English Deutsch Français Italiano Español Português 繁體中文 Bahasa Indonesia Tiếng Việt ภาษาไทย
All categories

In the Los Angeles/San Fernando Valley region homes are 450,000 plus. I can muster 5% down, but with my credit score am I just dreaming about buying a home or do I have a chance?

2007-09-05 07:17:23 · 7 answers · asked by littlemoglie 1 in Business & Finance Credit

7 answers

As you may or may not know it is very difficult to buy a house now for people with low credit scores (less than 700.) The stock markets are falling and companies are failing because they lent money to people who were not creditworthy at ridiculous rates they could not afford. So to be blunt you don't have a lot of opportunity now as it stands, but that's not to say there isn't hope. First let me say that for you it may be cheaper and more financially sound for you to rent until you either get a better credit score or the housing economy improves again (which can take years). Fixing your credit score though won't take as long so focus on that for now.

It doesn't take long for short term changes like account balances, payments, and available credit to show up on your credit report and effect your score -- likely these are the things to have impact over the short term, and you have a better change of fixing your score if you try to address one of those issues, which you can do easily in a matter of weeks.

Here are my 10 steps you can use to build your credit score quickly. I raised mine to well over 700 points fro 500 using these steps in less than a year:

1. Know and Track Your Credit Score (be sure to sign up for the free trial of your credit score monitoring listed on the article below. It really helped my get my score up.)
2. Never Miss a Payment, Starting Today
3. Never use more than 20% of your Available Credit
4. Keep Credit Cards that Have No Annual Fees Open For as Long as Possible
5. Extend Your Credit Limit on Cards You Already Have before You Get New Ones
6. Get Credit Cards that Have CashBack Rewards to Contribute to your Balance
7. Transfer Your Balance to a Credit Card with a Lower Interest Rate and a Higher Available Credit-
8. If You Think You Are Going to be FORCED to Pay a Bill Late Ask for an Extension or Payment Plan
9. Take out a Small Personal Loan and Repay it Over a Year
10. Ask Someone With Good Credit if They will Account Shadow you

When you're trying to build a solid credit score it's important to get a comprehensive view of what is actually effecting it...

Your Credit Score (also known as your MyFico score) is calculated with the following breakdown:

* 35% - Payment History
* 30% - Credit to Debt Ratio
* 15% - Credit History
* 10% - New Credit
* 10% - Credit Types in Use

If you excel in one area and lack in another, only fixing the areas which you lack are going to improve your score.

You can read more about these tips on my blog:
How Can I Increase My Credit Score

* http://millionster.com/articles/debt/ask-1mil-how-can-i-increase-my-credit-score/

2007-09-05 20:56:03 · answer #1 · answered by Millionster 3 · 0 0

Definitely NOT with a bank, maybe a mortgage broker BUT you would have HIGH interest rates! Consider a Rent To Own, You agree on a written price with the owner then you pay the owner monthly payments a portion goes towards the purchase price and a portion goes into rent (like 50% 50%) THEN when your credit score is improved you get a mortgage from a bank. It is a win win because the owner gets monthly income and his asking price when you are able to purchase it. Another option would be owner financing. People are only getting about a 5% return on their money right now SO if an owner wanted to sell to you and finance with you you could agree on 8% and then the owner would get a better return.

2016-05-17 10:14:55 · answer #2 · answered by ? 3 · 0 0

Can you actually afford a $450K house? Would that payment be 25% or your monthly income?

I know there's a rule of thumb that the price of the home should only be a certain number times your annual income. I'm not sure what the number is but I think it's like 3 or 4.

Also, isn't California one of the states with the big bubble burst? You may want to wait and let the housing market settle before you buy. A lot of the home values are adjusting downward.

2007-09-05 07:45:50 · answer #3 · answered by bdancer222 7 · 0 1

Yes. Your credit score usually just determines the interest rate on your loan. You have a relatively good score, in the 2nd or third bracket I believe. (Somewhere above 750 is the highest, best bracket, then above 700, then above 650. These are all approximate and I am not a professional.) So, technically you can get a house with any credit score, but you will have to factor in the interest rate/payments regarding how much house you can afford. Good luck.

2007-09-05 07:25:09 · answer #4 · answered by David P 2 · 0 2

Here in florida where I live you must have a score of 700. the reason being is they want to know you can afford the property tax too and the insurance . It is really exspensive to live here . If I had my choice I would leave but hubby loves it here and has an excellent job. good luck .

2007-09-05 07:30:50 · answer #5 · answered by Kate T. 7 · 0 0

Oh my goodness. I nearly got one with a 530 score in Alabama. Imagine what you can do. That is pretty good. You may have a fairly high interest rate but nothing dramatic.

2007-09-05 07:22:29 · answer #6 · answered by Anonymous · 0 2

check this link its good


http://workathomeandearnmoney.blogspot.com/


.

2007-09-09 05:18:48 · answer #7 · answered by Anonymous · 0 0

fedest.com, questions and answers