Home loans are especially the amount a mortgage lender would lend you to purchase a house would be based on your debt ratio.
Your ratio is arrived at by taking the amount of debts listed on your credit report you are required to pay each month. The formula require your mortgage under writer to add in the monthly mortgage payment. The underwriter would then take the amount of money you earn each month to pay these debts and the monthly mortgage payment.
Your debt ratio should not exceed 39%.
There are several mortgage loan calculators that you would be able use that would place you in the ball park of what your debt ratio would be.
The mortgage calculator would ask you questions/information, which you would be required to provide. Once this information is provided, the solution would default.
In some instances you might be able to save your information for future use.
You would need to obtain a copy of your free credit report to find out if you are late in making any payments of your debts.
This credit report would also indicate if there are unpaid debts listed that would fall off your credit report on a certain date.This is important, because as bad unpaid debt fall off your credit report, you credit scorew would increase.
I hope this has been of some benefit to you, good luck.
"FIGHT ON"
My credit score is 825. Do you want to borrow the 825 from me? First, I would have to check your credit, to make sure you would pay it back.
Of course I'm just being silly saying that. The real answer to your question is that you want an owner-financed house. An owner who has trouble selling his house, will sometimes provide the financing, to motivate someone to buy it. But first you have to ask yourself, what's wrong with the house, that nobody will buy it? So you have to be extra careful checking it out. Maybe he just got unlucky and nobody happened to make any offers on it even after it was on the market for a year. Or maybe he has a lot of money to invest and wants a high interest rate from you.
One thing that would help you a lot would be to have a big down payment. How much can you afford for a down payment?
In any case, even if you have bad credit, and find someone to provide you with a mortgage in spite of that bad credit, they will still want to know the details of your credit. In other words, the issue is not just whether you have bad credit, but also how bad it is. Anyone who would write a mortgage without even checking your credit would be so rare you could look hard for 100 years and never find that person.
These types of loans don't exist.
But FHA is the one loan program that is least concerned with credit. All it requires is a score of 620, paying off all your derogatory credit (people who you already owe but aren't currently repaying) and 12 consecutive months with no late payments to creditors you are currently repaying. Plus FHA only requires a 3.5% down payment.
They used to do loans based on self reported income. They were one of the main causes of the crash in 2008 that cost the US government over a trillion dollars to fix. If they are not illegal yet they will soon be.
Rare, since your present income isn't not an indication of how well you treat money. There are many people with ample income who are horrible credit risks, especially if its the first time they have money. They tend to overspend badly.
Such a loan does not exist. Have a high salary does not mean you pay your bills.
Any one knows of any house loans that go based on how much you make not credit I am working on my credit but looking for a home..
