Profile picture for stevester888

Bad Credit but have competitive salary, First time home buyer, and willing to down 90%

Hi Zillow community,

I am a first time home buyer and looking to purchase a home next year.  Thing is, I do have bad credit (due to past issues) but now have recovered in terms of solid employment (high annual salary for the past 2-3 years with W2's) and willing to down at least 30% on a home or condo (or basically $80K max).  Will my bad credit still hamper my chances in purchasing a home/condo in the Stamford Connecticut area?  Would it be better for me to look at rent-to-own options if there is one or are these mostly scams?  Your advise is much appreciated.

Best,
Steve
  • December 12 2011 - Stamford
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (7)

Profile picture for Matt Hiatt
If you have bad credit, you would not be able to qualify for a loan. I don't know what your credit score is, but I have had people get a loan with a 580. Your other options would be an owner-carry, which the owner acts as the bank, or there are also private investors who will loan money. Be careful, make sure that you are covered legally if you do this. Here in Arizona, one way we protect ourselves is to use a title company, an independent third party. This way, they can check for liens or encumbrances, and also keep track of the payments being made. Good luck with you home buying.
  • December 12 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for B Mike West
How bad is your credit?  If you are in the mid to low 500s you are going to have to wait until you have demonstrated the ability to handle the credit accounts that you have.  After two years most negative issues have less of an impact on your credit score.  So, if you pay all your bills on time, better yet if you pay down the account balances and keep them open with small balances, your credit score will climb back up.  The exceptions here are Foreclosure or Bankruptcy which will haunt your credit for seven or more years.

Contact a local loan consultant and discuss your situation and implement aan action plan to get your credit score up. 
  • December 12 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Hi Steve,


I am a real estate agent in the Stamford / Norwalk area.

The best thing for you to do is to speak with a loan officer regarding your loan options.

A real estate agent acts as the "quarterback" for your home search and the buying process, and the loan officer acts as the "quarterback" for the financials (down payment, loan amount, loan type, etc.).  Their job is to find the best financial fit for you.

Feel free to contact me for more info.  Not all loan officers are the same, and certain loan officers would be better suited to help you in your case.


- Todd
  • December 13 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Depending on how low your score is. If it is in the 500's, you may still shave a slim chance. If you have had a foreclosure or short sale or a bankruptcy, that is a different story. The BK, has to have been resolved two years ago, same switch a short sale, a foreclosure is up to seven years. Talk to a lender that will show you how to get back on your feet. A good one will point you in the right direction no matter your situation. Good luck! And also, good for you getting back on the horse!
  • December 13 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Talk to a local Realtor in addition to a bank or mortgage lender.   It is in your interest to be represented by a buyer's aagent.  There are opportunities for rent to own that are legitimate  and this is the best way to find one and to structure a lease purchase or rent with option.  If you are willing to put down a non-refundable deposit, it is quite possible you'll find a seller willing to wait  a while to close.  It is likely that the interest rates will remain low over the next 18 months at least.  Be vigilant about your credit, pay your bills on time without exception and pay down your credit cards.Avoid buying a boat, a car or furnishings for your home until you close on your new home, regardless of the temptations.  It will pay off. All the best!
 

  • December 17 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

You should be able to get a mortgage. You may just have to keep the purchase price low and you will not get the best interest rate. Depending on how bad your credit is, consider an FHA loan - required credit score is only 620-640 and requires just 3.5% downpayment, though you will have to pay PMI and an upfront FHA premium.
  • December 17 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for the_country_hick
I know this was asked 5 days ago. Why not make an offer for 90% of the purchase price including closing costs? That would give you a cash buying advantage. If that does not work just wait a year or longer until you can buy strictly using cash.
  • December 17 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.