Improving chances of purchasing a home?

Question

I am interested in buying my first home. I have looked into several downpayment assistance programs and government programs. Any other suggestions would be appreciated.
Here is our situation. Unmarried with 1 kid. I filed bk in 2002. Since then I have had 4 loans with the same bank. These loans are or were paid on time. I did have 1 cc but settled for less than full payment. I do have several medical bills which are in collections. I do have a monthly payment plan set up. The other medical bills, I have set up a budget to get paid off in the next few months. My credit score 574-584. Bf has bad credit just applied for cc. In 2001 car was repossed. Our financial situation is as follows Gross Monthly income 3850 fixed debts 1000. Since we are not married we'll they look at both of our credit reports or work with the one is better and use the income available from the other. Any help would be appreciated. I know there is something out there somewhere.
Thanks to everyone in advance.

live in ohio. anyone aware of any programs available?

Answer 1

I do not lend in Ohio but it sounds like you are close to being able to buy.

You will either need to do a gov't program, of save up a down payment. Nobody is going to finance you at 100% with your credit history on the standard side. Banks are cracking down right now.

http://www.helium.com/tm/226327

Answer 2

I am a mortgage banker in Tn& KY. You are at this point a sub-prime borrower. With those scores 100% loan is just not possible. You need $$ in the bank for down payments or have an investor that is a corp or at the very least an LLC that would be willing to hold a second deed of trust. BF come and go young lady. Qualify for the home on YOUR INCOME ALONE. You must have at least 2 years on the job or at the very least 2 years same line or type of job.
Once you pay all collection accounts then FHA could be an option for you but you have to come to close with your $$. The down payment assistance program will work but you have to have some of your own $$ in the deal. FHA requires a year of clean credit and no open collections. They will still get youa97% loan on your purchase. The last way is to do a land contract or a lease with the option to purchase. This can be risky though. If the owner gets sued and a lien is attached to the home you could well just be out. Make sure any such contract is recorded at the clerks office in the county where you will live.

Answer 3

Sounds like an FHA or my community loan may be good in your situation.

Generally they look at who makes the most money and use them as main borrower. If you share a bank account you can (hide) who makes more money by using all of the deposits in your bank account as family income and go by who has the higher credit score. This is still considered a full document loan.

You can get some information about bad credit mortgages at http://www.fivestarsmortgage.com/bad-credit-mortgage/.

There is a buyers toolkit that explains many of the often confusing aspects of home buying at http://www.fivestarsmortgage.com/buyers-toolkit/.

Best thing you could do is find a mortgage broker you trust and have them help you find out the best approach for getting financing in your situation.

Answer 4

If you want some good free consumer information on first time home buyer loans and how credit effects your down payment and interest rate on your mortgage, visit this free consumer site at http://www.mortgageawareness.com