bruised credit home loan?
My husband and I want desperately to purchase our first home. We've been living in the same rental home for the last 3.5 years, with a perfect rental history, and are just plain tired of renting. The problem isn't his credit score, which after a year and a half of work on both our parts, is now VERY good, it's mine. My score isn't AWFUL, it's around 580, mostly an issue of not enough credit, since I don't use credit cards, and have only recently co-financed a small amount of a car purchase, and we just can't seem to find a way to get a mortgage loan. Seems like every direction we've been pointed in leads us to someone who is just trying to get money from us. I have no credit card debt on my report, only med. bills, and one judgement, which I have been paying on for a while now, and can easily get a letter of proof to that effect. We both have stable jobs that we've been at for at least a year each, and decent income level. We just need a little bit of a break, and someone to recognize that we're making the right steps to improve my credit, and aren't as big a risk as I guess we look like on paper. Very frustrated, and not at all sure what direction to even go in. Should I get a credit card? I really don't want/need one, but perhaps it would help the credit issue some. Suggestions?? Help??!
- OthnielLv 61 decade agoFavorite Answer
Have you approached the owner of the home you are currently renting? Does he own it free and clear? Would he be interested in selling it to you? You may be surprised.
However, if you really don't like that house then work with a real estate agent who can show you homes with owner financing. That is probably the best approach for now, but if you work hard enough on curing your credit in about two years you should be able to get into a home of your own.
By the way, do all of your due diligence if you buy with owner financing. Get everything in writing and have a real estate attorney write up the agreement. Have the house inspected, get an appraisal and a survey. You don't want to go on a verbal agreement or with someone who cannot legally sell.
- UpintheAirLv 71 decade ago
When you spoke to a mortgage lender, did they give you some advice on what to do to improve your credit score?
Actually 580 is right on the border of pretty bad. And the lender will look at the middle score of 3 of the person with the worst credit, not the one with good credit.
In deciding to qualify you for a loan there are a lot of factors the the lenders consider.
Are you perhaps trying to qualify for an FHA loan or one with very little down? For that you would need good credit.
To make your chances to qualify better you would need a good sized down payment; at least 10%
Don't go to someone "trying to get money from us". There will be loan origination fees, maybe $300-500.
Getting a credit card isn't going to help with what is on your credit report.
Your statement of "only med. bills, and one judgement" sounds like a negative under any circumstances no matter that you can prove you are paying it off.Source(s): Realtor
- 1 decade ago
Many people have been stuck with bad credit for a long time. For such people, bad credit home loans are a real blessing. This loan gives an opportunity for such people to also own a house. Normally, when lenders dispense such loans, they ask for the creditscore and analyze it. However, in the case of a bad score the lender does not ask for the credit score. So even if you have a poor credit score, you can avail this home loan without any worry. How do you choose the best deal for a home loan?
It is of utmost importance that every borrower should do a lot of research and find out who is the lender best suited to his needs. Even when you are opting for a home loan when your credit history is not good, you can look around and choose all that is best suited to your financial situation. You do not have to take the very first opportunity that you get only because you suffer from bad credit. If you have such an attitude and go in for a long with a high interest rate and tough repayment schedule, then only you will suffer. You may end up being not able to meet the commitment and this may worsen your financial credit score.
- wintleLv 43 years ago
Ask. verify around. ( in case you hit upon a corporation from an internet advert, do analyze on the corporation's acceptance till now you sign papers! i discovered one that sounded magnificent, yet virtually all the comments have been very destructive.) verify your interior reach economic corporation. verify credit unions; while you're no longer a member, consistent with probability you qualify and can connect for the sake of the indoors maximum loan. do no longer supply up with one; verify numerous. in case you the two have good-paying jobs, are you able to easily save up and pay for the renovations separately, as you get the money? i know you want it fixed unexpectedly, yet debt could be crushing if one among you loses their job.