Profile picture for jangell0224

Im trying to figure out some things. Please help!

I am a low income disabled parent of 2. I am soon to come into a little bit of money due to a settlement with a workman's compensation claim that left me disabled. I currently also receive social security and am interested in buying a house. My credit score is 542 I think more so from not really having much on my credit vs actually having a bad credit. I would really like someone I can sit down with to figure out what types of grants and loans and assistance I would be eligible for. I know its a process but  where would I start? Who do I talk to? Where do I go from here?
  • March 07 2014 - Malden
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Answers (5)

Profile picture for shapiroamg

Most MA cities and towns have Economic Development Office or Housing Authority which should be your first stop. There they can go over any and all residential benefits that may be available. Many towns have soft second mortgages which are used to be a grant for a down payment. Others will have lower income housing available and housing lotteries to purchase these homes when they are available.

if purchasing, you still would need to qualify so an appointment with a Loan Officer to help determine why your credit scores are lower and how to improve them would be a good investment of your time.  I would ask the Economic Development office which banks or mortgage companies tend to finance the affordable housing in your city. It would be best to work with the bank or company that has experience with affordable housing units.

  • March 07 2014
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Im going to be painfully honest here and not sugar coat this... Ive never seen in my carrier someone with a 540 credit score obtain a mortgage without using seriously bad loans that were available "back in the day" that are simply not done anymore (no doc's, stated income, etc.)

Even with a HUGE down payment I don't think its possible these days for you to obtain a mortgage without having a co-signer or something like that (maybe some mortgage reps have more idea's?)

Is it possible with your settlement to maybe pay cash in full for a smaller home, Mobil home, etc.?

You should certainly sit down with a mortgage specialist and find out ways to best increase your credit score, if all else fails take your money and put it in the bank and DONT SPEND IT! take the time to get your credit score up... within 1 year you will then be able to get a mortgage that does not brake your thumbs and kneecaps if you make a late payment.

Best Wishes!
 
  • March 07 2014
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A great place to start is with a mortgage lender as well. They can give you a good idea of the different programs out there for what you may qualify for and they can work with all the different income you may be receiving. This way you can definitely figure out a great plan of action and price range!
  • March 07 2014
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Profile picture for jangell0224

Thank you for this response but I also want to add that I have never ever had a credit card of any kind. I had a vehicle that I paid on time every time until it had gotten totaled and the insurance paid it off. It shows that in good standing. Also that the 542 is a combined score of all three credit bureaus given to me by credit karma.

  • March 07 2014
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Profile picture for Blue in d Nile
Call your local county or city housing department and set up an appointment with them.

You don't get "low scores" on FICO for not having credit; you get low scores for not paying bills on time.  Sure, you can't get the really high scores without established credit, but it is not paying bills on time that lowers scores, and that includes rent, utilities, phone, department stores, gas cards, medical bills...  You also can get low scores for maintaining too high a debt on any credit card.  FICO likes to see your balance to credit limit less than 10% on each credit line.  (Credit card or whatever).  (Called the "utilization factor").

The important thing to do to raise your scores is pay at least the minimum payments "ON TIME".  EVERY late payment lowers your scores; even if it is only 1 day late.  Some are more critical than others.
  • March 07 2014
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