow you to take the call. There are new laws that say that any reasonsable offer to work on reducing your debt, must be accepted. Working with a state agency for credit reduction is best. Go online for your state and look up: State Assisted Debt Reduction. DO NOT, DO NOT pay some company to help you. If you go with a state one, the fee per months is like usually 12 to 20 dollars. All that does is pay the person who does all the work for you. They charge you one fee per month for all your debt. They then get each creditor to agree to not add any more interest, to accept so much on the dollar. Most will attempt to get your debt down to where it won’t take mroe then two years to pay it off. Doing this also saves your credit rating and actually as you pay on time it ups your score. I had a friend who had 1,000 in outstanding debt. She was charged through the state agency 100 per month, and only 12 of htat was a fee, the remaining 88 dollars went to paying off her debt.

   You will be expected to sign a paper saying you will not take out any credit of any kind, in store or other until you are out of debt.

   I’d recommend learning to budget as well. Poeple just don’t live within their incomes. I live on 700.00 per month and pay 465 in rent, yet I stay out of debt. It means learning to go without things you do not need. People often think they need dinner out once or twice a week. A coke or coffee each day. Something new to wear each month.

   YOu’ll find if yoiu learn to make a budget that both you and your husband can live off of, get out of debt, you’ll actually save a lot. Learning to sasve for things you want and paying cash, means when you buy something it’s yours, without interest and no one can come and take it away if you don’t pay off a loan.

   After you get out of debt, learning the key that you never buy a home that the monthly payment will come to more then 1/3 of one persons income, not two incomes. That way, if something happens to one of you, you’ve learned to live off the one income when it comes to the inportant things. If you can’t live off one income for all your major things, Rent or Morgage, Food, Clothing, Water and Gas, Lights, Phone, Internet, Car, Gas and money budgeted for car repairs so you have some set aside when things go wrong with the car, so you won’t have to go into debt to fix the car.

   So get in with someone and get out of debt before you go into a home. Then when you think of buying a home, you can’t say becuas eyou can afford rent, you can afford a home. You have to add into monthly expenses once you own a home. Money for repairs that always need done. Money each month to pay your taxes on the home each year. Renters normally do not have to have insurance, so you’ll need to add in home owners insurance. You’ll need to add in yard care, water, buying a mower and other yard care tools. You’ll have the added bill of sewer and garbage, water, etc. All these you should consider that in addiction to the house payment, you’ll be spending about 400.00 more each month, at least, for the added expenses of owning a home. That 400.00 is on the low end, most when they add up all the expenses, average out between 800.00 and 1,200 more per month. You do not want to wait until taxes come due each year and wonder where the money is going to come from. Also, taxes usually increase each year.

   Good luck. Get out of debt, then really look at every bill you’ll have once you own a home. Do not get an adjustable rate, get a fixed, that way you are not going up and down with the market. Make sure you can take care of all necessary expenses, including food and personal necessities on just one income. If you can’t, consider saving at least 1/4 of what you’d pay on a home, so that when hard times come, you an still pay the house payment.

   Take care and I hope it all works out for the two of you.

4. Quicken Loans Says:
   April 3rd, 2009 at 3:28 am

   Jeff

   Hello, I’m pretty sure you know that your credit score and credit history are very important factors when it comes to obtaining a mortgage that best works for you.

   I do not recommend you take out a loan to pay your debts, however, I do recommend you and your husband consider taking some steps to re-build your credit such as slowly paying your bad debts off in order to increase your credit score. It’s going to take time, but it will be worth the wait when you consider that you’ll most likely receive a much lower interest rate on your mortgage loan when you’re ready to purchase a home.

   Finally, it’s not typical for creditors to refrain from working out a payment plan. I suggest you continue to call and ask for a supervisor if you need to. I’m sure someone will work something out with you.

   I hope this ansers your question. Good luck!

   I have included a link with great information regarding help with improving credit scores.

   I hope this answers your question. Good luck!

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