Profile picture for user6598444

Low credit and trying to buy a home.

I have been looking for quite a while for a house for my family and myself but my credit score is getting in the way. My scores are 629, 580, & 584.I know I can afford a decent house so I've been monitoring for months and I know I wont be able to truly make any dents in my score until after I get my taxes back. Majority of my debt comes from medical bills which I know a few i can pay off before the end of the year. I've read about FHA loans and Seller Financing. Does anyone have further advice for me? Thank you!
  • August 15 2013 - Richmond
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Answers (7)

A couple of things come to mind after reading your post.  Have you considered owner held financing?  That may be a viable solution for you.  You're agent may know of some sellers willing to carry the financing with a good downpayment. 

Next may be to start shopping around for lenders.  Some offer "no" cost credit repair programs that are so very helpful for challenged credit issues.  Good Luck!
  • August 15 2013
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Yeah, don't do it.

Look. Credit scores are important. You're like a runner who's saying, "don't look at my times, look at my form!" Get those times up, and you won't have to appeal to your "form."
  • August 15 2013
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Profile picture for Jarrid Echard
I'd take a deep breath and analyze your question carefully.... your saying you CAN afford a mortgage but are relying on a tax refund to fix your credit are you sure your not putting the cart in front of the horse?

with this logic i should go buy a new bmw as i'll be able to afford it once i hit the lotto right?  

your credit score is really not a measure of weather or not you can afford anything its a math equation to estimate a lenders risk for lending you $ based on how you handled prior debt.  perhaps you should take wendy's advice and explore additional options.  your tax refund is less then 6 months away and even then your score will not sky rocket.... since you have been looking for quite a while 6 more months shouldn't be an issue 
  • August 15 2013
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Profile picture for wetdawgs
There is no emergency to purchase a home.   Jumping too soon is like jumping into the deep end when you can't swim and are wearing concrete boots.

You've discovered the reason your scores are low, you've put an action plan in place.  The sensible action is to work the action plan and then investigate home purchase.

If you are needing your tax refund to bring your scores up, how is your savings account for down payment, closing costs and emergency fund?

  • August 15 2013
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Profile picture for MartiPa

What price point are you considering?  How is your wide's credit?  There are many things you can do to help repair your credit.  We are offering a home for sale with owner financing.  Be sure to investigate the rent to own or owner financing situation carefully so you don't buy from someone who is unscrupulous or may go in foreclosure or run away with your money.  We own or property without and debt on it but that is not usually the case.  Most mortgages have a due on sale clause so be aware things could be a bit hairy.  If you want to know more about my property, let me know.  I wish you well.  medical problems are no fun.  Don't bite off more than you can chew!

  • August 22 2013
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All the above are great points, but if you are desperately looking to buy a home, and you have been working on getting your credit back up but are unable to. The best bet may be to find a home with owner financing..  This doesn't mean that you do not need credit. It just means that the owner may be willing to take a lower credit score than a financial institution.. For the most part everything else is the same. ( Down-payment, Rate,number of payments, beginning balance, and future value)
www.ocresortproperties.com
  • August 22 2013
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Profile picture for workabee
If your credit is in the can upfront, fix that before you buy. Scope out the info you need and go from there link
  • August 22 2013
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