What is the best bargain in purchasing a home? I have no money to put down and bad credit with a new job.?

Question

I am desperate to stay in our school district for my kids sake. I am desperate to leave my situation away from my boyfriend, also; for my kids sake. I now have bad credit (most is 5+ yrs old) and just started a descent paying job that will become commission based. I feel that purchasing is smarter than renting. So, I wonder if one has to have good credit, job stability, and/or money down to purchase a home. Or which is most important? I am working on all of the above and obviously it takes time. So, I need to figure out the best first, second, third and so on, move.

Answer 1

I am a Mortgage Consultant and Real Estate Investor who is brutally honest with people who have bad credit. First of all, I would recommend that you don't buy something that is over your budget. Live below your means. You may do better to get a town-home or condo than to get a house. If you have been on your job for 2 years, and have at least 6-24 months of on time payments then you will most likely qualify for an FHA loan. If you have "bad credit" this will be your best bet. If you can not qualify for FHA you may still be able to get a "non-conforming" loan, but the interest rate will be high. I am talking about at least a difference in 3%. That difference can add $300 on top of your payment. I would recommend that you go to bankrate.com and do the fico score estimator before you decide to have someone pull your credit. It is free. You will be able to see what you are working with once you go on that website.

I can help people get 100% financing with a 580 score or above if you don't have a high debt to income ratio and job stability, so you don't really need money for a down payment. If you would like, you can go to my website www.mynlc.com/A39219 and fill out a quick loan application, but I rather you go to www.bankrate.com to get an estimate of your credit score first.

Answer 2

This will take some time. I'm in the same boat as you. This is what I'm doing: I pulled me credit report from all three of the credit beauro companies (each one will be slightly different), I'm slowly but surely paying off all my debt. Once that gets to zero, it looks a lot better than having a balance. What you also need to do is write to each credit beauro an inquiry to take off certain things on your report. Example: If you have something that has been on your report at least 7 years and is paid off, write in and have them take that off your report. Once you get all your debt paid off or close to being paid off, get a credit card and make sure you pay everything on time. That will help your score go up. If yo have any other questions, ask and I can help you some. I'm working on mine as well and have done a lot of research on this. Good Luck!

Answer 3

Hi,

Credit, job stability, and money down are all factors that the mortgage lender would consider when reviewing your mortgage application. Usually for credit score below 620, you can go to so called "sub-prime" lenders, which lend money to people with not so perfect credit score.

Depending on which lenders that you go to, some will have programs that allow you to buy a house with no down payment (100%) financing. Also, check with your local HUD (Housing Urban Development) office about what kind of grant or programs they have for 1st time homebuyers.

Lastly, I would suggest that you go to a mortgage broker to have them figure out what types of loan program is best for you. They do charge you a fee (so call Points) for their service if your loan does go thru. But, given your financial situation, I would suggest you go to one and listen to what they have to say. Then compare with what they told you with a local mortgage lender where they can also give you some advice.
Good luck.

Answer 4

Feds have a program run thru HUD that gives single Mom's grants - up to $30,000 to put down on a first home purchase. Contact your congressman's local office (they REALLY will help you - don't sweat it) and see what's available in your state.