I would like to buy a first home,,but I have credit issues what can I do?

Question

I would like to purchase a home ,,my Fico score is bad like 430! but I have very few issues really, a past credit card that I didnt pay, I only owe them 900,, should I pay it? now? its been 5 years now! I also can put at least 30 thousand down, I would like to purchase a 150 thousand dollar home! Should I wait like 6 months pay off the CC an attempt to help my FICO score, or leave that CC alone it clears in 2 years an just buy a house now while the markets good an rates are low? what kinda of mortage options will I have with poor credit? One last question I will be buying with my Bride to be that has awesome credit high 700's what should I do?

Answer 1

FICO score up, Rates down. Bigger cashdown, low interest charged.

Good thing to get clean before buying a house.

Get your card paid (if they accept - not sure)

Buy your house in 6-12 months.

Good luck !

Answer 2

If your score is 430, wait. You'd get a horrible rate. Pay off past bills and talk with whom ever the bill is with and bargain with them and tell them you will pay this if they in turn will immediately take this off of your credit report. Wait for your fico to go up. Or you could do this. If your bride's fico is 700 and she is working and her salary is high enough put the home loan in her name. Let it be known up front that the loan will be in her name. All the papers as far as the loan is concerned she will sign. Your name will be on the deed though. The mortgage on our home is in my husband's name since he is the one that works and I don't. My score was higher but since I don't work now could not use me. Only use her though because if you both are on the loan they will have to run credit check on you as well and take both scores and that will bring the score down and interest rate up. With poor credit you would probably get a high rate that would be flexible and then after a year or two the rate would go up again. With her as the buyer rate will be a lot lower. I would also advise to get a fixed rate. I would also consider putting all the assets in her name so that she can show that as hers. With a 700 fico you should be able to get a very low rate. If you have at least 10 to 20 percent down. On a home that is 150,000.00 on a 30 year mortgage with 20 percent down and an interest rate of 6.50 payments would probably be about 758.00 monthly and don't forget you will have taxes and homeowner's insurance. Also closing cost will have to be considered on the loan unless you are buying from somebody that is willing to pay this. Good luck and hope this has helped you....

Answer 3

Hi, firstly paying your credit card at this point will not help your credit score in fact it actually could hurt it. Check your states statute of limitations on credit debt, it may be up and you can send them a letter saying so and they can no longer collect. But if you wanted to pay that $900 I would try to offer them $300 settlement. Anyway, there are several loan programs for "bruised" credit buyers. They come from what are called subprime lenders. They specialize in loans for people with less than perfect credit. However the problem is they are usually super high in interest rates. At a 430 credit score to be honest and depending on your income your going to be looking at a 9.5 -10+ % interest rate. It depends how much money you have and how desperate you want the house. Your monthly payment on a 150k house at that interest rate would be around$1300 a month. However since your bride to be has great credit and congrats on getting married by the way. You may want to look into her buying the home depending on income. She will get a MUCH better interest rate. And make sure to get a fixed rate. Dont get an ARM. Just my advice.

STUART

Answer 4

1. Speak with a financial advisor. This is too important to mess with.

2. Pay of the credit card IMMEDIATELY. Pay off ALL debt and be prepared to prove it to the loan officer. Keep one or two cards, use them wisely, and pay them off every month.

3. It may take a while to repair your credit with proper behavior. You might think about taking the mortgage in Bride's name prior to the wedding. If you want it in both names, you'll have a wait a while.

Answer 5

I was made to believe you could coax the credit card to improve your listing with the credit bureau by talking to them about paying off the bill. They don't need to know you have $30,000 just tell them you would be willing to begin paying on the bill again if only they will upgrade the rating.
That should help a great deal and will determine the interest rate you pay.

Answer 6

I would pay the cc off immediately. I would then look at company websites to see what there expectations are. You can then gather all this information and then make an application that should be successful. If it is not then you missed something so be thorough in your research.

Answer 7

Maybe you should pay up ur credit card in instalments & just go ahead for the Home as it might appreciate if you will delay.

Answer 8

if you are interested now in purchasing a home, that would be possible eventhough you have a bad credit. you may consider your bride to be as your main borrower since she has a good credit.

for further questions just e-mail me....

Answer 9

Honestly, what you need to do is GO TO A MORTGAGE COMPANY, a FINANCIAL ADVISOR, and perhaps a CREDIT COUNSELOR, and STOP wasting time here! You need the adbice and guidance of professionals. You and your bride need to go there together and ask these questions.