Suggestions on getting loan for home when bank says no

I don't want to sound negative, however, it may be that you simply need to resolve all credit issues and save money for a while longer. Is there any way you can increase your income? There will always be terrific places to follow your dream.

_Not_ to try to judge, as it could be medical or a dozen other issues totally not of one's making, but just in general:

Credit issues are usually because of too much spending, not to low an income.... Without more info (& I'm not prying, not something I need to know...) it will be hard to help this person. If the credit issues are still around, it will be very difficult to get a loan from anyone.

If this credit issue has been cleared up, or if it was a case of medical or job loss or the like & the the issue is clearly being recitifed now and in a timely manner, then it will just take a lot of effort & searching the above sources to find a lender who understands & is willing to work with you.

If it's credit cards that got out of hand, every lender is going to run screaming away.... Bad sign....

--->Paul

Another option is looking for another property where the owner will hold the mortgage. If you default, they get their house back. Look for a lease with option to buy. Some people want guaranteed income over time rather than a lump sum. If you lease it for a year that gives you a chance to show that you can make payments on time.

There are lots of properties out there, and sometimes things just aren't meant to be on a certain place. If the owner wants to cash out to buy another place, you either have to have the cash yourself or get a loan from a bank or credit union. And yes, there are so-called "hard money" lenders, but you will pay a lot more in interest, and chances are because of the higher payments you would lose the place eventually anyway.

My rule of thumb is, "If I can't pay cash, I can't afford it." Save until you can pay cash and be prepared to not have a lot of items you didn't need anyway.

Has anyone here ever sat done and thought about how much more you could have had if you had never paid any interest?

Haggis @ Wolf Cairn Moor

While it's a good rule for most things does it make sense for a home? If you don't live in a house you have to pay rent. Rent is something you'll never get back, so it's a cost just like interest is. Let's make it real simple and ignore tax breaks due to interest for a second. Using the financial equations with mortgage value, interest, and number of payment periods you can easily calculate the amount of interest you're going to pay. On our property it's close to $30k. Look on the web you should be able to find some calculators that will do the math for you.

Renting an apartment out here costs $400/month. What would the cost of the apartments be over the time we have our mortgage? $72k. This is assuming rent won't increase.

So should I save the entire value of the house then buy it? I'll save $30k but spend $72k on rent. Now a home isn't for everyone, but if you afford it, then it does.

My 2 cents.

might want to get a Hud loan this is how we bought are first housr it came with 2 morgages a month but we have are own house are 2 paymaent equal 680.00 a mounth going to 2 lenders we could refinance in four yrs after we got the house but I've hurt my back at work and have been off for 3 yrs and make sure you buy the insurance that pays your bills if you get hurt take it from someone who didn't and now wishes he did also check with Fanny May foundation

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Spelling and Gramer subject to screw ups I'm not perfect. Later MAtt

Work to bring those "problems" into a "solved" status. Maintain good rent/mortgage payments for at least one year and this will help a lot towards getting a mortgage. The WORST payment you can be late on when applying for a mortgage is your rent/mortgage payments.