Is there any hope in me buying a home?

My soon to be wife and I are trying to buy a home. I have been turned down by everyone. My credit score is 521, according to credit karma and 611 on credit sesame. I keep hearing my problem is I have never had revolving credit. I have never owned a credit card or had a loan. I don't make much money, 22,000 a year but i have absolutely no bills. The home we found is only 30,000. Is there anyone who would help me? All advice is welcome! I'm so stressed about this! We currently live in separate houses with family and it's just hard not being together as a family with our son.

8 Answers

  • 7 years ago
    Favorite Answer

    Your credit score is ok for an approval through FHA. You might be required to have a larger down payment.

    Buying a house is a step by step process, this is the first step you should take in order to purchase a house. The rest of the steps will fall in place, no matter the type of property you are purchasing.

    In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, you can find one in your local telephone book.

    Make sure this mortgage broker or mortgage banker is able to do government loans such as USDA, FHA and VA loans if you qualify for one. With a VA mortgage loan you are not required to have a down payment, this will save you on closing cost.

    He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.

    The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.

    When you speak with the mortgage broker you will need the following documents to complete the loan application, there will be others, but this will get you started.

    #1 One month of pay stubs for each person that will be on the mortgage.

    #2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.

    #3 Two years of federal income tax along with the W-2 that match.

    Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home. In this pre-approval letter will be the amount of house you are qualified to purchased.

    Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.

    Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments.

    If you are getting a FHA, fixed rate, two loans to eliminate PMI like an 80/20 or one loan, if you are qualified for and approved for a 100% loan.

    You should select the loan that best suit your financial condition at the time. That could be an adjustable rate loan. It could be a fixed rate loan for 5 or 10 years and then adjust. Some adjustable rate mortgages only adjust once.

    Make sure your mortgage broker explain all your options so you may make an intelligent decision.

    What might be good for one person might not be good for you, in other words just because your friends and all your real estate buddies are telling you about the great fixed rate they got, your financial situation might call for something else.

    So select the best option for you and your financial situation.

    You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.

    Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign. Your mortgage broker will now order an appraisal to show proof of the property value.

    The mortgage broker might ask for additional information or documentation, don't get all up tight this is normal, just supply the information or find the documents needed.

    After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.

    Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.

    I hope this has been of some benefit to you, good luck

    "FIGHT ON"

  • Anonymous
    5 years ago

    I'm confident that you might find all financial solution at=

    RE Is there any hope in me buying a home?

    My soon to be wife and I are trying to buy a home. I have been turned down by everyone. My credit score is 521, according to credit karma and 611 on credit sesame. I keep hearing my more

  • 7 years ago

    That credit score is TERRIBLE. To buy a house you need a score of at least 775.

    You need credit cards to build a credit score . Without a high credit score you can't buy a house, a car,furniture or appliances. It's admirable to try to live without credit or credit cards. But the simple fact is you need them (and a high credit score) to purchase anything major. That is the way the business world operates. Your current mind-set has not been rational since 1960. No one will sell you anything without good credit

    You should get GOOD credit cards (go to to find the highest rated cards with the best terms). Use them every month to buy something. I buy $10 worth of groceries every month and then pay it off right away in full. That will help build your credit score but it will still take at least 5 years to do that. You should also be saving money for a down payment. You'll need about 20% of the cost of the house to use as a deposit. If you don't have 20% you will be forced to a higher interest rate and will also have to pay mortgage insurance every month. There is no sense to be looking looking at a $30,000 home or any home because you can't afford it at this time.

    To get your REAL credit score you should sign up at MYFICO.COM . FICOi(Fair Issacs Corp.) is the company that invented credit scores and the only credit score I would believe is a credit score from them.

    Credit Karma and Credit Sesame ? You're kidding of course. These are not reputable credit reporting agencies. There are only three credit reporting companies...Experian,TransUnion and Equifax. and MYFICO tracks them all.

    Every US citizen gets one FREE credit report per year based on a new consumer law passed a few years ago. Google 'free credit report' and the name of your state to find out where to get the report. You are entitled to it once per year.

    Good luck.

  • 7 years ago

    521 will not get it STOP running your credit because your only losing valuable points, Also the average min loan amount is 50k (but Im sure some go lower). Now you have not mentioned your "soon to be wife's" income or credit will she be on the loan?. To get accurate and informative answers a whole scenario has to be given with most of the details described. A house for 30k tells me your not in California however a good loan officer should be working with you guys on ways to improve your credit, savings income e.t.c so that you will become his clients in the near future.... onwards and upwards good luck!!

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  • 7 years ago

    Maybe if you have money in your account, money that is seasoned in your account meaning it's been there for a long time to cover a down payment, hopefully 20% of it or more, and with consistent income, it will help. Otherwise you better open some credit cards, and not just any you can apply to. Getting turned down on a credit will also make your credit look bad. Ask around to find whats easiest to obtain in your area, usually Capitol One or maybe even store credit cards. Start using them and build a solid history.

  • 4 years ago

    Well you don't want a complete crash of the housing market because it is a major part of our ecomony. I understand your concern for prices in Florida. The market here in Minnesota has seen some market correction in the last 1 1/2 - 2 yrs. Prices might not go down, but the equity gains seen in the past few years will not be evident. And seller contributions will increase, which is what is going here now. If the Fed's keep holding on interest rates, the market could rebound to a more normal cycle. But I dont' believe we will see a hot market for some time.

  • E&L
    Lv 7
    7 years ago

    You need to not only see your score, but what has caused it to be so low. Usually a score that low is due to delinquent payments, bounced checks or collection accounts. Check to see that the information being reported is correct.

    With that said, you may not make much money, but the bank also wants to know how much you have saved for the down payment.closing costs. They also want to see that you have not only worked at the same job for a while, but your savings is enough to cover 3 - 6 months of payments if you get fired.

  • 7 years ago

    Look into the rent to own homes. Check Craigslist in your area. You will need a small down payment and meet their income requirements. Make sure if you use a rent to own company you check them out with the BBB 1st. and maybe even have a attorney look over the paper work before you sign it. If you are lucky you will find a owner who is willing to rent to own for 20 or 30 years but they usually require a 10-30% down payment. My best to you & your family.

    Source(s): Life experience
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