Buying a house with bad credit and 20 down!

So you want to know how to buy a house with bad credit and 20% down? The things we will discuss in the following paragraphs is about the possibility of being able to purchase a home when your credit is not so good.

One of the things that you still want to do is make sure that you are working to increase your credit scores.

What we going to talk about right now is how to purchase a home if your credit is in the 500’s. Keep in mind there are not a lot of lenders who will be willing to loan you money at this credit score.

Also understand that the terms and conditions are not going to be the best interest rates. Although someone might be willing to tell you yes, the interest rate on the loan it’s not going to be Stella rates.

buying house with bad credit

The ability to get a loan is going to depend on the market.

The market is what determines whether or not you are able to get a loan with a low credit score. If the market is good then lenders will show leniency on the guidelines to obtain the loan.

When the market is bad, lenders will tighten up the guidelines. For example, if the market is doing great and the stocks are up you will see the decrease in interest rates and mortgage rates.

But as soon as the market dips or the market becomes bad then you will see the interest rate increasing.

So what you have to realize is that you’re going to hear a lot of No’s before you hear a Yes.

As long as you understand, then your goal will be to find a lender who will say yes.

It’s going to be a process. You have to think of it as a journey and along this journey your goal it’s make it to the finish line.

And that’s what I want to see you do. I want to see you make it to the finish line of having your dream come true.

Remember home ownership is in your grasp.

All you got to do is be willing to say yes to the process. I know your wondering where you going to go from here?

That’s a good question. If you found this page then it’s going to be a bless to work with you to help you get where you want to go.

I’m sure you know that you will have to roll up your sleeves and do some work and just do a little research and you’ll come to find there are going to be some lenders who will say Yes.

Ways to get the home

What you need to do is find a lender who is willing to loan you the money at about a 580 credit score.

If the market is bad the credit score might have to be higher for you to qualify for the loan. That’s why it’s a good idea to read the article start buying a house with bad credit.

In that article we talk about ways to increase your credit score and that’s the goal that you want to achieve overall.

What you want to do is check your score on Credit Karma and find out what your score is. Once you have the score subtract about 30 points from that score.

That will give you a summary of your credit score. Next you are going to call up lenders or call up Mortgage Company’s  and you are going to ask them what is the minimum credit score requirement.

If that lender tells that their score has to be in the high 600 tell them thank you very much and you move on to the next one.

The goal is to find lenders that would do the credit score in the 580’s.

If your score is lower than 500, the alternative to this will be to look for a owner who would be willing to do owner finance.

If the lender tells you yes they do 580’s, then your next question is what are the terms and conditions.

This is very key because you want to know what the terms are. Sometimes it might be that you can’t have like so many late payments.

Are you can’t have any late payments.

When you find that lender that’s when you let them know that you have 20% down. If you need help feel free to contact me if you are in the Dallas-Fort Worth, Plano, Frisco, Irving or surrounding areas.
Another solution to this would be to try to find a hard money lender. I want you to understand a hard money lender will look at credit scores but might not be so  harsh on the credit score.

They will mostly likely look at the property itself.

For example you have a home that you’re looking at and the house prices is $200,000. The investor or the hard money lender wants you to buy the property at a discounted rate.

Each hard money lender is different and you need to ask them what their criteria’s are.

Hard money lenders interest rates are higher than normal interest rates so that means the interest rates could range around 9 to even 12% interest rates.

It still depends on the market rates and it depends on the market and what the market is at that time.

If you do not like the high interest rate then it would be better for you to work on your credit, raise the scores and get a lower interest rate.

What you would do is if you purchase the home with a hard money loan you typically would have 12 months before it’s due back to the hard money lender.

So within the 12-month time frame you would need to be working to fix your credit score. Your goal will be to raise the credit scores to the high 600’s so that you can refinance the property. When you refinance the property, you will pay the investor off and you lower your interest rate.

First time home buyer with parent cosigner

Another way that you can purchase a house and you have bad credit is you can seek out a cosigner on the house.

What a cosigner will do,the cosigner will be the person who will be mainly responsible for the house or responsible for the mortgage payment.

They are considered your co-signer. This  is the same thing that they do is the car industry.

So if you are a first time home buyer, you have no credit score, or you have bad credit and you’re looking to buy a house. You can have your parent(s) or grandparent(s) cosign on the house.
What you want to make sure you do, is make sure that you work on your credit scores.

You want to work to get your credit scores higher. The goal is to refinance the house at a later date or ask the mortgage company for a qualifying assumable packet.

This is how you get the cosigner off the debt of being responsible for paying the mortgage.

Can I Co Sign A Mortgage If I already have one.

This is another question that comes about in case you are a parent or grandparent and you want to help your grandchild or your children by a home.

Can you you co-sign on a mortgage if you already have one? You can, but it all depends on your debt to income ratio.

If your debt to income ratio is low then the answer to question is yes you should be able to qualify for it, as long as you can provide the mortgage lender or loan officer proof that you make enough income to carry both properties.

If for some reason your debt to income ratio is too high then you won’t be able to cosign on another property.

The key to having a cosigner on the property is you have to make sure that you are going to be responsible enough to take over the payments when it’s time to take it over.

Or you have to make sure that you are working on your credit to get your credit score’s up so that you will qualify to be able to refinance the house or do a qualifying assumable on the mortgage.

Are there any bad credit Realtor(s) near me?

This is another question that you might ask yourself. Are there any bad credit realtors near me who are willing to work with me and my bad credit?

The answer to this question is are you willing to raise your hand and say yes to a realtor who will work with you?

Are you willing to put in the time, the effort and are you willing to commit to the realtor once the realtor gets your credit to a level of being able to get the loan approved?

If you say Yes then there are Realtor’s and Real Estate Agents who will work with you.


In conclusion the possibilities are there when you’re trying to buy a house with bad credit and you have 20% down.

You have to make sure that you talk to a lender who understand your situation. Remember if the market is not so good the lending rules will tighten up.

If the market is good the Lending rules tend to be more relaxed. Also keep in mind that buying a home is a process and if you stay in the process you will get to the finish line of owning your next home.

Sell or Buy Your Next Home in Dallas FT Worth Tx Area!