I'm 23 and just got married we have a low income and I have bad credit and my wife has no credit what do i do?

Question

We want our own place and my parents have 7 acres and a pretty new mobile home, they want to move and owe $20,000 they said if we give then $40,000 20 for pay off, 20 down and they will owner finance the the rest. The property value is about $80-$85,000. My credit score is about 590 but I have a few things in collections, my wife doesn't really have credit, she's made a few car payments on her...now our 03 accord. I just got back from the military and am starting my job thurs as a shift leader at blockbuster and my wife starts her job tomorrow at a daycare. I own a 95 civic its paid for so there is no note on that. I am 23 my wife is 19 what should we do? Right now we are living in the home we want to buy with my parents but thats only temporary, we either need to move out or buy this place, where should we turn? I'm sure we can't get a reagular loan from a bank. is there a special organization we can turn to? We live in Louisiana where Rita hit. This is where I grew up, Please help!!

Answer 1

You might try some of the mortgage companies but if you go to a high interest loan it may be more than you can handle.
Don't you have a lump sum from the military,. or veterans benefits.
You might try something like CIT. Some of these loan companies will loan you the money at high rates and than when your credit is better you can barrow from a bank and pay it off.

If you can get them to hold the second note as a second mortage than a bank will loan you the other 20. Not many banks will turn that down.
How ever working at blockbusters is not going to pay bills so you need to consider a career change, and soon.

Answer 2

There are several financing programs for first time homeowners like you. Depending on your actual income, you may qualify for some of them. However, with you JUST starting a new job, this could be an issue, though they will take your military career into account - at least some will - as proof of steady employment.

Your credit score is pretty good, your debt is not really excessive; could be that you may have to buy the house in your name only to fully qualify for these first time home loans.

When we were looking to buy a house, we contacted a financial advisor who helped us find the right loan, told us what we should try to pay off immediately and which debts were good to still have. (Yes, it is actually good, in our messed up society, to have debt).

However, it may be that you are stuck renting for a while longer - like a year or more - until you get your job status all figured out and your debt down.

What you can do in the meantime-
-DON'T use the credit card - and if you do, make sure you have the cash to pay off the amount you spent, as well as make the next payment.
-Try not to wrack up any new debt.
-Hold off having children if you can - this will help you save money.
-LIve off of one income and put the other person's income away in savings for a year. Yes, she should work. Yes this can be done.
-Help build your wife's credit score - get her a low amount charge card, use it to pay bills with every month - things you'd have the money for anyway - and then use that money to pay the credit card balance every month. This helps IMMENSELY in building a positive credit score. (I know, I said don't use the credit card, but this is beneficial, IF you pay the full balance every month.)

Good luck - owning your own home can be great, can also be a sinkhole. Make sure any property you decide to buy is thoroughly inspected - especially electically - and that you bargain upgrades or money to get the upgrades or repairs into the buying cost.

Being military, consider USAA. They are insurance for military folks, as well as financing. And credit. And all kinds of things. www.USAA.com is the address I believe.

Answer 3

Well you are getting a good deal. So a loan will be a little easier.

Most lenders will lend on this because your LTV (loan to value) is low. You would only be borrowing 20,000 on a property valued at 80,000. That puts you at 25% LTV. You have a few options.

If you can afford it, you can get a hard money loan. Be careful about the one you choose, have someone, or you yourself shop around. They will loan you the money, and not care about credit scores, income, or credit history. This will allow you to build up credit over the next 1-2 years.

Most lenders want to see 2 years solid work history. Being that you are in the military, that will help, as they see it as a JOB.

If you are no longer in the military, you will deffinitely want at least 2 solid years of work history for you and your wife.

Keep the credit good. Maybe open 2 or 3 secured credit cards. These you can get at a local bank. They require you to deposit money (thats why they are secured) but won't check your credit to open one. So you get the benefit of it reporting on your credit, but don't lose points for them checking your credit to open the card. Make sure you get one that does't pull your credit.

Keep all your payments on time for any credit you have. Avoid interest free store loans (for tv's, appliances, furniture) These hurt your credit scores when they pull your credit the most.

If you want to try another way, go to http://www.azsmartcash.com. It is a group of private lenders. They will lend up to 25,000 for any credit, income situations.
Good Luck

Answer 4

Well, you will already have equity in the house -- the 50% you owe your parents. They are not a bank, so the bank could see that as already owning half. That equity may be enough to offset your having moved into a new job.

Look for a no-down-payment loan like a 60/20 or VA loan on the remaining 50% balance and you could be all set.

Good luck to you!

Answer 5

You may have a few options. Since your parents are willing to owner finance you may be able to work out your payments with them. However if you need to go to a mortgage company you may need to take on any debt you owe to the end of the loan. Some banks will do this if you do not owe alot of money out to creditors. You also need to watch your debt. Make sure that whom ever you deal with does not do predatory lending. And all that means is that they lend you money they know you cannot possibly pay back and then after a few months they swoop in and foreclose on your property.

Answer 6

Start fixing your credit, then look at getting a loan.

* Pay off debt

* Remove negative items

* Build new credit


Prepare now, buy later, save a heap of cash and aggrivation

Answer 7

start to built your wife credit history. all your accounts with good payment history you can add your wife name on it. with your credit score - you will get the loan

Answer 8

my best advice to you is when you gte your in come taxes pay so much down or pay off your collections. i and my husband has bad credict and we where able to get in to a home by pay so much down have u talk to lender?