does anyone know??

Question

My husband and i are interested in buying a house we will be first time home owners...the only promble is we do not have good credit....will we still be able to get a house?? Is there any kind of assistance we can get ?? whats the steps that we need to go though??

Answer 1

Hi,

Yes, I know....

That is the best move you can make... Buying a house is always better than renting anyway....

Before seing a realtor, go see a lender for a precal...

There are mortgage brokers in our phone book... Most of
them will help you ... They are pros... and want their commisions.

You don't mention your state,but I believe the 1st time buyer
programs are nationwide...

Normally this means from 0% down to 5% down... and
the interets rates are also reasonable....

The precal will tell you exactly what kind of house to look for
and the minimum-maximum house price the program covers
in your specific case...

Once you know to look for a house between 70-90 thousand dollars, then you can see a realtor in the area you
are looking to live...

Not only poor credit is an average situation, but some program will help you even with little or no down payment...

The process is not much longer, but the experts will
guide you as you go...

Make sure you don't buy the first house you visit unless
you fall in love totally...., but if you like it a lot don't wait too long
to decide an make an offer... You can loose it if you hesitate...

Do it asap... A house is the best savings account you
will ever find....

Hope this helps...

Good luck.....

Answer 2

Nationwide average credit score is 720. The better your score and your credit history, the better the rate that you will get. The higher your score, the less of a down payment you will need.

If you have a credit score of 580 or above and can prove you make enough money to make the payments, you should be able to get 100 percent financing. The more of a down payment you have (at least to a certain point, about 20% of the purchase price), not only the lower your payments will be, but the lower your interest rate(s) as well. Subprime lenders will lend to those with credit scores as low as 500.

Someone earlier said that no credit history is better than bad credit. This is incorrect. I can get people loans who have bad credit history. But if they have no credit history, that's much more difficult. I had an executive couple a few years ago who only had one credit card and a private mortgage that they wanted to refinance. They made $25,000 per month, had several large long term investments, and didn't owe a penny except for that mortgage. A paper lenders (the only sort that would get them a better loan) would not touch the loan until they got another credit card and made a payment on it. Weird, but true. Even the subprime lenders I talked to wanted another open line of credit.

Now the things that mortgage lenders are most interested in is your housing payments. Has your current rent (or mortgage) been paid on time (actually, has it not been more than thirty days late) for the last two years? If so, they're probably pretty happy with you.

In fact, the thing that sinks the largest number of borrowers is the other debt service payments they have. Car payment of $500. Credit cards for another $300.

First time buyer programs are everywhere, and vary from city to city, but even if the program is great, there may not be the funding when you apply. Make sure there's still funding available before you put an offer in that requires first time buyer's assistance. Best place to call is the housing department of the city you want to live in (or county, if you're looking at something outside city limits).

Here's an article where I go through the calculations of whether you're likely to qualify:

http://www.danmelson.com/posts/1147464929.shtml

Answer 3

Good credit is always a plus, but not as important when buying a house. Depending on which state you live in, banks or mortgage companies are very willing to work with you. What I mean is; some states, like Texas, protects people from creditors and will not allow them (banks, mortgage co.) to take your home away for any reason, even bankruptcy. Therefore, banks and mortgage companies will not likely loan money to people with bad credit.

However, there is a difference from No credit, bad credit, average credit, and good credit. It will be much easier if you have No credit than bad credit.

So you don't have to have "good" credit to buy a home. You may just have to put a larger down payment.

Most states, other than that described above, banks are willing to work with you but will require at least a 20% down payment. Eg. $20k on a $100K house. Also, your interest rate will be HIGHER.

Remember, banks and mortgage companies don't care if you have good credit, generally, as long as you put enough money down. If you default, they will easily take your house back and auction it off and keep your down payment. They never lose.

The first thing that I would do is go to the bank that you have a relationship with (checking, savings, CD's) and talk to the bank manager. Get some info on their in-house mortgage department.

Once you have picked a house, or price range, go to your bank rep. and apply. The rep. will work with you if he or she sees that you are really serious. Remember, it may payoff to be honest right from the beginning and tell them about your reservations about your credit. But never let them think that you are desperate and will take any offer.

Remember, when you are shopping around for lenders, you are the customer. As long as the money is still in your hands, they have to cater to you inorder to get your hard earned money.

Answer 4

I suggest using a competent Mortgage Planner, they will be able to help you analyze ways to improve your credit and get into the best possible situation when you do find the place you are interested in.

A Mortgage Planner (a.k.a. broker) will also be able to shop your situation around to hundreds of lenders rather than you just going to one or two banks which may or may not be able to help you depending on their lending criteria.

They also have extensive experience in presenting your situation in the best possible light to lenders they have established relationships with and access to.

Step #1 though would be to get all three of your credit reports and FICO Scores, and look at ways to improve them. Often times people THINK their credit scores are worse than they actually are.

Then get pre-qualified for a loan to find out how much you can actually afford.

Answer 5

There's a lender for every borrower. With bad credit, expect to pay insane interest rates and be dunned 5 minutes after a payment is late.

It would be far wiser to work on cleaning up your credit for 2 - 3 years while saving up a down payment.

Answer 6

Talk to a loan officer and he'll look into your credit scores and tell you the amount that can be loaned based on your scores. When you know how much you can get then you can start looking for what's in your price range. You can also ask them about first time buyers advantages.

Answer 7

Check with a reliable realtor about financing options, be wary of shady lenders who promise the moon, but get you in the end. The one main source for first timers is Fannie Mae; look it up to get more info.

Answer 8

yes,i do know the government does help 1st time home buyers if u earn a certain amount a year,but i couldn't tell u where to visit , why don't u yahoo or goggle Ur question,good luck