Hi there my family and I really would love to buy a home. There are hardly any rentals available. Our only problem is is that we’re repairing our credit and we don’t have any money to put down. Is there anything we could do?
We live in Canada btw.
1- That criteria is what got the US into this whole bad mortgage, then sagging economic mess that we are in now!
Use this simple framework: if a deal sounds too good to be true, then it is, and you should avoid it.
If you buy a home with $0 down, and with bad credit- you will be considered a HIGH RISK buyer, and thus you will receive a HIGH interest rate on your mortgage, and thus HIGH mortgage payments. It will take you quite a while to pay down the interest, because it will add so much more money to the loan, that you won’t even be able to pay down the principle amount (the cost of the house) for quite some time, rendering your bank as the owner of the house for a majority of the mortgage.
When buying a house, you should make sure you put at least 20% down and have a decent, if not great credit score to make sure that you don’t waste a lot of money paying interest, which means that you will pay down the principle quicker, and will build equity quicker.
If you buy a house at $0 down with bad credit, you will likely default on your mortgage because everything will end up costing you more money.
Even if the deal comes up, DON’T DO IT!
October 14th, 2008 at 1:58 pm
1- That criteria is what got the US into this whole bad mortgage, then sagging economic mess that we are in now!
Use this simple framework: if a deal sounds too good to be true, then it is, and you should avoid it.
If you buy a home with $0 down, and with bad credit- you will be considered a HIGH RISK buyer, and thus you will receive a HIGH interest rate on your mortgage, and thus HIGH mortgage payments. It will take you quite a while to pay down the interest, because it will add so much more money to the loan, that you won’t even be able to pay down the principle amount (the cost of the house) for quite some time, rendering your bank as the owner of the house for a majority of the mortgage.
When buying a house, you should make sure you put at least 20% down and have a decent, if not great credit score to make sure that you don’t waste a lot of money paying interest, which means that you will pay down the principle quicker, and will build equity quicker.
If you buy a house at $0 down with bad credit, you will likely default on your mortgage because everything will end up costing you more money.
Even if the deal comes up, DON’T DO IT!
References :
Finance and Economics major with a minor in Accounting at DePaul University-Chicago. GPA 3.8/4.0- Junior.
October 14th, 2008 at 2:05 pm
NO!!! You have bad credit because you do not pay your bill. You have no money to put down or to pay for closing. Why would you even think you could buy a home?
References :
October 14th, 2008 at 4:17 pm
Your only problems are the reason this isn’t going to happen.
You have to bring something to the table, money down or a great credit score. With neither of those things in place, you are not going to get a mortgage.
References :
Oregon Realtor