We own a home, are going to sell it, and maybe clear (after all costs) $10k - $20k. Our credit is poor due to medical and marital problems. And we are aching to live somewhere else, locally. (Ohio).
Since both of our credit scores are pretty low (I'd say 500's), are we better off renting for a year or two and bringing up our score; or purchasing a home with a smaller mortgage payment (and what certainly will be a higher interest payment).
Also, we have three kids a dog and a cat, if that makes any difference. I know it will be harder to rent with the animals, but there are people willing to do that, as I've seen.
Is there even anyone who would consider giving us a mortgage with the poor credit??
We are torn about this! Help!
2006-07-11 02:53:49 · 10 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
buy if you can buy. renting just throws money away.
it doesn't make financial sense to go from owning a home to renting.
Why don't you use the 10-20K as down payment on a new home? Just calculate beforehand and make sure you can AFFORD the home.
2006-07-11 02:57:27 · answer #1 · answered by truthyness 7 · 1⤊ 0⤋
You have the "I WANTS" and I am on mom's side in this one. You just do not NEED to make this purchase at all since there is nothing wrong with the auto you have. My car is 11 years old with 240,000 miles and runs great. Could I buy a new car? Sure and pay cash as well but I do not NEED a new car. You children that think you NEED when all you have is I WANT is what gets you into financial trouble later in life. Start a new car savings account and put the money in there for it every month and when you can trade and pay cash then do so but I am still on moms side here Oh BTW I am a mortgage banker in TN & KY and you do not even need a score to buy a home as there are still manual underwritings available at this time. If you just want a credit rating get a small credit card and use it montly and pay the balance off monthly and in 1 years time you will have great scores
2016-03-27 01:00:39 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You are almost always better off purchasing rather than renting. Especially here in Ohio, where property values are pretty low. What you need, as long as your credit score stays above 500, is to put 20% down. So if you are buying a $50k house, you need to put down $10k.
If you end up with $20k after selling the house, you can get a $100k house.
If your credit score is a bit higher, you'll need even less of a down payment.
I can give you an idea where you stand if you'd like for free. Just email me at robert495713@yahoo.com, I'll give you all my contact info and you can check us out. We are BBB members.
Good luck to you,
Rob
2006-07-12 11:56:00 · answer #3 · answered by Anonymous · 0⤊ 0⤋
I would see what the difference between a monthly rent payment and a monthly mtg payment would be. You could always buy a house now and then refinance in a couple of years after you have worked on your credit rating.
If a mtg payment and a rent payment are going to be about the same I would buy instead of rent.
2006-07-11 03:00:07 · answer #4 · answered by nana4dakids 7 · 0⤊ 0⤋
I will preface my answer by telling you that I am a licensed Realtor® in Arizona.
It’s generally better to buy then to rent. The first thing that you can do is talk to several mortgage brokers in your area. Let them know where you are and where you would like to keep your payments. Personally, I would stay away from interest only loans (personal preference) but there are some other options out there for you.
You can also see where you are on the web, buy going to a site like http://www.realtor.com and find their home affordability calculator.
You can then search realtor.com for homes in your price range that fit your budget.
I hope this helps you, good luck in your home search.
2006-07-11 10:13:07 · answer #5 · answered by Stephen Newman 2 · 0⤊ 0⤋
Hi im from Australia, not to sure what the difference is with rental properties there in the USA however in Australia some of the rental properties are more expensive then the morgage. I think you would be better off sitting down to work out your estimated weekly budget to see if you can afford to buy again as we all no rent money is dead money, and what have you got to show for all your hard work when you decide to move on..
2006-07-11 03:01:34 · answer #6 · answered by mermaiden_4_ever 3 · 0⤊ 0⤋
Having a co-signer helps if your credit is low... It can sometimes take years to rebuild credit but I do know that houses are alot easier to buy anymore.. My suggestion is just to call around and see what you can find out...
2006-07-11 02:57:43 · answer #7 · answered by W V 1 · 0⤊ 0⤋
With the price of heating fuel, increasing property taxes, maintenance, I`d rent while you restore your credit, put that equity in savings and don`t touch it.
2006-07-11 02:59:06 · answer #8 · answered by airpolicejohn 3 · 0⤊ 0⤋
go ahead and buy the house with the low morgage and get better jobs and that way you can have your animals and your kids but not in such a crowded space like in renting
2006-07-11 02:58:54 · answer #9 · answered by arielcowgirl_2010 4 · 0⤊ 0⤋
i think u should buy"cause u know it's all yours that way u won't be worried of paying every month!!!!!!!!!!!!!!!
2006-07-11 02:58:58 · answer #10 · answered by lalahappygurl 3 · 0⤊ 0⤋