Obtaining a mortgage with slow or bad credit

[elizzy]

I sold my home a couple years ago, just under the wire before foreclosure...Mortgage co. started proceedings.
These last 2 years I've struggled to repair my credit. It's not exactly bad but not good either. I've got a steady job and pay my bills on time.
There are 2 old judgements on my credit report that were paid and of course the mortgage payments that I was behind on.
Can I still get a mortgage?
I'm not first time home buyer, my apartments are going condo and I'm thinking of purchasing it. I've never been late with a rent payment and I'm a good tenant who is honestly trying to rebuild my life and credit.
What do you suggest? Should I just go and attempt to get a preapproved mortgage just to see?

[aaron]

You can almost always get a mortgage - it's just that your credit will affect the fees and interest rates available, and the range of lenders who will offer loans may be reduced.

[jeland27]

I work in the mortgage industry and you can not always get a mortgage. I work for a mortgage lender that do mortgage for ppl with slow or bad credit. If you want to get a mortgage go to a mortgage broker in your area and let them walk you through everything.

[mortgageguy]

It sounds like you live in Florida?? I'm also a mortgage expert and there are tons of those Condo Conversions going up in FL. As for your interest to buy your apt/condo conversion, you should have no problem at all given these few minor tips.

1. RENTAL DOCUMENTAION = Approval. If you can prove to your lender (12 months cancelled rent checks) beyond any possible doubt that you made your rent payments on time, you will get what you need *100% financing. Generally speaking, any credit manager is looking for a plausable reason to think you will pay your mortgage. By documenting your rental history with cancelled rent checks, you show them undisputable evidence that your rent was paid as agreed. This typically falls under what many lenders call a "Mortgage only/rent only" program where you are allowed 100% if you can document 12 months perfect payments.

2. Debt to income ratio maximums; If you are currently paying rent, your home mortgage payment will probably be significantly higher than you are accustomed to. Lenders will allow you to go to 50% and in some cases 55% total debt ratio. In order to calculate yours, take your estimated mortgage pmt, taxes, insurance, HOA dues, any all credit card minimums, car pmts, other loans up.. and divide that number by your gross monthly income. If you are over 55%, you need another borrower or a stated income loan if possible.