Will I be able to get a mortgage with bad credit? I have 40K as a down pay for a $120 K house?

I want to know if I will be able to get a mortgage from anywhere even though I have very bad credit from the past. I have $40 K for a down payment and the houses I am looking at are around $120k. I do have a full time job grossing $700 a week so what am I looking at here?

Public Comments

1. As long as you cleared up your debts, it goes by your credit score. That is a "huge" downpayment, I'm sure you will be able to find financing, If I were you I would go through a "mortgage" company, not a bank. They are very easy to work with and will find someone to finance you. Mortgage rates change every Tuesday, so keep that in mind.
2. Yes but you might want to wait 6 months before applying for the loan, do not apply for any other credit during that time either. Its not like housing prices are going to go up anytime soon.
3. If you have a bad credit rating you will need a cosigner that has a good credit rating.Then the property would more than likely be in the cosigners name.Also it does'nt matter how much money you make.
4. http://www.MyCreditEdit.com
5. Go see a lender for preapproval. That's the only way to know what you'll qualify for.
6. You could get a motivated seller to do a contract for deed. You and seller make up a contract setting interest rates and payments for certain period. Difference between mortgage and land contract is on mortgage you get deed when you sign; on land contract you get deed with contract is paid off.
7. freecreditreport.hotusa.org - try this service to boost you credit score before getting loan. After credit repair you can get the loan with minimal interest rate.
8. Just contact a mortgage broker and let them get you the best rate. Make sure you get a fixed rate open end which means you can pay down the mortgage without being penalized. On the first 15 years, you pay about 70% in interest.