I have poor credit and I want to buy a home. I'm trying to look into foreclosures or repos but there are not a lot of websites that I can go to. What would be the first steps to owning my own home. I don't have any money saved up or anything. I want to lease to buy or rent to buy but there are no websites for that. What steps should I do to get my home. I have been renting for the last 5 years and I want my own home. What should I do? I live in Arkansas...!!
2007-02-15 15:13:38 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
Depending on what you are making, you can probably get a loan amount for around what you are paying in rent. From there you can figure out how much you can take out. Since arkansas dosnt have a high price for homes you could probably get a nice place for under 150K. over a 30yr fixed loan with 6% interest your monthly payment would be under 900 dollars. Again, whatever you are paying for rent you can pretty much figure out what you can buy.Because you have poor credit, you will have a higher interest rate, and if you are putting nothing down you want a piggyback loan 80/20. You will have to pay mortgage insurance but that will be covered in your loan.
Now there are plenty of options. You can do a Lease to buy, in which you lease the property, pay as you do rent and it is put down towards the purchase price of the property, and if you dont want to buy it, then you are under no legal obligation. If you want to own a single family home, you can take out a loan, and based on your credit you will get a low or high interest rate.
Just remember this if anything.... EVERYTHING IS NEGOTIABLE ! If they give you a price, or interest rate, ask? is this the lowest you can give me? Is this the lowest you have? They will try to screw you, so be careful! Shop around for lenders! Get PREAPPROVED, lenders will preapprove you and your credit to as to how much money you can take out. From there you can shop around and see what house you want. Shop around and get the best price and best loan for you...
Good luck!
2007-02-15 15:34:08 · answer #1 · answered by TheDiciple 2 · 0⤊ 0⤋
You have to SAVE MONEY. I have been telling my relatives, that can't seem to get it together, that there are real estate companies that sell houses in good condition, for no money down, and low income loans. I have found in my neck of the woods Thousands of these properties.
YES the neighborhood is rough, but the mortgage with taxes is less than my relatives are paying for rent. If they STOP PAYING $700 A MONTH and pay the Mortgage of $485 , they could put $200 in the bank account for each month of a two year cycle. They would earn equity in the house, have close to $5,000 and look for a house in a better neighborhood. If they got lucky and found a foreclosure, they should know that I would be digging deep in my stash to help them get it. If they buy a new house, they could rent the one they bought so that the new mortgage has a back up payment plan. BUT THE POINT IS THAT THESE PEOPLE HAVE TO SAVE THE MONEY.
NO: YOU NEVER HAVE ENOUGH, the expenses will always be more than you have. When you have all of the expenses covered and there is still more income WORRY, there is something sneaking up on you. RELAX; just save your money.
2007-02-15 15:32:23 · answer #2 · answered by whatevit 5 · 0⤊ 1⤋
speak with a mortgage broker and have them look into your credit. they will tell you the things you will need to change and maybe can hook you up with a credit repair company (not credit counseling). i had horrendous credit and got my house, at a higher interest rate. you can include closing costs in the loan but i'd suggest working on your credit. they will need to verify your income and thats a large part of the loan so make sure you've had a stable job for awhile and start putting some away in savings too.
2007-02-15 15:24:34 · answer #3 · answered by anonymous 6 · 0⤊ 0⤋
I would try to clean up your credit first. You would be surprised how fast your score can go up in a matter of months. Pay ON TIME for the next 6 months and your score will go up.
2007-02-15 23:12:47 · answer #4 · answered by KathyS 7 · 0⤊ 0⤋
Yes I agree clean up your credit then you get your loan for your house good luck
2007-02-16 16:59:00 · answer #5 · answered by pattibcacl 6 · 0⤊ 0⤋
I know nothing about buying homes but could you get a co signer?
2007-02-15 15:24:02 · answer #6 · answered by Anonymous · 0⤊ 1⤋