cocoa asked:
My family and I are tired of renting. I have a credit score of 530 and admit that I have a bad history of paying on time. I base it on importance first of all. For example, I pay my rent on time every month but I always pay my loan payment about a week late every month. I am planning on paying off 3 loans that I have with my income tax. I should be saving about $420 a month. I calculated that if I pay $500 a month now in rent, I can contribute an additional $400 in paying for a house payment. My husband also just got on disability so this would help out as well. I should be getting a dollar raise next month also. I make about $21,000 a yr but next year should be better. I have been employed for 2 1/2 yrs at the same place and dont plan on going anywhere else. What is best for my situation? I tried buying a home last year but I went with Wells Fargo Home Mortgage since I have a checkings account there. Basicly the guy there told me he couldnt help me with a 500 score and that owner finance would be my best bet. I have looked into owner finance but havent found too many homes out there. My lease ends in a few months and I am tired of living in the bad neighborhood that we live in. I really need some advice. Which would be my best option? Should I wait for my raise next month? Should I wait a month or 2 after I pay off my loans during income tax? Honestly, we want something where we can get the taxes and insurance escrowed.
WILFORD
My family and I are tired of renting. I have a credit score of 530 and admit that I have a bad history of paying on time. I base it on importance first of all. For example, I pay my rent on time every month but I always pay my loan payment about a week late every month. I am planning on paying off 3 loans that I have with my income tax. I should be saving about $420 a month. I calculated that if I pay $500 a month now in rent, I can contribute an additional $400 in paying for a house payment. My husband also just got on disability so this would help out as well. I should be getting a dollar raise next month also. I make about $21,000 a yr but next year should be better. I have been employed for 2 1/2 yrs at the same place and dont plan on going anywhere else. What is best for my situation? I tried buying a home last year but I went with Wells Fargo Home Mortgage since I have a checkings account there. Basicly the guy there told me he couldnt help me with a 500 score and that owner finance would be my best bet. I have looked into owner finance but havent found too many homes out there. My lease ends in a few months and I am tired of living in the bad neighborhood that we live in. I really need some advice. Which would be my best option? Should I wait for my raise next month? Should I wait a month or 2 after I pay off my loans during income tax? Honestly, we want something where we can get the taxes and insurance escrowed.
WILFORD
BRAD
Okay I”m going to be honest your credit score is going to be a HUGE battle. That’s pretty low and I wouldn’t expect anyone to lend you money unless you were in the 700′s. The fact that you betlittle your late payments is a reflection of your credit score.
I don’t mean that as an insult, more or less as an eye opener.
I understand that you’re not pleased with where you live, but I think with a salary of $21k you’ll be in over your head with a mortgage. You have to pay so much upfront.
Comment by Oh Wise One — July 14, 2009 @ 9:36 am
GERARD
You can’t borrow enough with a lousy credit score like that, to buy a DOG house.. let alone a house for people.
In case you don’t watch the news and know the reason for this current mess the world is in, is due to deadbeats buying houses they couldn’t afford and then not paying for the. The days of NOTHING DOWN and NOTHING PER MONTH are GONE FOREVER. To buy a house today you need about 30 PERCENT DOWN and a CREDIT SCORE OVER 700.. anything less… and YOU DON’T BUY THE HOUSE.
Comment by barcovago — July 16, 2009 @ 8:07 pm
WILSON
You might look into a “rent to own.” It’s for people with credit like yours. The agent will look at your credit issues and if they feel your credit score will be improved in a year to two, you can rent a home with the possibility of purchasing. You need to start paying on time!
realtor.sailor
Comment by realtor.sailor — July 19, 2009 @ 7:58 am
WILBUR
I have just got a mortgage for one of my buyers here on long island from a top 5 company on NY for someone with a 580 Credit score and only 3% down. This is probably the lowest I am going to see. It sounds like you need to get back on your feet before you purchase a property. Don’t get depressed save some money pay off some bills and you will be able to take the next step. I would keep renting until then, sometimes those rent to buy situations are not what they seem to be. Good Luck!
Comment by Long Island Realtor — July 19, 2009 @ 8:33 pm
JAY
If you can find a “rent to own” property that someone would be willing to take a chance on you then you might want to go for it. However, it’s going to be tough with such poor credit history, especially since you seem to think it’s ok as shown by your rationalization of your “prioritizing”. Also, some of these “lease-purchase” agreements are not all they’re cracked up to be – so be VERY careful before entering into one of these agreements.
I think the best thing for you at this point is to try to save some money, pay off your debts on time, and get your credit score at least above 600. This way, you will have more options for financing. Although now is a great time to buy a house for those who can afford it, lenders are still a little weary of lower-income, lower-credit applicants (even though it’s their fault they lent $ to people who couldn’t pay in the first place).
Comment by CrazyTraci — July 22, 2009 @ 1:36 pm
GUADALUPE
Yes you are tired of renting but your income and credit score will not let you purchase at this time. Yes you pay the rent first but all bills are equal in your credit score. Add to that you will need money down, money for insurance inspections, pest inspections and appraisals, many time you can get the seller to pay 6% toward closing. Again it is not just your score although that does cripple you tremendously but you have to add the fact that your income does not bare the responsibility that goes along with owning a home.
Comment by Pengy — July 23, 2009 @ 5:53 pm