Wanting To Buy Home-Not good credit!?

Question

Just wondering-does anyone know how to go about getting my credit fixed and buying a home. Is there a way to do it or am I doomed to rent forever!

Answer 1

Try to find a rent to own. My husband and I had bad credit and wanted our own home.
We looked in our daily local newspaper and found a 3 bedroom -2 bathroom ,2+ acres and all we had to do was sign the lease and give a 1000.00 down and we were in.
A lot of rent to owns don't do a credit check.
We pay 640.00 a month and that includes insurance and water.
We pay 200.00 a yr in taxes. We have now been in our home 1 yr and loving it!

Answer 2

Each person has a credit score. Your credit score will determine your interest rate. No one can change that fact.

The best answer is to find a mortgage "Broker" that understand sub-prime and Alt-A loans. This broker might be able to find you a better loan once you have given him the authorization to get a credit check, and evaluate your application.

Once your application has been evaluated he will be able to get you a mortgage interest rate based on your credit score. If you an extremely low score there are a few adjustable rate loans that you can benefit from. They are normally called 2/28 and 3/27. The loans are amortized for thirty years and are in fact 30 year loans, they just have a one time adjustable period. The first number indicate the number of years your loan is fixed for. After the fixed period is over your mortgage automatically reverts to an adjustable mortgage. If you have paid your mortgage on time you should have no problem refinancing your home just prior to the adjustment period. If you wait until the adjustment period is over you will not have to pay a penalty. Most of your first years in a mortgage you are paying interest any way so you are not really paying down very much principal, if any a all.

You are not doomed to rent forever, just find you a good mortgae "Broker" as outlined above, from that point on pay your debts on time, especially your mortgage, your credit will take care of itself in the long run.

I hope this has been of some use to you, good luck.

"FIGHT ON"

Answer 3

I can give you a trick that may help with some credit clean up.
1. Get a copy of your credit report.
2. Compose a letter disputing the each credit reported.
3. Send the seperate letters on each report stating the reason you feel you should not be given a bad report for that item. Such as you have made timely payments on that account. Or you payed that account off earlier than they claimed on the credit report.

By law each creditor has 30 days to report to the credit company to explain their side of the story. Thats where you win....the creditors more often than not dont bother to do this. It gains them nothing. But you will get the items removed from your report.

As far as real estate goes, you will be surpised how many ways a mortgage broker can qualify you. Bigger down, more points, more interest etc. My advice is for you to get into real estate as soon and however you can. It is the surest way to wealth today. Renting is the surest way to poverty.

Hope this helps.....

Answer 4

Most states have programs through the government that help out people in your situation called the Federal Housing Association. Do some checking around at local banks. If your in Idaho they are called the IHA. As long as you an show you make enough money to pay your bills then they wll give you a loan without even checking your credit. Find the right deal on a new how and you wont even have to put any money down.

Answer 5

No you are not doomed but you must be willing to make sacrifices which most people find hard to do and that is why there credit is terrible. Ok here goes. Set down with your spouse and work out a budget. Shread your credit cards. Make all future payments on time. It is not enough to pay, you must pay on time. Ask yourself before you buy something #1 do I need this item that bad and can I do without it. Cut your costs cut out unnecessary items such as premium TV chanels, consolidate your bills, try to renegoate with credit card companies and banks for more favorable terms. Drive your auto or truck till it falls apart before purchasing another one. My best advise is to seek the advise of a professional to help you clear up your credit. You can deatroy your credit easily but it is sometimes painful to clean it back up.

Answer 6

the perfect fix
click on my pic to go to my profile use the bad credit link
here is some text from the site
"We have over 80 Little-known Banks & Companies that offer Bad Credit Loans, Bad Credit Home Loans, Bad Credit Auto Loans, and Bad Credit Personal loans to people with Bad Credit or even a Bankruptcy. Many require absolutely"

Answer 7

You can start fixing your credit right now. Pay your bills on time, don't overdraw you bank account, cancel all of your credit card accounts (keep one if you must have one for business or travel). You credit will recover in two years and you will be able to get good rates on a home loan. The last two years are the most critical when applying for a mortgage loan.

Answer 8

You can buy a home. Your rates will be higher than for people with good credit though. But, you need to find companies that offer loans for "high-risk" clients and do business with them. After a few years, your credit report may (depending on the type of debt you have) clear up, and you can then refinance for a better rate.

Answer 9

Find a house that's for sale by owner. I have a double wide manufactured home on a brick foundation sitting on an acre of land that I got for $500 down. I paid $400 a month for 5 years and pay $160 for 10 years.

Answer 10

Fix your own credit. Do not go thru a credit fixing company or file any bankruptcy, etc. Call your creditors yourself and fix whatever needs to be taken care of. Only then can you get someone to loan you the money to buy a home. Creditors do not want to loan money to someone who does not pay their bills.