traditional loans
Question
Is there such a thing as a subprime or low credit home loan anymore?
I am trying to help my sister. Her landlord gave her untill 10/1 to move (sucks because last week is was 10/15 but the landlord changed it to 30 days) because she needs to sell the place asap and is loosing money on the house... My sister is going through a divorce, she makes decent money but can't find loan through traditional sources. I am at a loss, where do people go for lower credit home loans, in this economy? She has the ability to pay a higher monthly payment, but her credit score is low. We even as a family have figured we can all pitch in a little bit to help her with down payment...With the economy the way it is, do these sorts of loans even exist?
3 months ago - 4 answers
Best Answer
Chosen by Asker
Subprime mortgages do still exist, but you need perfect credit to qualify for them nowadays. What your sister needs to do is address the issues keeping her credit score low. A debt management program may be what she needs to help with that. Otherwise she will need to find a co-signer for the mortgage or keep renting.
by Craig
3 months ago
Asker's Rating: 
Other Answers
No, the loans don't exist. You need a lot of cash and excellent credit ... you know, the way it used to be?
by zeuz- 3 months ago
The subprime and no down payment loans are gone.... Your sister needs to find another rental and move out into that. To buy a house you need anywhere from 3.5 to 20% down payment, a good to excellent credit score, no outstanding bills and a job history of 2 years or better. Of course... you also need the gross income to support the house payment. about 3 times your yearly gross income = the price of the house you can afford. Pitch in to get her in a decent rental and then she can start saving up for the down payment on her own. Don't rush this... She is under a deadline to move out... buying a house should be done at her own pace not with a deadline looming over her head and getting into the wrong house because she has to hurry.
by Reena- 3 months ago
If her credit is bad, no she won't be able to get a mortgage. Help her look for a place to rent. Good luck.
by Judy- 3 months ago