I've just completed teaching my first year in FL. I want to buy my first home but my credit is poor (I took some massive hits last fall/winter when we moved down here - long story).
There are many incentives for teachers to buy homes:
http://www.floridahousing.org/Home/HomebuyersRenters/FTHB/DefaultFTHB.htm
I'm especially attracted to the loans that offer a 4% grant or loan for the down payment / closing costs.
It sounds like if I go for one of the high rates it fixes for 5 years, I'll have to refinance again and pay all of those closing costs again (ack!). But in the same sense, I'm confident that my house will go up in value (it's in a prime area and we're in a housing slump).
Will they still give me that 4% loan with my credit score in the high 500s?
I don't want to go fishing for loans because my credit will take hits and I've been very careful. It has gone from the low-to-mid 500s to where it is now.
I'm married and my husband makes a tad more than me but with a lower score
2007-07-14 01:16:52 · 9 answers · asked by Florida Teacher 2 in Business & Finance ➔ Renting & Real Estate
The 4% grant/loans you're speaking of usually require a credit score of 720 & above. There are lenders right now that are give 100% financing with a 580 credit score (as a full doc loan). There is an upside & downside of you buying a property right now. The upside is you will be buying a home with today's prices. The downside is you will be paying a rate of about 8.50%.
Weight out your options and discuss with your husband what will work best for you. If you need a Mortgage Broker then please feel free to contact me.
Good Luck!
2007-07-16 05:01:36 · answer #1 · answered by Suzy_305 3 · 0⤊ 1⤋
You're going to need to take a reasoned approach to this. With your credit scores you're well down into 'B' or even 'C' paper territory. The resultant interest rates are going to leave you with a crushing debt to pay off.
If you can rent for less $$$ per month it would make much more sense to rent for a couple more years and work on bringing those credit scores back up and save towards a down payment and closing costs. You really want to get those scores up at least another 100 points to be looking at anything close to reasonable rates.
Run the numbers with the programs that you're eligible for and compare that to your current housing cost as renters. If your monthly costs are comparable to what you're paying now it might be worth going for it. But keep in mind that homeowners insurance in FL is EXTREMELY expensive so be SURE to get quotes on that and figure that into your monthly costs as well. If you don't, you may be in for an nasty surprise at closing when you find out that your monthly cost is going to be double what you were expecting.
FYI, multiple credit inquiries for the same type of loan product over a short period of time are scored as a single inquiry. Applying through several lenders will not affect your credit score any more than a single application would. That said, no lender needs to pull your credit to give you a good estimate of what you'll qualify for if you know your score and already have a copy of your credit report. They will have to pull it to finalize the deal but if you've been honest with them there won't be any difference other than the usual market fluctuations.
2007-07-14 01:46:13 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
This Site Might Help You.
RE:
Florida teacher seeking a mortgage with poor credit?
I've just completed teaching my first year in FL. I want to buy my first home but my credit is poor (I took some massive hits last fall/winter when we moved down here - long story).
There are many incentives for teachers to buy...
2015-08-24 02:55:56 · answer #3 · answered by Betsy 1 · 0⤊ 0⤋
There is a whole bunch of things you do not want to do--like look for a loan??? Can't buy the house with out a loan.. You and hubby both have bad credit.. How much bending over back wards do lenders have to do to help you... Bad credit automatically means hiigh interest rate. The credit rating stinks already what difference does it make if lenders do a search. I get the feeling that you done some of this leg work already and were denied credit???
\You and the hubby work jobs and pay off the bad debts then reapply for a home loan. ... You really do not want to buy a home now at the very peak of the market.... Buy a home on land contract from the owner... Cut expenses and no shopping spree. Your paying debt not making your ego feel better by shopping sprees...
Work hard and cut expenses and pay off debt for 2-3 years. or feel sorry for your self and forget about being a home owner...
The ball is in your court...???.
2007-07-14 01:58:01 · answer #4 · answered by Gerald 6 · 0⤊ 1⤋
If you are able to get the property now at a lower price than you will in 2 years then I would "go for it." I am a Mortgage Broker who lived in Florida most of my life. I think Florida is one of the hot markets for buyers right now. You will pay a higher interest rate, but you will be able to get the property for a much lower price now than in 2 years from now. If you can afford the payment I say go for it. Also stick with a fixed rate even if you get a sub-prime loan, sub-prime banks are pushing fixed rate loans and most times they are just as low as adjustable rates. Also look into 40 and 50 year programs, they will give you lower payments will still paying off some of the principal.
2007-07-14 02:02:54 · answer #5 · answered by Albert M 2 · 0⤊ 0⤋
If your credit score is poor, you can't get a mortgage, and they won't consider your income on a joint mortgage application. If only his credit is good enough, then only his income would be considered. Sounds like you need to get your credit score up, then try again. This will likely take a couple years.
2016-03-17 23:16:57 · answer #6 · answered by Anonymous · 0⤊ 0⤋
What you might consider is talking to a Realtor, to see what other options you may have. Sometimes there are sellers that are willing to do a contract for deed with say 10-20% down.
If you want I'd be glad to have someone call you, just let me know. I'm licensed in Florida, but live in Minnesota at the moment.
Let me know if I can help further, just email me.
2007-07-14 01:57:29 · answer #7 · answered by Anonymous · 1⤊ 0⤋
I doubt you will qualify for that loan, that "established credit worthiness" piece will shoot you down.
You can ask, what will it hurt?
Although I know you have been working hard to repair your credit, you may need some more time to distance you from the bad situations that caused your credit debacle.
2007-07-14 13:57:49 · answer #8 · answered by godged 7 · 0⤊ 0⤋
Doubtful. I'm sure those rates are for people with credit scores above 700. You both need to fix your credit scores. stop spending, pay off credit cards - make all bill payments on time, save money - don't soend foolishly. It will take time
2007-07-14 01:24:28 · answer #9 · answered by Anonymous · 0⤊ 1⤋
ALL so called lenders from Overseas are Scammers.
LOAN SCAM - Do Not Pay UpFront Fees.
2007-07-14 07:23:50 · answer #10 · answered by Mr. Blue 4 · 0⤊ 1⤋