Credit Score in 51301>Question Details

Lauri Myers, Renter in Spencer, IA

Is there any way possible to work with someone who's looking for a home to suit current needs without the credit scores being a damper on them?

Asked by Lauri Myers, Spencer, IA Thu Apr 25, 2013

Have had two slumlords, this is what I am calling them. The one never came to do any of the repairing the current one complained about repairing a water leak and was going to charge us for the repair on his rental we're living in. He's given us notice to vacate at the end of our lease. I have copies of paying rent ON TIME yet our credit scores prevent us from getting into a good home. We have a family member who's going to need to live with us doe to medical condition.

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Lauri,

Have you actually met with a lender yet to evaluate your situation? I suggest starting by going to a local bank and speaking with them. They will have a different perspective then any credit repair company and can tell you what needs to happen in order for you to qualify.

"Rent to Own"- unfortunately doesn't really exist in Real Estate. There is "lease with an option to buy" where you pay $5,000- $10,000 (agreed upon amount) non refundable fee to reserve the right to buy that particular home at a set price for a set time frame. If you don't qualify for a home loan or fail to use the option you do not get your money back... And the monthly rents you've paid does not usually go toward the purchase price; it's just rent.

There's also, "owner carry"- which is when the owner owns their home free & clear; you sign loan docs thru them and make the monthly payments for a certain amount of time; then again, you try to refinance or miss a payment and they can repossess the home from you.

Many owners don't like this because it doesn't help their cash flow at all but sometimes we get lucky.

So, meet with a lender first and then we can determine which route to pursue.
1 vote Thank Flag Link Fri Apr 26, 2013
Lauri,

I am sorry about your situation with your landlords. Unfortunately, I think you are asking if you can buy with low credit scores, and unfortunately not. Lenders will require a 620-640 minimum. If you need help improving your credit scores I have free tips on my blogs here on Trulia or you can call my office as we guarantee to improve your credit scores so you can qualify for a mortgage.

Best of Luck;

Christina Solorzano;
CEO & SR Credit Repair Specialist at
Everlasting Credit Repair
Ex-Mortgage Banker of 10 years
http://www.everlastingcredit.com
1 vote Thank Flag Link Fri Apr 26, 2013
My lowest is a 577 my highest is 649. I still can't qualify. So do all three scores need to be above the 620?
Flag Fri Apr 26, 2013
My suggestion would be to meet with a local real estate agent and also a local lender. Let them figure out what you are able to buy and what it would take for you to improve your credit scores. Let them show you what is available in the price range you qualify for. Even if you cannot qualify now, you can work towards improving your credit rating. I had a client that the lender estimated it would take her 6-8 months to get her credit rating up to be able to purchase but, because she was highly motivated, it took her only 2 months. First, you need to find out where you are and where you want to be.
0 votes Thank Flag Link Thu Apr 25, 2013
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