Can I Buy A House If I Have Bad Credit? Yes Or No

Okay so me and my family are looking at buying a house in a couple months, but we're having quite the hard time coz we're still paying off a few credit cards and are really trying to make ends meet. my Question is, Is it possible for us to still buy a house even if me and my husband have bad marks on our credit reports?

Hi, Ladyinwaiting! :)

You can actually purchase a house while paying off your debts, but keep in mind that it may take a long and quite arduous process. For one, there is a risk of having a higher interest rate on your home loan, and your mortgage lender may have to lend you a lesser amt compared to the standard rates on the market. Having to pay a mortgage on top of all your other bills may prove to be financially straining on your part.

Hope this helps!

I agree with above.  It sounds like you shouldn't buy a house anyway if you're describing your situation as "trying to make ends meet".  If this crisis has taught us anything it rarely works out for people who move forward on homes they can barely afford. 

I think can buy house!

What you can do is repair his credit first before incurring any more debts.

-First, try to reduce your outstanding debts by paying off in order of priority: debts with high interest goes first.
-Bring down your balances and try to keep them low. Maintain your revolving debt to 50% of the available credit.
-Keep your old, unused, or rarely used accounts.
-If you must close accounts, do so gradually, spread them over seven months, and don't forget to check if they are reported as "closed by consumer."
-Once you are on the road to making payments, make sure that you are never delayed on your bills.
-Take care of your past due bills as quickly as you could.
-Speak with your creditor regarding the monthly payments, negotiate for them to be lower, and while you are at it ask him/her if he/she can remove charge-offs from your report (if there were any), another thing that you may want to ask your creditor is if he/she can erase your history of late payments, after you have re-started paying on time.

If you are having a tough time meeting your financial obligations right now, buying a home may not be in your best interests. For starters, as cheetoslover pointed out, the loan will surely be extended at a high interest rate if your credit is poor. And more importantly, as Guru explained, many people who are having a tough time financially and purchase a home anyway find that they made a bad decision.

Specifically, you run the risk of missing monthly payments to your mortgage lender, which is could put your homne in foreclosure. At that point in time you would potentially lose your home and would then have a foreclosure on your credit- one of the worst things that could appear in the eyes of future lenders you meet with.

I suggest getting control of the credit card debt and making sure your net income heavily outweighs your expenses before you seriously consider becoming a homeowner.

u can buy a house even u ve bad credit condition...or less money by the help of loan with bank ...and others too
u can return it with interest...

Yes, Priya is correct people with bad credit could still buy a home. However, the terms of the loan would favor the lender (high interest rate) and as I mentioned before you run the risk of falling behind if you are already having problems financially.

So, I want to reiterate what I stated before, as did Debt Guru, it does not sound like you are in a position to buy a home. I would wait until you have your finances under control, despite the fact that you may be able to get a mortgage at this time.

thanks, all, for your suggestions....... what do you think i should do at this point in time? would filing for bankruptcy be a good idea for us? like i said it's hard to make ends meet and we are hardly getting on by.... my husband works lesser hours and i only work part-time, we really need solutions for our problems. thanks veyr much...

I do not think bankruptcy would be a very good option for you right now, Lady in Waiting. I understand that you may be having financial difficulties at this point, but if anything bankruptcy should be your last option in clearing your debts. In the event that you file for bankruptcy, that will be reflected on your credit report as much as ten years. Lenders may also end up charging you a higher interest rate compared to other consumers who have never filed for bankruptcy, if you decide to reapply for credit in the future.