Is there such a thing as home loans based on wages rather than your credit?
Is there such a thing as home loans based on wages rather than your credit? I don’t have good credit because of some old bills. I’m paying them off. My rent is never late. I make around $40,000+ a year (depending on overtime). Where can I go for this type of loan?
Nowhere, there is no such loan.
Loan approvals are based on a variety of information like, they will review your finances, such as income, job history, credit history and other credit factors.
$40k wouldn’t get you much of a house anyway. I suppose that depends on where you live a little though. Making money is no reflection on the likely hood of it being repaid.
things change daily. in the past they would ask for more down payment and pay a higher interest rate. but nowadays if you have been working at the same place for more than 2 years, and have at least 20% down they may look at you. your best bet is ask a mortgage broker but before they run your credit.It would help if you know your credit score already. also bear in mind that each time your credit is run it will lower your score, so that is why i say ask before they run it. also ask for a copy of your credit report from them when they do run it. it is good for 3 months. good luck. we are in the process of buying a house and we are self employed. it is very hard. we show low income. and we have an 800 score.(he said we would have a better chance if we had a minimum paying job) we have to have all our credit paid off showing zero. also they told me to close my credit cards. i refused. that action will lower your credit score drastically. so now we wait. they are making us jump through hoops. we had a house mortgage of 700,000 and never a day late. sold the house and now we are trying to get a 100,000 loan with 60,000 down. we just find it a joke the crap they are telling us because we are self employed. so good luck and ask.
there are government programs. FHA,FMHA, WHEDA,VA, HUD,etc. some may not be available in your area and it takes a long time. i bought a house in 88 with an fmha loan. very little credit history and no down payment. payments were based on wages on a yearly basis. interest was subsidized. be aware that when fmha decided i made enough and could get a conventional loan i had to refinance with a mortgage at a bank and i had to pay 10k in back interest to fmha.
Take a couple years to clean up your credit and start saving up for downpayment and closing costs.
Mortgage lenders will look at your credit history, stable work history, income, other assets, debt to income ratio, and other things.