how to own your own home living paycheck to paycheck?

Question

how do we buy a house w/no down payment and not good credit. i dont have a score, and my husbands is in the high 500's. we have 2 kids and no cash. it feels like no one is ever gonna finance us. what do we do? we both have decent income's and good work history but it's not enough? any ideas?

Answer 1

Although you won't like my answer, Don't buy. Rent until you are on better footing. Live on a tight budget and save, save, save. In time, things will come together for you. Don't rush into a mortgage, only to default later, damaging your credit score even further.

Answer 2

Remember the EVIL MORTGAGE INDUSTRY? They used to give people like that a chance with 100% ffinancing, stated income, and adjustable rate mortgages..... even allowed seller to pay almost all closing costs. But then guess what happened?

So many people couldn't actually afford to own their own home and it became the mortgage industry who was the villain for giving all those people a once in a lifetime opportunity to qualify for a home mortgage! And now most of those lenders are out of business and the United States is facing a recession. So chances of a paycheck to paycheck person ever owning a home without great credit and large down payment? ZERO to NONE!

Answer 3

I'm sorry but you don't. If you can't qualify, your only other options are rent to own, or lease to own. Neither one will put good things on your credit report because you primarily deal with an owner instead of a company. But the only suggest I can help you with is to work hard to pay off your debt in a timely manner, live within your means.

Now if you haven't been to a lender yet, do that. I know it's hard to have them tell you no. But they are the professional, they look at your whole financial picture to see if they have a program that may work for you. Ask about FHA loans. To be absolutely sure you can't qualify, you need to check with a lender. And do me a favor, don't use an internet lender. They will tell you what you want to hear and when it goes bad, you won't be able to get them on the phone. You want to be able to talk to someone face to face. We're talking a lot of money and I wouldn't put my faith in what lenders on the internet will tell you. Best of Luck!

Answer 4

If you both have a decent income then why are your scores so low? At this point in history with credit and the economy as it is you are right no one is going to finance you. Pay down your card to less than 30% of their limit that will help, and get some money in the bank reduce your available credit to debt ratio. .My belief is instead you will fall for one of the scammer's trying to sell you your dream, only to see you posting in a year or so how do I get out of this foreclosure. Think about it

Answer 5

Go to your local community action agency, and explain your situation. There are programs that will provide a down payment and a low interest rate; there are programs that provide $10,000 down and HUD comes in to fix the house so it is up to code; there are various other programs, you just have to go look for them. If your community action agency can't help you, go to the Red Cross, and the Salvation Army, and even try a Realtor. They may be able to help you apply for grants or fill out paperwork.

Good luck, and remember: house payments should never exceed more than 30% of your monthly income.

Answer 6

What you do, is take each of your paychecks, and take 3% of it and put it aside. No matter what, do not touch it, and that little amount wont hurt you. After you have so-and-so amount, you can do whatever you want with it.

For the time being, keep doing what your doing, and good luck!