Questions about Home Loans for People With Bad Credit

We received a question about home loans for people with bad credit. This reader has a bad credit situation and we will answer his questions in our next post about home loans for people with bad credit. He is applying for a home mortgage and found out that a dispute he had some time ago is affecting his credit score and making it difficult to find a mortgage with a decent interest rate.

Home Loans for People With Bad Credit Question to Debt Counselor::

My credit rating is below 500 although my debt to income level is only .3.  I had some trouble a while back with a company so I refused to pay them and they sent a notice to the credit agencies which caused my credit rating to nosedive. I have never missed a payment in my life and now I have this bad credit rating and want to get a home loan so that I can buy a new car. Do you think that this is the right way to go about getting a loan.

Do you currently have a mortgage? :: yes, and all payments are up to date

Home/Mortgage Loan Amount :: $75,000

Other Loans, Including Credit Cards:: None at this time, 2 credit cards with zero balance. We pay the charges to the cards in full each month on the statement due date.

Are you employed and for how long:: yes for 3 years

Your credit rating to be – excellent, fair, or bad? :: Bad as explained above

Gross Amount Per Paycheck :: $2500

Do you agree to have this information published online, without your PRIVATE information of course? :: sure, nothing to lose, just keep my SIN number and my name confidential.

Extra information here please (some detail)::

I am trying to buy a car and finding that it is very difficult to get a competitive loan for a car loan or a home loan with my poor credit rating. Is there anything I can do to get a better rate or ensure that I do not pay a lot of interest?

My wife and I are really frustrated about the bad credit rating since it was based on a dispute with a company who we wanted to return some items too. They would not take the returns and also charged us as well even though we did not want their product. When we refused to pay they reported us to the credit agencies. We eventually settled in small claims court with the company forced to take its inferior product back and cancel their invoice to us. Unfortunately the report to the credit agency still stands and they will not write a letter or do anything to correct this situation.

As I mentioned earlier we have never missed any kind of payment ever. We feel that this situation is very unfair, but there is nothing we can do about it.

If you have a question about debt, loans , mortgages or other financial situations, please feel free to leave a comment with as much detail about your situation as you can. We will try to answer your question in our next post. For more information about bad credit home loans, click here.

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