Financing in Lexington>Question Details

Tom Sadlier, Renter in Lexington, SC

Have been leasing house for 2 years, now would like to purchase. Owner is interested, but I have slow credit. Have not been late with lease in 2

Asked by Tom Sadlier, Lexington, SC Fri Apr 9, 2010

years. How should I proceed to purchase? years. How should I proceed?

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5
Hannah’s answer
Hi Tom,

The seller may be willing to carry financing for you. You make a down payment, they transfer title to you and then you make a monthly payment to them.
You can work on your credit to improve your score so that you can obtain quality bank financing. You can get a mortgage with less-than-perfect credit but you will pay a higher interest rate. You can get through life with less-than-perfect credit it just makes it that much harder.
I have written blogs here about credit score boosting strategies you can read over those and see if that is helpful to you. Good luck!

Hannah Fliegel
The Credit Repair Expert
415-999-9348
0 votes Thank Flag Link Sat Apr 10, 2010
I agree with below, sit down with a mortgage professional to see what might work financing wise with you. If your credit needs some work perhaps you could work out a lease to own type deal with the owner. You'll usually need the services of a real estate attorney to assist you in drafting this type of contract due to the large obligations and monies involved. Some items to look into. 1. What will or would be the purchase price, would it be determined now or at some future date. 2. How will the price be determined, sometimes parties can agree to use 1 licenced appraisal or an average of 2 appraisals. 3 If you can't get financing right now would the landlord be willing to hold a part of a mortgage for a period of time and if so how much and for how long. 4 How will conflicts or problems be handled (this is VERY important) in the event of payments, deposits and repairs, insurance and claims on the property. 5. Might a portion of the rent be applied towards the purchase and if so how much and for how long etc. Ask friends/family/colleagues and other trusted people in your life for the name of a real estate attorney they've used recently and been happy with, most will at least initially consult with you for free. Good luck :)
Web Reference: http://www.MedfordHouse.com
0 votes Thank Flag Link Fri Apr 9, 2010
You need to start by visiting with any qualified loan officer(s), see what your budget can handle and check your credit score again--if your credit score needs improvement your loan officer may have great suggestions on how to improve your credit in the fastest time. Currently FHA loans do require a minimum credit score of 620 and 3.5% down, there may be some lenders that will work with a lesser score, however the interest rate may be higher. If you do qualify for a loan, you need to be aware of recently sold similar properties in the immdiate area--review the data and make a determination as to your offer. Consult with an attorney who specializes in real estate for all related paperwork.
0 votes Thank Flag Link Fri Apr 9, 2010
You can ask your landlord if he would sell the home to you and carry a mortgage on it. You can ask your landlord if he will sell the home to you under a land contract. You & the landlord will both need legal assistance to accomplish these transactions.
0 votes Thank Flag Link Fri Apr 9, 2010
Tom,

First thing is to know exactly where your credit score is? Have you tried contacting a mortgage professional to see if you have a high enough score to get financing?

You can use the find a pro feature up top to find a mortgage professional in your area.

Or if you want, just drop me an email at sean.dawes@LNF.com and I can pass on info to a mortgage professional who should be able to help you in SC.


Sean Dawes
0 votes Thank Flag Link Fri Apr 9, 2010
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