I don't have really good credit and my husband's credit is in the toilet from his first marriage. We agreed not to ever buy a house unless both our signatures are on the paperwork. How can we buy a home and do you think that a lease option is the best way to go. We live in Jacksonville , FL
2007-01-17 10:42:38 · 4 answers · asked by cpaige517 2 in Business & Finance ➔ Renting & Real Estate
Lets look at what will really help you based upon your situation.
Contrary to what some might recommend, here is a plan that many in the mortgage business are either unaware of, or wont recommend because they wont profit off you as fast. Do the lease option and leverage the time to your advantage. Take the year option period and clean up your credit report. Get a copy from www.annualcreditreport.com they are the only free credit report website that exists. You only have to pay for a scored report. You dont need a score yet, just the report. You will have time to raise the score and remove all the derogatory info during your lease term. E mail me and I'll show you how at no cost. Dont send me the report ! Next step, You will have the lease option payments written up on a promissory note and a collection of payments set up at a local bank. By doing this you will establish a payment record over time at a bank that will also help build credit. You can apply for a home loan at that same bank in a year and they will have your last years payment history in hand on their letterhead. Your interest rate today with bad credit will be a bit high. In a year a better credit interest rate will be close to the same, maybe even a bit lower. The lease term gives you time to see if the house really will work well for you. A lender will use the primary wage earners credit score if both incomes are required to qualify. You have a year to clean up credit, build credibility with a local bank, and see if the house will work. Also your purchase price is frozen at todays cost. In 12 months you could either be into a great deal, or change your mind and walk if the market goes flat. Theres your benefit in doing the lease option.
2007-01-17 18:17:36 · answer #1 · answered by Kevin H 4 · 0⤊ 0⤋
If you feel you are financially ready to buy a house, then you should go ahead and do it. If your credit alone is good enough to qualify for the mortgage, his name can still be on the Deed of Trust, so you will both own it.
A lease option can be a good option. It works best for people who do not have the savings for a down payment. Part of your monthly rent will be put toward the future purchase. Also, living in the property you will see first hand any problems it has. Downside is they will probably want you to prove that you will be able to be approved for a mortgage.
2007-01-17 11:30:01 · answer #2 · answered by Scott B 3 · 0⤊ 0⤋
There are many factors to consider including what your score actually is (580 can get you 100% financing) , your income, the value of the home, etc.
Fill out the free evaluation form at:
www.totaldebtsolutionsllc.com
and we will have a loan officer contact you.
2007-01-18 02:36:06 · answer #3 · answered by CALIFORNIA GOLD 3 · 0⤊ 0⤋
I am a Loan Specialist and I can work with bad credit....if you are curious to see what kind of quotes I can get you feel free to contact me! I work with about 250 lenders throughout the U.S. which allows me to work with different scenarios, difficult, easy, complicated or not....Im sure I can help you guys out! No worries!
Call me anytime!
Linda Munoz
Loan Specialist
www.lindamunoz.net
2007-01-20 12:55:41 · answer #4 · answered by Yay Linda! 2 · 0⤊ 0⤋