Can you purchase a house with bad credit? In the Washington Metropolitan Area? If so, How?

Question

Can you purchase a house with bad credit? In the Washington Metropolitan Area? If so, How?

Answer 1

Yes, the thing is you get a sub-par rate and that is more points which equals more interest which equals a higher payment. When you are getting loan from any major mortgage company, do not tell them you have bad credit, they will immediately turn you to the sub-par group and you will get a higher interest rate. Let them find out about it and then you can negotiate the points.

Answer 2

First Question, Why is your credit "bad" (Bankruptcy, Judgment, Collection, Reposession, late payments, over limits) The information in your files will determine your credit score on a range from 300-850. You will need a minimum score of 620 to get "normal" interest rates. 680 would be better.



If you haven't seen your credit reports then go to www.annualcreditreport.com and get a copy of your 3 credit files. Review them for accuracy and start disputing(or hire a reputable law firm) the inaccurate and unverifiable information in your credit file.



When you have "cleaned" up your credit files go to www.myfico.com/12 and get your real credit scores. It will cost you $45.00 but will give you the info you need to know where you stand before you apply for a mortgage.



Mortgage loan pricing is determined by the middle score of your 3 scores.



GOOD LUCK