I am a single parent on a limited income and have four children who need a home of their own. My credit sucks bigtime. How does someone like me buy a house? Please, serious responses only.
2006-07-08 18:33:19 · 10 answers · asked by chrisandmell90 2 in Business & Finance ➔ Renting & Real Estate
I live in Illinois
2006-07-08 19:08:04 · update #1
Try hud homes
2006-07-08 18:35:00 · answer #1 · answered by Oracle 3 · 0⤊ 0⤋
lots of ways to buy a house with lousy credit and no money... but...
the main question is can you afford the payment. lots of people have came to me over the years wanting home ownership, and they are living in an apartment or a cheap house rental paying below market rent. they think they can move into this OK (or better) house and afford the payment and the taxes and the insurance and the upkeep. It is sometimes better to rent than to buy.
with that being said.. here are some ways to get the keys:
owner financing is still a big one, meaning the owner of the property is the bank. if the property has been on the market a while (first ask why) you might have a desperate seller. no money down, higher than average interest rate and a balloon payment in two years, in other words they'll cash out when you go to a bank in a year and a half and refinance. refinancing should be relatively easy with the appreciation of the property.
another way to buy a house in your situation is to go to a mortgage broker and see what they can do. you might be surprised. I know folks that were in the 400s in the credit score and got 100% financing.
another way is to look for private investors. network or place classifieds. this was a very common thing when interest rates were lower, and its still around.
clean up your credit! six months can really turn things around. if you can't afford to pay your bills on time, can you afford to buy a house?
2006-07-09 01:47:25 · answer #2 · answered by Empowerment 3 · 0⤊ 0⤋
We had a similar problem. The first thing I did was order my credit report from the top 3 agencies, Transunion, Experian, Equifax. You can get one report free per year. .Next, tackle one bad "point" at a time. If you have a cell phone that you never paid off, pay it off, then call the company and get a letter mailed to you that shows you paid it off. Do this for each derrogatory point on your report, even if it takes a few months. After the last bill is paid, wait 90 days and then order your credit report again. If there is anything still on your reports, HAND WRITE a letter to the credit agency and ask them to please remove the derrog off your report because you are trying to buy your first home. Be nice, you will see that they really do care. Next, talk to relatives, friends and coworkers and ask for a referral to their real estate agent. An agent works with a loan officer who is ultimatley responsible for getting you financed. If your credit score is 600 or above, you are on your way to purchasing your new home, sooner than you think. If not, you might have a year or so to wait. Regardless, talk to the people around you and they will be able to refer you to someone who helped them..
2006-07-09 01:43:43 · answer #3 · answered by EssGee 2 · 0⤊ 0⤋
Your local city hall has affordable housing programs for purchasing homes for low to middle income families. They might even have some grants to help pay for it.
As far as the loan aspect goes, go to www.fanniemae.com and look at all their loan programs for low income people. Fannie Mae is a government agency that purchases loans from privately held lenders and banks.
Someone gave you excellent advice on how to fix your credit. You would be suprised how many points go up if a you dispute a negative aspect ofyour credit report and the debt company fails to respond to the credit reporting agency.
Regards
2006-07-09 05:32:28 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Apply for a housing (HUD) grant, ie. American Dream Downpayment Initiative (ADDI) or Affordable Housing Program
You can go here for tons of info:
http://www.hud.gov
2006-07-09 01:37:16 · answer #5 · answered by Kryztal 5 · 0⤊ 0⤋
I wish you would have told us the state you live in. Each state can, and most do, have programs to help folks in your shoes. Try talking to a local real estate agent, see if they can help point you in the right direction.
2006-07-09 01:40:24 · answer #6 · answered by Steve N 3 · 0⤊ 0⤋
If you can afford to rent, you can afford to buy a house. Check out http://www.hud.gov/.
2006-07-09 01:38:36 · answer #7 · answered by Cortney B 2 · 0⤊ 0⤋
HUD homes...or else pay off your debt or your out of luck.
2006-07-09 01:36:26 · answer #8 · answered by hottotrot 1 · 0⤊ 0⤋
Look into first time buyers programs.
2006-07-09 01:35:44 · answer #9 · answered by Diamond in the Rough 6 · 0⤊ 0⤋
I would highly recommend http://www.realtyhelpusa.com
you will know why i have recommended this site when you will visit there.you will find whatever you want about real estate.
2006-07-10 04:41:47 · answer #10 · answered by cathy colon 1 · 0⤊ 0⤋