Other alternatives to getting a mortgage loan?

I get sooooo tired of people saying, its' easy to buy a home.  I have been a renter for 10-years and presently paying $650.00 per month...I am on disability with a decent monthly income ($2,500.00)...My credit is not good at all and I am presently in the process of filing for chapter 7 bankruptcy (I have already been approved).  I am in school full time completing my RN Degree so that I can get off of ss disability and I do have other income as well....The problem is my credit...I do not have 10% to put down and some of the non-traditional (so to speak) mortgage companies that I have spoken with immediately turned me down.  I have completely rehabbed the property that I am in...everything from new garage doors, floors, cabinets, painting, central air, etc...My landlord doesn't want me to move but if I were my landlord, I wouldn't want me to move either.  I am just at my wits end and so very, very frustrated.  I have been on time with my rent for the past 2-years which is how long I have been in this property.  I want to purchase my own home and I know that I cannot get a traditional mtg.  Are there any land contracts out there?  What else can I do?  Someone told me about the FHA 203K loan.  There are so many properties here in the Flint, MI area going for as little as $9,000.00...why is it so hard to purchase a home but one can be a renter for life?  I would welcome any suggestions...Thank you!
  • November 08 2013 - Flint
  • 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)

Land contracts in MI are more common than in most states. I suggest searching for a property with that option.
  • November 08 2013
  • 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 footski97
I have no credit also mine all stem from unexpected surgeries and medical bills. I am working with a company called Lexington Law they do charge a monthly fee. My credit score has gone up and old items have been removed. It's worth looking into. I always believed if you don't have the cash you don't need it so I was never a big fan of credit cards but now I cannot purchase a home because I don't have credit. It's one of those things. Give them a call friends of mine used them that's how I found out about them. They are great at helping you with your credit.

Best of Luck
  • November 08 2013
  • 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 wetdawgs
It sounds like you've identified the issues affecting your credit, and have had a chance to take some actions but know that more actions are ahead of you.  It isn't easy and it takes time to get all the way there.    Rehabbing the landlord's home isn't going to get you there... use the money for building your own credit.

Land contracts are out there, but are extremely rare.  Owner financing is also sometimes available. In both types the owner will also look at your credit history and bankruptcies, so don't be surprised to hear of a request for 20 to 30% down payment and interest rates ~3 x market rates.

203k loans will have similar qualifications to those you've already investigated.  The "give me a chance" loans have basically disappeared unless you have a high down payment and are willing to pay very high interest rates.

Step by step you'll get there.   Good luck.
  • November 08 2013
  • 2Yes

  • 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.

Pasadenan....really your "opinion" does not matter to me and bad credit is not a choice...I didn't know that this forum was here to criticize...oops, I was wrong.  Bankruptcy is not free money and how would you know anything about me or anyone else....comments like your should be kept "SILENT" unless you have already walked in the shoes of that person....I am not one to remain silent on this board and just let people say what they what...you might think you have the right idea but you have the wrong chick!!!
  • November 08 2013
  • 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 blank screen EXILED
[Content removed from post due to violation of Good Neighbor Policy]

Remember, if you can't even put money aside for a down payment, you will not put money aside for necessary repairs and maintenance, so you can't "afford" to buy no matter what.  Besides, what you are paying in rent is 1/2 what it would cost you to purchase something 1/2 the size in a worse neighborhood.
  • November 08 2013
  • 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.

To answer your question this is because I knew that I was going to file for chapter 7 bankruptcy...I have not added anything knew to my credit but I do enjoy having a nice home (even in the Ghetto)...so this is why I have not poured any money into my credit....what I did do was paid off my vehicle...paid off my student loans and paid off my daughters braces...so all is not a lost...I had to wait another 2 years before I was able to file for chapter 7...I had previously filed with my former husband...So, I hope that I answered your question???  And, it's not "supposed income"...
  • November 08 2013
  • 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 Outer Banks N C
The 203K is still a loan and with bad credit that is always going to be your hurdle to get over. Why have you not improved your credit in the past 2 years with all the income you claim to have? That is what it will take so cut corners, save, do without some things but save and improve the credit.
  • November 08 2013
  • 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.