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How can I buy a home in my financial situation?

My family and I have been renters for the last 12 years. My dream is to buy a home as soon as possible. I have a full time job and gross 30,000 a year. My father grosses the same amount. How is it possible, in our financial situation, to acquire a single family home in the San Fernando Valley? I've never had credit cards, so I have no credit at all, thus I cannot get a credit card. My father has credit cards and we are trying to pay them off as much as possible. I would appreciate some help on my situation, except answers regarding HUD Homes, in which most are located in Los Angeles or Palmdale/Lancaster area. I want to stay as close to my job as possible in order to keep it.
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February 07 - Canoga Park
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Answers (8)

There are organizations that work with H.U.D. to upgrade and sell single family homes in the San Fernando Valley. They also build homes with the help of volunteers. Their motto is that everyone should be able to live in clean and decent housing The one I know best   is called Habitat for Humanity which I recommend you contact first.
 They  even help with loans and credit issues.www.habitatforhumanity.com
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February 20
Good advice given below - Visit with a reputable mortgage lender to determine your exact qualifications and get started!

Good luck!
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February 09
First things first, you need to establish some credit.  My brother had the same situation a few years back when he didn't have credit and tells me that he doesn't believe in credit cards.  I told him its not whether he believes in credit card or not.  Its a just necessary to establish good credit history.  Having good credit history saves you lots of money in terms of finance charges you pay every time you take out a loan to buy a house, a car, or even take out a personal loan or business loan etc.

If you can't get a credit card because you have no credit.  Then I suggest that you open some retailer cards such as walmart, target, homedepot, gas card etc.   If you have a savings/checking account with a local bank then I suggest that you try to get a credit card through them. These cards have really high interest rates because their goal is to give you a credit so you can charge it up so they can make interest off of you.  But remember, I am not suggesting that you max out on these cards because that will put you in a lot of financial trouble.  I am suggesting that you build a credit history with these cards to establish credit trust in the eyes of the creditors.  You can use these cards to buy little stuff here and there but MAKE SURE THAT YOU PAY off the balance every month.  After about 10 months or so, then you can start trying to apply for other credit cards, they will see that you have establish credit with a few companies by then.  In a very short time, you will have establish enough credit history to purchase a home.

My brother took my advice and was able to establish credit history rather quickly.  He currently has over 720 score on his credit report. He has established credit with about 7-8 card companies but he only carries one card with him for daily use.  The rest of the cards he shred.     
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February 07
If your looking for homes in San Fernando Valley? That puts you in LA County. There's a program in California that allows and FHA loans to go to 99.5% CLTV and the rest can be a gift. You and your Father can buy the house together. This program has an income limitation of $80,040 per year for all combined applicants but you can still buy a nice house the Valley with that income.
Wetdawgs has it right though, you can't do anything until you begin to build your credit, unless your Dad can qualify on his own. Lenders want to see that you have depth in your credit history that spans 2/3 years. So, it may not be reasonable to say your ready to start looking now but
if you start getting your credit established? Eventually, you will be ready 
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February 07
That's a great question. I recently did a blog post that talks about the different loan programs and their down payment amounts. I'd recommend giving it a glance. How much is a down payment?
Down payments can be one of the largest obstacles when trying to buy a home, so knowing all your options is very important. 
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February 07
Right on Wetdawgs and Susan!

Hsmith - heed the advice below.  

Your next step would be to have a loan officer assess your complete financial situation in order to advise you and point you in the right direction.  There are plenty of programs out there that may fit your needs.

I'm located in sunny San Diego and would be happy to help guide you through the process. Contact me with any questions or concerns. 
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February 07
Okay, Take a DEEP breath.  You are obviously very passionate about your desire to own a home and it will happen.  You need to take a few steps to get your dream on its way to become a reality.  You can get a credit card but it will have to be a secured C.C.  These cards will require you to put your own money forward to secure the credit card account.  Usually you can get started with as little as $100.00.  You can use this card to buy gas and small things.  Pay your bill each month and you will begin to earn credit history.
Next step is a very important one.  You need to find a trusted mortgage lender that will be willing to work with you and your father on getting your credit scores in place.  Paying off credit cards or closing accounts can actually hurt or lower your FICO score.  So work with a lender to advise you on how to best make financial decisions that your FICO score will benefit.  CreditKarma.com is also a great, trusted and FREE tool for you to use while you are monitoring your score.  
If you plan for the future and take these steps, you will be a home owner in no time.
Good Luck  :)
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February 07
Profile picture for wetdawgs
Preparing to buy a home takes several steps.   Zillow has compiled a series of articles in their buyer's roadmap.

There are cards that you secure with a payment up front that can help you start to develop a credit history.   Contact your bank, they probably can help you.

How are you doing saving up a down payment, closing costs and reserve fund?   





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February 07
 
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