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Clayton Said:

Mortgage lenders that help people with damaged credit?

We Answered:

I sympathize with your situation. I made the mistake (or was basically forced into) a situation where my student loans went bad, because I could not afford 700 dollars a month, and I all 3 of my part time jobs within a month of each other, and my car died as well. Back then they didn't have to work with you on the loans, and they didn't.

Thankfully, after a few years I dug myself out, got my loans current, but my credit was very bad for years; as you know a student loan judgment is probably treated worse than a bankruptcy.

So for your situation, it is going to depend , are your student loans in payment or in default, or have you fully rehabilitated your loans?

The bottom line is, unless you are fully rehabed and it has been many years (5-7) since that happened, you are going to have a very hard time getting a mortgage in this lending climate.

Your best hope is to find someone who is willing to back the note themselves. That will take someone willing to bet on you, so the work you have done to fix things may carry some weight with them.

The prices have come down so much because units just are not moving, so there is, in my opinion, a real chance that an owner with the means to do so might be willing to finance you. However, obviously you will probably not be able to bargain quite as good a deal on the price that way.

In fact, you may be able to find someone willing to carry the note if you offer a certain premium on your price for owner financing. I can't guarantee you success with this, but it is at least some hope. I do wish you the best on this, like I said, I have been where you are.