In need of a little financial advice!?

Question

I am currently in the process of restoring my horrible credit. I have already sent off my settlement letters to different companies, 2 of which are credit card companies. If the company agree to the settlement offer, I will be paying a total of $1,114.56, if they don't then it will be $2,048.21. I really want to start buying a home by the summer. Unfortunately, I am depending on my financial aid & taxes to pay on my credit. If I do this, I won't have any money left for ernest money, down payment and all the other charges that comes with buying a home. Thing is, I'd like to buy a forclosure, and I'd have to be 100% approved to do so. So in order to get the 100% approval, I have to get my credit in good standing. Are there ANY loans or someting out there where I can deposit my taxes & financial aid into a cd & save that for buying my home & using the loan to pay my bills. Keep in mind that my credit is not in the best shape. I read something about using your cd to borrow money against it

Answer 1

You may want to hold off on buying a house for a while until you have paid off your debts. Once you've paid off your debts it would be wise to build up about 3-6 months worth of expenses.

By having this, you don't have worry about things like your car needing a major repair or any other curve balls life can throw you.

By having these things before buying a house, when you do finally get to buy it, it will be a blessing because you will be able to handle anything like the water heater going out.

Patience with this will payoff for you in the long run.

Answer 2

First off, you are not in a situation where you should be buying a home. It is a poor decision to buy a home with 100% financing. With collection accounts on your credit record, your score will take some time to rebuild. If your score is not up to par, the amount of interest you will end up paying over the 30-year mortgage will be ridiculous. You first need to start saving every penny and not just relying on financial aid (not sure where you're getting this from) and taxes. Also, forclosures can be tricky, especially for first time homebuyers. They tend to gain more interest than a regular home b/c their sale price is less than the appraised price. Depending upon the market, you may end up paying more than with just a regular home.

As for the savings account, you can open a high-yield online savings account with either Emigrant Direct or HSBC Direct. These both currently offer a rate of 5.05%. These accounts are liquid, unlike a CD.

Answer 3

You don't have to purchase a CD then turn around and borrow against it (that is one way of course) but just as easy, you can take the money to your bank, deposit it in a reqular savings account and tell the bank you want to borrow money using your savings as a collateral. It varies from each bank as to how much you can borrow in contrast to your collateral. Make your payments on time, since this is considered a loan, the timely payment will reflect on your credit report thereby adding to your rating. Take the loaned money and pay off the rest of your bills, and contact the credit bureau to verify that your record is cleared of any discrepancies in it. Do not contact the institutions or credit companies, they will not do a thing about your record.

Answer 4

Couple of things:

1. Try Heartland Mortgage. They do 100% financing and they deal with people who's credit isn't the best.

2. If someone lost their home because it was in foreclosure, then they didn't have the money to do the repairs either. If you're already on a tight budget, buying a foreclosed home might not be the best idea.

Good luck to you.

Answer 5

First things first, you need to find out your credit score. Don't assume you have terrible credit without seeing that first. Go to myFico.com; it will show you your scores from the 3 major credit bureaus.

Next, I would avoid the foreclosure route for a 1st home. You can get 100% financing on most others, though, and even and FHA mortgage with 3% down. The down payment can be gifted as well.

Answer 6

If the total amount you owe is just over $2000 try Prosper.com. This is people lending money to people, no middle man. If you are wanting to buy a house don't pay a settlement amount. This will adversely affect your credit worse than just paying the full amount.

Answer 7

It takes a few years for your credit to get back to good standing.

100% mortgage loans are for those with stellar credit.

Answer 8

relies upon on despite in case you will purchase sufficient to regain that $70 in step with 3 hundred and sixty 5 days. in my view, i do in comparison to enjoying cards with costs. in case you return to a determination against it, call them up and cancel it. in case you have not used it yet, they might desire to waive the fee.