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Bad Credit Mortgage, 70% LTV

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wingsfan92

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Okay, this is what we want to do.
I don`t have good credit, I did up until I lost my job & had kids, ( a few years ago)
We want to purchase a house for 70,000, the original asking price listed was 99,000, and we have basically talked them down.
Is there any way to structure this so I can get it as a Home Equity with no credit check?
I have income to make the payments, and I am trying to fix my credit (speaking with a bankruptcy trustee about payments)
But I am sick of throwing money away for rent.
My other question is if I registered a corporation and got a mortgage through the business would they still pull a personal credit history?
We`re a family of 5, and we really want to figure out a way to get into a home.
We live in Nova Scotia if that matters
 
wingsfan92, your options are limited, but you do have some.

Even if you purchase via a corporation a lender will almost certainly ask for a personal guarantee on the loan and pull your credit score.

You may be able to get seller financing for all or a portion of the house price. You may find a lender willing to loan to 50% or 60% LTV with your credit and get the seller to carry the difference between that and your downpayment amount.

Sounds like you may be a good candidate for a lease to own situtation. Put some money into an option deposit, make regular rent and option payments, then qualify for a new mortgage with your improved credit score in 1-3 years. Meanwhile you get to live in the house.

A couple things you should do next:

1) Get working with mortgage broker, hopefully someone who has experience working with people who need to rebuild their credit.

2) Get in touch with a lease-to-own specialist and see how they can help you.
 
QUOTE (wingsfan92 @ Jan 9 2010, 12:32 PM) Okay, this is what we want to do.
I don`t have good credit, I did up until I lost my job & had kids, ( a few years ago)
We want to purchase a house for 70,000, the original asking price listed was 99,000, and we have basically talked them down.
Is there any way to structure this so I can get it as a Home Equity with no credit check?
I have income to make the payments, and I am trying to fix my credit (speaking with a bankruptcy trustee about payments)
But I am sick of throwing money away for rent.
My other question is if I registered a corporation and got a mortgage through the business would they still pull a personal credit history?
We`re a family of 5, and we really want to figure out a way to get into a home.
We live in Nova Scotia if that matters

I would suggest finding an investor with a rent to own deal.
Why? They will work with you to repair your credit, you will more than likely get you into a nicer home and in an area of solid demand and appreciation in values. It would be a win-win deal.
Post the question on here looking for investors with RTO homes in your area and work with them.
Or find a mortgage broker who works with investors and work with them, naturally do your own due diligence on them first.
In my mind that is a better route than simply buying a cheap home to get back into the market.
 
QUOTE (EdRenkema @ Jan 9 2010, 02:11 PM) I would suggest finding an investor with a rent to own deal.
Why? They will work with you to repair your credit, you will more than likely get you into a nicer home and in an area of solid demand and appreciation in values. It would be a win-win deal.
Post the question on here looking for investors with RTO homes in your area and work with them.
Or find a mortgage broker who works with investors and work with them, naturally do your own due diligence on them first.
In my mind that is a better route than simply buying a cheap home to get back into the market.

We are looking for a certain "quality of life" We are both fairly young but have realized much more than most people do, in their whole lifetimes.
We have learned how to live and work from home. Without having to do a 9-5 job or run a stressful business.
I`m not trying to sound cocky, but we have a budget with our expenses, we both work from home I`m a freelance writer, hubby is a forex trader.
We know how much we need to make, and we have been consistent in living without working a conventional job.
If we purchased this home our total housing costs would decrease by $500 per year. (Included heating, mortgage at 8%, etc) I have used a detailed budget to account for all expenses.
The house is actually beautiful, and has been extensively renovated, it`s landscaped on a nice property. It`s approx. 15 from the house we are currently renting. We are sure we can add value to this home by adding a garage, shed and playhouse for our kids.
The other homes in the area that have been upgraded sell in between $100-150k range.

We`re basically looking to find a private lender for the full purchase price (70k) It appraises at 99k
We will pay anything needed, ie legal fees, transfer tax, etc.
I want to know if it is possible if there is anyway to structure this. I have spoke to a couple mortgage brokers, but they aren`t very helpful.

Any help is appreciated
 
QUOTE (wingsfan92 @ Jan 9 2010, 02:49 PM) We are looking for a certain "quality of life" We are both fairly young but have realized much more than most people do, in their whole lifetimes.
We have learned how to live and work from home. Without having to do a 9-5 job or run a stressful business.
I`m not trying to sound cocky, but we have a budget with our expenses, we both work from home I`m a freelance writer, hubby is a forex trader.
We know how much we need to make, and we have been consistent in living without working a conventional job.
If we purchased this home our total housing costs would decrease by $500 per year. (Included heating, mortgage at 8%, etc) I have used a detailed budget to account for all expenses.
The house is actually beautiful, and has been extensively renovated, it`s landscaped on a nice property. It`s approx. 15 from the house we are currently renting. We are sure we can add value to this home by adding a garage, shed and playhouse for our kids.
The other homes in the area that have been upgraded sell in between $100-150k range.

We`re basically looking to find a private lender for the full purchase price (70k) It appraises at 99k
We will pay anything needed, ie legal fees, transfer tax, etc.
I want to know if it is possible if there is anyway to structure this. I have spoke to a couple mortgage brokers, but they aren`t very helpful.

Any help is appreciated
Given your credit history, and the fact you are self employed, you will be very limited in your options.  RTO as mentioned here will be one of your only options.  A vendor takeback mortgage may be another.  But given your history, employment situation and current credit environment, you will have a very difficult time getting a conventional mortgage.
 
RTO is the way to go for you.
Or
You find private money, but when you do not have skin in the game (cash) the rate will be higher than 8% may be closer to 12%.

If you can do a RTO with a local investor you will probably need to come up with approx. 3k as a deposit.

Good luck,
 
Mr. Wingsfan92,
I can totally relate to your dilema. I have recovered from bad credit days and beleive me it`s pretty amazing when you do. During the time that I was down, I was financing a lot of my investment properties with private lenders or a company called Home Trust. http://www.hometrust.ca/mortgages.aspx Now since we are out of our bad credit times, we can qualify good financing from the conventional lenders and our cash flow and increased tremendously. Before you make a move on your credit situation, I would qualify the mortgage first with either the private lender or Home Trust Company, and then pull the triger on procedure to fix up your credit. Keep in mind that you may be down for 3 to 5 years so you want to qualify as good a fixed rate product as you can...
 
A related question if anyone knows - Would a lender use income from forex trading when applying for a loan?
 
QUOTE (JimWhitelaw @ Jan 9 2010, 01:10 PM) wingsfan92, your options are limited, but you do have some.

Even if you purchase via a corporation a lender will almost certainly ask for a personal guarantee on the loan and pull your credit score.

......

2) Get in touch with a lease-to-own specialist and see how they can help you.

wingsfan92, I would say you are on the right website with the wrong post.

Create a new post stating you are looking for a rent-to-own investor in your area with whom you can work to obtain your target property. Set up a rent-to-own agreement making it a win-win for both of you.
 
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