MaineHousing has a down payment assistance program called "Gift of Green" which provides up to $2k with down payment/closing cost assistance: http://www.mainehousing.org/programs-services/homebuyer/home and Portland even has an assistance program too: http://www.porthouse.org/homeownership/voucher_homeownership but it does restrict you to using their mortgage programs/less choice of lenders.
If you buy outside of Portland, like for example in Westbrook/Falmouth/Scarborough, you may be eligible for USDA financing (income limits apply) which is 100% financing/no down payment, and if the home appraises for over the purchase price you can use that difference to finance your closing costs. Lenders are preferring a 640 score for that program since it allows them to go easier regarding what is on your credit that is bringing your scores down. If your income fits within the "Direct" limits, then you can even bypass a mortgage lender and apply directly with USDA, but prepared for a wait, it usually takes about 2 months to get pre-approved and they can run out of funds (typically towards end of the fiscal year, September) http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do is the website to check for eligible areas & if your income (it's household income, not just the people on the loan) would be eligible. Interest rates are very low too (just like FHA's).
Conventional financing could potentially be another option, but with a 620 score & less than 10-20% down, it'd be on the tougher side.
If you need assistance figuring out a plan on how to get yourself into the best position to qualify I'd be happy to help.
Shane Milne | Loan Officer in Orange County, CA | NMLS #81195
Direct local #'s: 949-273-4161 or 646-257-4842
Lending in all 50 states, all types of mortgages
We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.
It is unlikely you could be approved for mortgage financing with that credit score at this time.
Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.
First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.
Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.
I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.
Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE.
The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.
The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.
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I would suggest contacting a lender that has knowledge of credit and can guide you in the right direction.
Usally what you may think is logical in fixing your score will actually make it worst.
Best of luck and if you have any questions, feel free to contact me.
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Tel. 480-893-5858 - Mobile 480-203-6183 â€“ Scott.Mendez@BBVACompass.com
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