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Home >> Manage Your Money >> Debt Management
Bad Credit: Wants Loan
I have bad credit. I would like to know if there is any bank in the world that would give me a loan for $30,000.00 to buy a house and pay off my bad debt, if I put 20% down?
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 The problem with bad credit is you are a higher risk for nonpayment and problems. It depends on what you call bad, and what a lender will accept. It also depends on collateral. If you buy a home at the asking or market price and put 20% down, where will the money come from to pay off your debt? If you want to finance more than the home is worth, that won't happen in today's economy. That is what broke so many lenders in the last year.
It sounds like you want a new lender to pay the bad debt of another lender. That is a warning flag. You are free to call your local lenders and propose your scenario to them, but the brief description you provided here, says you want a home loan and more money to pay off someone else. That is a hard loan to get approved. Instead, contact those you owe, make payment arrangements if needed, get that debt paid and your credit report updated, to reflect that you did make your payments, just over a longer period than planned. It isn't great, but it is better than those who don't pay at all.
Published on BankingQuestions.com 12/17/09
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