Financing in Germantown>Question Details

Joe D, Home Buyer in Montgomery County, MD

Expecting a $53k - $125k settlement. Lawyer/taxes will cut that in half. Can a married couple with no debt but bad credit get a loan w/ 20k cash???

Asked by Joe D, Montgomery County, MD Wed Oct 6, 2010

I went to the hospital for a week or so with no health insurance and ended up owing $60k out of pocket. My wife also had some unexpected financial dilemmas as well. Almost 6 years later, everything is paid off and we've eliminated all debt but the damage has been done to our credit. Our finances are very well in order.

Our rent is $1,300 plus utilities (about $700) and we have never once been late on anything.

I don't care if we have to move out to Hagerstown or Brunswick where you can get a townhouse for $100k. I actually wouldn't mind buying something for under $100k with a $30k downpayment.

The only thing I absolutely need is 3 or more bedrooms and 2 or more full baths. I'd prefer 2.5 baths.

I don't care if it's a fixer upper.

Court for my settlement is Oct. 13th. My lawyer says $60-$75k is a fair settlement to expect. Is it possible to get a loan, any loan, with bad credit but $20k-$40k cash in hand?

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Much will depend on just how bad is your credit.....consider a visit with any qualified loan officer(s), see if you qualify, how much and have your credit score checked as their scoring is often different--if your score needs improvement, your loan officer may suggest great ways to improve it in the fastest time--then go from there.
0 votes Thank Flag Link Wed Oct 6, 2010
Hi Joe,

I recommend using that money to continue re-building your credit history. Or alternatively you might want to look for properties that offer owner financing.
0 votes Thank Flag Link Wed Oct 6, 2010
Sorry to be the bad guy here but in this day and age if you don't have a minimum credit score between 620 to 640 you probably aren't going to find a loan program that meets your needs even with a large down payment. I would recommend that you work with a credit restoration or mediation company, such as Credit Resources http://(, to expunge the past negative credit.

All the while you should be building up new credit files by obtaining a secure credit card. Google "Orchard Bank Secure Credit Card". I know that Orchard Bank will report the credit card to all 3 bureaus. Lastly, for an additional trade line take some of your settlement payment, deposit it with a small local bank, and ask to take out a $1,000 loan to be paid back in 12 to 24 monthly installments. Just make sure that the bank reports to the bureaus.
0 votes Thank Flag Link Wed Oct 6, 2010
Hi Joe - as the others have posted, you need to talk to a loan officer. He will pull your credit, look at income, etc and let you know exactly what you can afford.

Also - there's nothing wrong with saving your cash and renting for a while longer while your credit improves. I wouldn't feel rushed to make a purchase (having said that, $700/mo for utilities sounds really high).

Good luck with your home search. It sounds like you've worked very hard to get through some very tough times -- good for you.
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0 votes Thank Flag Link Wed Oct 6, 2010
Hi Joe,

I'm sorry to hear about your unexpected financial dilemmas. Please call a loan officer I deal with. Her name is Christina Lovell with Prime Lending. Her phone number is 240-405-4883. There is no fee or obligation to go over your credit with her. She is an expert with several loans and she will be able to tell you what you can do or when you could try to purchase something. I actually found my investor a townhome for $80,000 in Brunswick it was a fixer upper but there are definitely a lot of opportunities out there. Please give Christina Lovell a call today and let her know Tammy Durbin referred you. Good luck

Tammy Durbin, e-PRO, GRI, SFR
Accredit REO Agent and Short Sale Specialist
Executive, Directors & Presidents Sales Awards
Long and Foster Real Estate Inc.
cell 240-405-3118
Web Reference:
0 votes Thank Flag Link Wed Oct 6, 2010
Hello Joe D:

The only one that can answer your question would be loan officer. My opinion would be if everything has been paid and it was 6 years ago that you should be ok. If not, I have a loan officer that can work with you to show you how to repair your credit and up your credit score in a short amount of time.

If you wanted to keep your payment close to what your are paying for rent, I would say that you could afford a little more than $100,000.

I am a buyer specialist and would be able to help you find a home that would suit your needs. I work in Montgomery, Frederick, Carroll, Howard and Washington Counties.

Please feel free to contact me on my cell phone or via e-mail and I can get you in touch with the lender that would be able to answer your question. We would know something today.

I look forward to your call.

Thank you, Patty

Patty Smith, Realtor
Buyer Specialist
Office: (301) 831-5600 x404
Cell: (240) 876-3424

"Bring Me Your Dreams and I'll Find them a Home"
0 votes Thank Flag Link Wed Oct 6, 2010
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