Does anyone know of a morgage company that will allow bad credit?

Question

My husband and i are looking to buy our 1st house but his credit is not all that great and i dont have credit at all--anyone know who we can go through to get out loan?

Answer 1

If you two are willing to wait a while, you could get a secured credit card and start building your credit... after a year or so, you may be able to get the mortgage in your name. It's a good idea to have him improve his credit if at all possible. If nothing else, pay down all debt he has, because that's one of the first things a mortgage broker will look at, along with income. Make sure that you don't have to stretch to make payments... the last thing you need is a foreclosure!

Also, try to save for at LEAST 20% downpayment to avoid paying PMI (private mortgage insurance)... the cost of PMI really adds up! There are some sub-prime lenders out there, but it's a much better option to wait a few months and improve your credit scores (well, create yours and up his).