Buy a House with Bad Credit
Buy a House with a Bankruptcy
New Information for 2013-2014
Are you fed up with making the monthly mortgage payments for your landlord--helping him get richer and richer--while you throw away your own hard-earned money?
Are you sick and tired of making payments month after month, yet having nothing of value to show for it?
Do you want to take advantage of low prices and low interest rates before they skyrocket again? Already real estate values are rising, and in some neighborhoods, multiple offers are coming in. The forecast is for home prices to continue upward through 2017 (Real Estate magazine). If you want to stop renting and buy a house, procrastinating will cost you more money. Get started on getting your piece of The American Dream today by reading every word of this article.
How Do People with Bad Credit Get Approved?
People with credit challenges can still buy a home, even now after the subprime mortgage meltdown. I have a copy of the underwriting guidelines written by the Federal Housing Administration proving this is true. You might be surprised at what’s in it! For starters, on page 2 it tells underwriters to check the borrower’s attitude toward credit. So yeah, your attitude counts. It goes on to explain exactly what to look for. Reading this information is like reading the teacher’s answer book. You will see how you need to present yourself.
Here’s another peek inside—some good news from Section 4155:
“A period of past financial difficulty does not necessarily make the risk unacceptable.”
Did you catch that?! Just because a person went through a period of financial hardship, it does not mean their application is unacceptable. The key here is the word past. If the lender sees that your financial difficult is behind you, that is one (of several) important keys to getting accepted.
“Major indications of derogatory credit, such as judgments, collections, and other recent credit problems, require sufficient written explanation from the borrower. The explanations must make sense and be consistent with other credit information in the file.”
Now you need to know what “makes sense” to an underwriter. And what “be consistent” means.
Warning: If you write a long, tear-stained letter, you will get denied. A sob story about how bad you had it and how unfair your situation was is not what they want to see. Also, dragging your children into the letter will NOT work! So don’t say, “I need a home for my children.” They don’t like that approach and will turn you down flat, because it is not their obligation to take care of your children.
What Works: I have templates of Letters of Explanation for Credit that have been proven to work. You can use and copy these letters. There is one for different financial situations, such as bad credit due to divorce, medical reasons, or other circumstances.
Now you see why some people are delighted to learn they qualify for a home loan now, even with a bankruptcy or other negative credit on their reports!
Let’s be realistic. I am not saying everyone can get approved instantly—I could not and would not make such a promise without seeing your credit report or knowing your situation, including whether or not you have the income to support a mortgage payment. So yes, some people may need to take a little more time to build a positive track record or to get employment. I cannot predict which category you fall into; but either way, wouldn’t you like to know? More importantly, wouldn’t you like to get started on the path to buying a home now, before prices go higher?
What You Need to Know
The section I quoted from above is a small part of 23 essential pages written for underwriters that do the loan approvals. If you are tired of being a victim of rejection and want to be in control, then you’ll want to get your hands on these 23 pages. You can get them for free, and I’ll tell you how in just a moment…but first, a heads-up.
Don’t Make These Common Mistakes
1) Don’t waste your time applying with a big national bank, because banks have the strictest rules, and they want to approve only the borrowers with the best credit.
2) Don’t click on Internet ads, because those are lead generation services that sell your information to banks and lenders who are “cherry picking” the best applications. Not only is it a waste of your energy, but it also has the potential to lower your credit score when you get multiple inquiries to your credit report.
Read This Before You Email Me!
Every day my email filled up with people pleading for help. They wanted to know how to buy a house, even though they had some bad credit. I was spending my entire evenings, often until midnight, sitting at the computer answering these good people.
And now, I want to keep helping folks, but I can’t keep up with the emails. That is why I created an instant download e-book with all the information you need called, How to Buy a House When You Have Bad Credit.
Simply open it with one click and save it to your computer to read and keep. Print it out, if you like. Do not send me an email asking me how you can buy a house with your bad credit until after you have read this information completely through. The vast majority, if not all, of your questions will be answered there.
But if you do have a question after reading, then please feel free to send me an email, and I will personally answer you.
When you download the e-book, you will also receive the 23-page credit guide for underwriters free, as a bonus. This is insider information the public does not have access to. It tells how the lenders are supposed to analyze your credit, including:
- Past credit performance
- Analyzing credit history
- Documenting delinquent accounts (Give them the documentation they want!)
- Lack of established credit history (How to compensate for it.)
- Verifying non-traditional credit (When a person doesn’t have enough credit on their report.)
- It even talks about analyzing your attitude. (That does not mean being polite.)
- E-book is 99 pages, 8 ½ x 11. PDF format.
- Not sold as a paperback, e-book only. No postage or handling fee. Instant download.
- You can read it on your computer or print it, as desired.
- Affordably priced at only $7.95.
After reading, if you have a question, I will personally respond to your email, usually within 48 hours or less.
Credentials
Carolyn Warren has appeared in…
Carolyn Warren has spent over a dozen years working for some of the largest national lenders, including Countrywide/Full Spectrum Lending, First Franklin Wholesale Lending, Guaranty Bank, and Alpine Mortgage Services.
Her experience in mortgage retail, mortgage wholesale, and mortgage brokering means she knows all aspects of the mortgage business—including how people without perfect credit get approved for home loans.
Her bestselling book, Mortgage Rip-Offs and Money Savers (Wiley & Sons) has been in the top five Amazon books in the mortgage category.
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