Profile picture for debbiejay0049

What options are available for someone with horrible credit.

I have never been a homeowner and have been renting a Townhouse paying $1000 for yrs, I know it's best to try to build credit but I woud like to move in about 6mths maybe in a house.If I can't get financed I am looking for rentals or maybe rent to own .I just want to know what are my options, or am I limited to renting forever.
  • October 27 2013 - Kansas City
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Answers (8)

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Profile picture for Scudo Realty
Use your time renting to rebuild your credit and save a down payment. A credit union may be able to assist you, or give you some ideas/suggestions. Once you begin to establish savings & repaired credit, meet with a lender to get the specifics on what you can comfortably afford. Although waiting to buy may not seem ideal, buying at the right time, and not rushing will make the process much more enjoyable!
  • November 02 2013
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Profile picture for wetdawgs
What's available?   Taking time to repair your credit.   As you've been in a stable living environment for years, there is no better time that today to identify why your credit is low (you have a good start here) and then develop an action plan.  It may take a few months, it may take a couple of years. 

How's your down payment savings.

  • November 02 2013
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What's your credit score? Who knows, your credit score still may be acceptable. For example, I have been able to give out loans with scores as low as 580. So if you are in that range or above you will have a shot at a loan with a lender like myself. Otherwise, I recommend that you work on your credit score a bit. The simplest way to improve your score would be to pay off your debt and revolving credit balance on time. It's also important to understand that you're ability to obtain a loan relies on other factors as well. These factors include income, expenses, assets, liabilities, debt, employment, down payment, as well as credit scores. Either way, I suggest you speak with a lender like myself who would be glad to speak with you to help you get the loan that you need. If you have any further questions or if you would like a loan, feel free to contact me.

Good Luck!
  • October 28 2013
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Profile picture for debbiejay0049
I don't mind answering the question but I was married recently divorce ,took on most of the financial responsibility when my now ex lost his job and also a few medical expenses...I do agree I should rebuild my credit and maybe tackle this venture of moving in the 6mths to a yr...
  • October 27 2013
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If you have some cash, you can look around for owner financing and owner contracts.  You may end up paying more than you would like to and you will be limited in your selection of properties but I have seen people short sell homes, ruin their credit and then go purchase properties on owner contracts 3 months later.  I have seen some owner financing contracts of 5-10 years.  There are no hard and fast rules set on owner financing.  It's up to you to negotiate what you need.

You may want to make sure your finances are in order as well.  You don't need to answer this question here but why is your credit bad in the first place?  Is it because you ran into hard times, divorce, medical/illness, etc or is it because your budget is out of balance and you don't make enough money to pay for the things you want/need.  Now look at these issues from a seller/lender perspective and determine if you are a good credit risk for them or not.
  • October 27 2013
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Profile picture for debbiejay0049
Thanks for your responses, I think I will work on my credit but it may be best to just look for another rental, not sure I want to deal with the high interest that alow score will attract or be locked into to anything long term just yet . Great advice Thanks....!!!!
  • October 27 2013
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Work on your credit for the next 6 months.  If you go into a rent to own most contracts require that you get bank financing in about two years or lose everything you have invested.

The answer is Credit first - buy later.
  • October 27 2013
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Profile picture for Outer Banks N C
Do you understand that for rent to own to work you MUST get a loan to buy it? No loan = no own so forget that silly option.
  • October 27 2013
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