Chicago

[Aniello V.]

Hi i like to know if is possible buy a house for 66.000 with 20.000 dollars down payment. I have bad credit aand own a house already in wisconsin. witch im gone put it up for sale.

[Maria Zajczenko-Varela]

Hello Aniello,

Thank you for posting to our ZIP website!  I have forwarded your question to 2 different lenders I work with to see if anything can be done to help you.  Will let you know what I find out.

Enjoy your day!

Maria

[Maria Zajczenko-Varela]

Hello!

Unfortunately, here is the result of my lender contacts: the loan amount would be too low (some lenders do not lend under $50K) and your credit score is too low as well. 

Sorry...but remember, this is the answer for today.  Once you get your credit score up, your situation will change.

Good luck!

Maria

[Aniello V.]

Thank you Maria

[Ed L.]

With 30% down ,look into "hard money" loans and see if it makes sense. Interest is higher the traditional mortgage rates.

[Maria Zajczenko-Varela]

Thank you, Ed. Proof positive that where there's a will there's a way....

[Keith M.]

You can also look into a lease-purchase, or rent with an option. In either case, be sure to record your interest with the county clerk to protect yourself. In my opinion, the lease-purchase is the best way to go. Be sure that the contract is a simultaneous lease purchase agreement that gives you sufficient time to work on improving your credit score. I would ask for 5 years to the refinance date; however, if they give you less time (standard is 3yrs), be sure to have an escape clause of some sort. I would consult a qualified real estate attorney for help with the contract.

I hope that helps.

[Maria Zajczenko-Varela]

Thank you, Keith.  Another option to look into.

[Keith M.]

You are welcome, Maria. With all the small investors jumping into the market, and banks still reluctant to make investment loans, the small investors need buyers as much as people with less than perfect credit, and/or small down payments want houses. It is a win-win.

[Maria Zajczenko-Varela]

I totally agree. Thanks again!