We've been looking to buy a house for quite a while now.
Our credit sucks, but we've been working on it for 6 months now... got a secure credit card, pay all bills on time etc.. but the score has not gone up even one point yet...
We're trying to save for a down... but can only come up with 5% because we're trying to make sure all other bills are current (We have 2 sons who take up a lot of the budget)
We've been looking into the rent-to-own or lease-to-own option, but everyone just seems to want to take us for a ride, and rip us off.
I just don't know what to do anymore, I want to get into a house so desperately... we're paying $1200/mo in rent for a crappy apartment.
What else can I do to make this happen sooner?
2007-07-16 04:48:13 · 10 answers · asked by Mom2Boyzz 3 in Business & Finance ➔ Renting & Real Estate
BTW... We're in Southwestern Ontario... and my credit score is 502
2007-07-16 05:02:25 · update #1
I know the feeling. It took us a few years to get our scores high enough and enough money for a down payment and closing costs. Now we are ready and even though I desperately want to own my first home. I am willing to wait and try to find the right home for us. Remember that you may be paying rent for a crappy apartment but it is the fact that you are renting that you are able to save and get your credit back in order, plus you get a place to live for the time being. Just keep your money for the time being in a high-yield savings account.
It does take a long time to get your credit score up, my guess it will take at least another year, maybe more. Just keep paying everything on time and keep putting money away. You will get there. It will seem eternal but IT WILL HAPPEN.
Beware of those rent(lease)-to-own, sometimes if the owner stops paying, you lose everything. Do your research and get contracts for everything. You don't want to flush away everything you have worked so hard for.
Good Luck and be Patient.
2007-07-16 05:03:28 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It used to be easily done, no matter what you credit was, with all the subprime lenders. However, it's still possible to get financing as long as your credit is over 500, the FHA runs a first time homebuyer program, where they can go up to 100 percent financing. I have done 3 loans for bad credit in the past 2 months with them. Keep your head up and find a broker who can help you, you will get there.
2007-07-16 05:03:58 · answer #2 · answered by marxistharpist 2 · 0⤊ 0⤋
Similar thing happened to me because of my credit score. Luckily, I found a company that dealt with "less than perfect" credit and I got a loan. What sucks is because of my credit score, I had a larger interest rate than I could have gotten with better credit.
I went online and applied to a few places. If you can find a place to pre-approve a loan for you, buying a house is much easier. Good Luck!
2007-07-16 05:06:11 · answer #3 · answered by ♥ Sarah K ♥ 6 · 0⤊ 0⤋
It's not easy brining your credit score up, but it sounds like you have a good plan in place. Take a short term loan, then paying it off will also help with credit. Talk to a Banker to see whatelse you can do.
I find that if you develop a good relationship with a Banker, they are more likely to bend the rules to help you out. But so far, it sounds like you are doing a great job.
2007-07-16 14:01:16 · answer #4 · answered by Anonymous · 0⤊ 0⤋
There are plenty of houses to rent, if you have a "crappy apartment". I wouldn't rush into owning a home, if you are having trouble qualifying. Many people thought they were ready for home ownership in past few years and the mortgage industry accommodated them. This is the reason for all of the foreclosures. There are a lot of unforeseen expenses that come along with home ownership.
2007-07-16 05:06:15 · answer #5 · answered by ? 4 · 0⤊ 0⤋
There's a book you need to read "The Richest Man in Babylon"
It's a good set of bedtime stories for the boys, too.
But you are on the right track - just that it's going to take longer than you want to get that house. Thing is, if you keep up the good work you'll eventually get there.
Give up the "i want it NOW!!!! attitude. It took time to get into financial disarray - it'll take time to get out of it. That's all there is to it. Time.
But you're on the right track! Keep your chin up.
Maybe you can get a job and put all you make less commute expenses into a "house fund."
2007-07-16 05:41:28 · answer #6 · answered by Barbara B 7 · 0⤊ 0⤋
It sounds like you are on the right track to getting your credit in order. You might want to look into getting an FHA loan as their rules aren't as credit score sensitive. Some mortgage brokers don't bring up this option because they aren't qualified to do them. Beyond this suggestion, other than finding a relative to co-sign the loan, you just might have to be patient. Good luck!
2007-07-16 05:01:09 · answer #7 · answered by linkus86 7 · 0⤊ 1⤋
If you live near Phoenix or are planning to move there, I might be able to help you.
You may not want to rush into anything right now anyway, there is alot of excess inventory in a good number of local markets which will continue to exude downward pressure on prices.
Depending on where you live, you might be better off waiting for a while anyway
2007-07-16 04:59:17 · answer #8 · answered by Anonymous · 0⤊ 0⤋
I've been reading about more and more foreclosures around, maybe try this route? It would be cheaper--I KNOW exactly how you feel!! We pay around $850. for a small apt. but have a LOT saved .....
and we're looking!!!!
GOOD LUCK 2u!!
you'll find it :o)
2007-07-16 05:45:07 · answer #9 · answered by deirdrefaith 4 · 0⤊ 0⤋
Check into federal and state programs (i.e. FHA) for lower income, higher risk, or first time home buyers.
2007-07-16 04:56:10 · answer #10 · answered by Anonymous · 0⤊ 0⤋