2006-07-15 09:53:59 · 11 answers · asked by cmac 3 in Business & Finance ➔ Renting & Real Estate
There are other factors to consider, besides credit. Medical Bills are Over looked buy underwriting (since medical is a un-forseen event), where as credit cards, are looked at (since you purchased items on a credit card.) Also, Job time of 2 years, Rental history for 2 years is looked at. What collections & judgements are on your credit report. Some collections may not have to be paid off. Judgements may need to be paid off - depends on the Lender and Their Underwriter. All of these are taken in as a factor on getting a home loan. Credit can be worked on, by adding alternative credit. If you are paying regularly on a cell phone, auto insurance, rent, etc - these are called alternative credit.. All is not HOPELESS - ok - take a deep breath. If your credit score is 500 or higher, anything is workable, with a seller second - etc the higher the credit score the better. Lenders look at the middle score...of the 3 scores. If you only have 1 score or 2 scores (have seen it), it is still workable....but unless a lender sees the whole picture - credit - income - job time, etc - than you will not have a "true" picture of what you can afford - Hope this helps - There are also Government programs out there, but they too are looking for job time, etc.....They are not so much looking a credit - but the other factors are taken into consideration. With a government loan - collections and judgements will have to be paid (most ppl do not know that) but for FHA it is true....
ALSO -
Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.
Try to find someone (broker) that will pull your credit one time, and submit your loan application to company's that will go off his credit report. By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). This will tell you the up-front closing cost (etc) associated with your loan. This is a estimate only - not the final - but it does help you figure things out.
Good Luck, and if I can help in any way check out my web site, for links to all the credit reporting agency's and other useful information.
2006-07-16 08:51:20 · answer #1 · answered by W. E 5 · 3⤊ 0⤋
Why don't you go to a few lending companies and ask them what you can afford and how you can improve your credit score. In the meantime, go on the web an do a search at www.mls.com to locate homes. Depending on where you live, you may be able to get a home in pretty bad condition, but why don't you consider town homes and semidetached as well. They have less land, which affects the cost. Good luck.
2006-07-15 10:24:42 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Yes you can. There are individuals that will lend money secured by real estate to high risk borrowers. Gloversville, NY has many nice homes in the $80k price range. Best of Luck.
2006-07-15 12:04:03 · answer #3 · answered by Jackets 1 · 0⤊ 0⤋
in Northern Ontario Canada!
2006-07-15 09:55:54 · answer #4 · answered by Erdelac 3 · 0⤊ 0⤋
Yeah, find repossesed homes in your area. Cheap!!!! also save up and pay for it up front. it might take along time but is definatly worth it in the future.
2006-07-15 09:57:57 · answer #5 · answered by martincpruitt 3 · 0⤊ 0⤋
Look for a HUD home
2006-07-15 09:58:06 · answer #6 · answered by q2003 4 · 0⤊ 0⤋
Absolutely. Just depends on where, and what you are getting.
2006-07-15 09:56:00 · answer #7 · answered by GratefulDad 5 · 0⤊ 0⤋
good luck FINDING a place to live for that price.
2006-07-15 09:56:56 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Not saying what your going to get YES.. also takeover payments from bank........LOL......ROB
2006-07-15 09:58:56 · answer #9 · answered by Anonymous · 0⤊ 0⤋
LOL. yes, if you pay in cash.
2006-07-15 09:57:27 · answer #10 · answered by TarasBoutiqueAtEtsy 4 · 0⤊ 0⤋