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Answers (18)
- Scott White, "swhite11"
- Contributions:8
I agree that it is nearly impossible to buy a home with a credit score less than 620. Find a good loan officer who will take the time to discuss your credit with you and help you make decisions that will take you to that next level. If you are serious about buying a home you will not be wasting that professionals time. If your problems are superficial, that loan officer may be able to position you to your home purchase within 30 days. If the problems run deeper, they may be able to refer you to a reputable credit repair company. Regardless of the circumstances, you need to be serious about cleaning up your credit. If you are, then positioning yourself to a better credit score my only be a a few months away.
- Julie Falen, "kikilajule"
- Contributions:4
Hi. Depending what your credit is like, you might be able to rent-to-own...kind of like buying a house on a layaway plan. You pay a certain down payment (low) and a portion of your rent each month can go toward your down payment. If you pay on time on a regular basis for 1-2 years, you can own the home. Email me for details. Possibly i can help.
- pepsiolic1
- Contributions:1
There is a problem in the country today. That is that EVERYONE SHOULD HAVE A MORTGAGE. That is why we are in the real estate mess that we are in now. IF you have maxed out credit cards, no emergency fund, poor credit, YOU DON'T OR SHOULDN'T GET A MORTGAGE. Make home ownership a goal and work for it. It may take you a couple of years, but it will be worth it as then your payments won't be too much for you and then you would end of losing the home anyway.
Also, if you and your girlfriend are serious about each other get married. If you break up, one of you will stay in the house and the other one will be complaining about how much equity they have in the house and will sue the other one. Then you both will be forced to sell the house and each one will be renting again anyway.
Also, if you and your girlfriend are serious about each other get married. If you break up, one of you will stay in the house and the other one will be complaining about how much equity they have in the house and will sue the other one. Then you both will be forced to sell the house and each one will be renting again anyway.
- Mark Wilkins, "TheMortgageMark"
- Contributions:349
have you talked to any one yet to see if they can get your credit scores higher for you? Most credit reports contain inacuuarte information.
- expatinasia
- Contributions:22
You should realize that there's a lot more to affording a home than simply paying a mortgage. For example, there are taxes, insurance, and repairs. If you take a wrong step, you might find that your poor credit rating will get worse.
- jey23
- Contributions:1
yes
- Maverick Structures
- Contributions:14
I agree with most of the answers you've received so far.
First, try to work on improving your credit score. You and your girlfriend should get copies of your credit reports, review them, and correct any negative inaccuracies. Try to pay down any balances you can, and be sure to keep current on all of your obligations. You don't want any new issues to work against you.
Free not-for-profit credit counseling services can help you get out of debt and work out plans to pay down any balances in the most efficient manner - I've even seen free online tools to calculate the best payment plan for you based on your minimum payments on interest rates.
Suze Orman would recommend that you set aside an 8-month emergency savings to help you (and your credit rating) survive even if you or your girlfriend find yourselves unemployed, disabled, or otherwise unable to ean an income. Other advisors might suggest you pay down your debt first. You'll have to decide for yourself which is more important.
When your lease is coming up for renewal, you might consider shopping around with a broker to see what else is out there. If you've set aside some money for a downpayment, start looking at co-ops and condos - they'll probably appreciate in value over time, so you can sell later when you have enough downpayment for an upgrade. Otherwise, look at listings that offer owner-financing or rent-with-an-option-to-buy. Your broker can help advise you, too - review your financial situation with him/her - it's free - there's generally no cost to a buyer or leasee to employ an agent for representation.
Owning a home will probably cost you more than the $900/month you're paying now in rent, but in the long term, if it appreciates in value, you get some of that "rent" back when you sell.
First, try to work on improving your credit score. You and your girlfriend should get copies of your credit reports, review them, and correct any negative inaccuracies. Try to pay down any balances you can, and be sure to keep current on all of your obligations. You don't want any new issues to work against you.
Free not-for-profit credit counseling services can help you get out of debt and work out plans to pay down any balances in the most efficient manner - I've even seen free online tools to calculate the best payment plan for you based on your minimum payments on interest rates.
Suze Orman would recommend that you set aside an 8-month emergency savings to help you (and your credit rating) survive even if you or your girlfriend find yourselves unemployed, disabled, or otherwise unable to ean an income. Other advisors might suggest you pay down your debt first. You'll have to decide for yourself which is more important.
When your lease is coming up for renewal, you might consider shopping around with a broker to see what else is out there. If you've set aside some money for a downpayment, start looking at co-ops and condos - they'll probably appreciate in value over time, so you can sell later when you have enough downpayment for an upgrade. Otherwise, look at listings that offer owner-financing or rent-with-an-option-to-buy. Your broker can help advise you, too - review your financial situation with him/her - it's free - there's generally no cost to a buyer or leasee to employ an agent for representation.
Owning a home will probably cost you more than the $900/month you're paying now in rent, but in the long term, if it appreciates in value, you get some of that "rent" back when you sell.
- James Schmidt, "pop61243"
- Contributions:1
"wetdawgs" pretty much nailed it. "stevebsc" on the other hand, needs to look at his own shortcomings before he attacks someone else; "difinition"?
"homer BUYER"? "slave to he debtor"? Give me a break..!
"homer BUYER"? "slave to he debtor"? Give me a break..!
- stevebsc
- Contributions:1
Change your wording. The biggest problem in the US today is understanding the difinition of words. you are presently renting. If you get a loan as you call it homer BUYER loan, that is a oxymoron you are only changing your landlord to the bank, you can only OWN or BUY a home if pay for it. Make a plan save your money and pay cash. You are a slave to he debtor. You can pay cash if you start your thinking on those terms NO DEBT.
- Ray Fortier, "802ray"
- Contributions:50
$900 is a month is still very inexpensive compared to carrying a big mortgage. The mortgage companies are over compensating for giving out mortgages to anybody who could breath. Try to get your credit back in shape and don't worry if you don't own anything in this market. Sometimes you can get more for your money by renting.
- wetdawgs
- Contributions:26854
How to qualify as a first time home buyer:
1. Understand why your credit score(s) are poor, and make corrections in the way you are using credit. Starting immediately, change your habits. Over the next couple of years your scores are likely to increase so you will qualify for a mortgage.
2. Save up a down payment (current minimum 3.5% for FHA loans) and a big slush fund to cover expected home maintenance (budget for 4% of the cost of the house per year). There are a lot more costs to home ownership than the mortgage!
In a couple of years, start looking. (Note: Everything I've said is the traditional way of becoming a first time home buyer. For a few years there were many short cuts offered, with disastrous consequences.)
1. Understand why your credit score(s) are poor, and make corrections in the way you are using credit. Starting immediately, change your habits. Over the next couple of years your scores are likely to increase so you will qualify for a mortgage.
2. Save up a down payment (current minimum 3.5% for FHA loans) and a big slush fund to cover expected home maintenance (budget for 4% of the cost of the house per year). There are a lot more costs to home ownership than the mortgage!
In a couple of years, start looking. (Note: Everything I've said is the traditional way of becoming a first time home buyer. For a few years there were many short cuts offered, with disastrous consequences.)
- Sherri Sherpy, "MN Mortgage Mom"
- Contributions:476
There are still a few lenders who will allow a sub-580 credit score, FHA. The challenge is finding these lenders...they are very few and far between.
In the meantime, consult with a trusted loan officer who can help you put a plan together to repair and improve your credit. Best wishes!
In the meantime, consult with a trusted loan officer who can help you put a plan together to repair and improve your credit. Best wishes!
- Sarah Sun, "aegroup"
- Contributions:2
You may wish to consider having a relative or long time employer sign as a guarantor. You can make the down payment and the monthly payments with both holding title. This will tie up their line of credit so as soon as your credit situation improves, in 6 months or more, you will want to refinance to remove this party from the title. Otherwise, you probably will have to work with a land contract and pay a higher purchase price.
- djkenny
- Contributions:10
You can qualify with little to no credit through Acorn. We were capable of getting a 6% loan, 30 year fixed, with no PMI at all.
Granted, things might have changed the last 3 years since we bought a home as 1st time buyers. They might have become more stringent, but at least you can get that awesome 8k credit and likely a even lower interest rate now (pending you can qualify with the credit score that did not even matter when we bought, Acorn did not care... just wanted to see a steady income/job)
Granted, things might have changed the last 3 years since we bought a home as 1st time buyers. They might have become more stringent, but at least you can get that awesome 8k credit and likely a even lower interest rate now (pending you can qualify with the credit score that did not even matter when we bought, Acorn did not care... just wanted to see a steady income/job)
- Frank J. Fuentes, "FhaFundingPro"
- Contributions:16
I would recommend obtaining a copy of your most recent credit report and start working on the issues that are affecting your rating. Maybe paydown some balances, update account information, etc. You will need a minimum 620 fico, for the most part, to obtain FHA Financing.
- Georgina OBryan, "GOBryan1"
- Contributions:483
FHA will accept 600+ credit, providing you meet their other requirements. Be sure to review your credit report for errors that can be fixed. It can help raise your score.
You may wish to consider Lease (Rent) to Own also. A portion of the monthly payment can go into your down payment and give you time to improve your credit.
You may wish to consider Lease (Rent) to Own also. A portion of the monthly payment can go into your down payment and give you time to improve your credit.
- Don Greenberg
- Contributions:261
As the other poster said, it will be extremely difficult to obtain a conventional loan. Have you looked in to possibly rent-to-own programs, they may be a little more lenient than banks.
- Kelly Lacey, "kellylacey"
- Contributions:797
There are no financing options with people that have poor credit. If your credit is under 620 you will have to work at raising your scores. In addition, if you have any outstanding collection accounts or judgments make sure these are satisfied.
my credit is poor. i rent i feel like im paying more to rent than buy how can qualify to buy a home
Me and my girlfriend do not have very good credit buy i pay 900 a month for 2 bed 1bath apt. Is there anyway i could qualify for a first time home buyer loan?
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