Can i get approved for a Mortgage at competitive interest rate if i have a bad credit history?

I'm hoping to buy my first investment property. I will doing a partnership with my partners father but i have recently found out i have been credit listed for failing to pay a credit card installment on time.


the debt has since been paid so i have no credit cards and my car loan has also been paid off.


my partners father has no bad credit history and owns a house worth $300,000 which has been paid off and he does not have any other loans. we have approx $60,000 deposit. The cost of the investment will be approx $450,000





i would like to know if i will have problems getting the loan due to my bad credit and if not will i still be able to get a loan at a competitive price and not a bad credit loan which usually incurs higher interest rates taking into consideration the joint application, existing house as a guarantor and large deposit





Thanks|||You should be ok... just depends on what you credit score is today....|||You'll be fine. The less debt you have the better.|||Yes, you will have a problem.





You didn't mention what your credit score is. Credit score means everything. The fact that you have a prior bad debt is just one piece of the credit puzzle.





"Competitive interest rates" require good credit and a credit history. It is not good to have no current debt showing when you want to get a mortgage. Lenders want to see you are currently able to pay and indeed are paying debt right now. If all you have is old paid off debt, that's not good.





Second, buying an investment property requires 30% down or more. Investment properties are high risk and lenders want the buyer to come into the transaction with assets. Plus you need money for closing costs.





Third, you might not know that investment properties have a higher interest rate anyhow - compared to a home that would be your primary residence. Hope you weren't thinking you were going to get the 5.00% rates you see advertised. Those rates are not for investment properties.





Last, some lenders want to see that you have some property management experience.





Buying an investment property is not easy these days. Not even close.








Good luck.