Financing in Hutto>Question Details

Ktgarno85, Other/Just Looking in Hutto, TX

I am interested in buying a house i hutto. I just paid all my dept off but my credit score is really bad. I have 10000 to put down and i make 3000

Asked by Ktgarno85, Hutto, TX Tue Oct 26, 2010

dollars a month. Do you think i could get a house for 150000?

0 votes Share Flag Financing in Hutto

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I have a house in Hutto I would be willing to owner finance if you are interested email me at it is 17 hundred square feet 4 bedroom 2 bath
0 votes Thank Flag Link Mon Dec 3, 2012
Did you sell your house?
Flag Mon Apr 29, 2013
There are few ways to rebuild and establish credit and I would be more than happy to help guide you.

These days you will need at least a 620 or better for FHA & USDA financing. FHA would require a 3.5% down payment and is more lenient with negative credit you may have had in the past. USDA financing requires a 620 as well but if you qualify you can purchase a home with no down payment. USDA financing is considered a Rural Development loan and many homes in Hutto will qualify for the program so long as you meet the criteria for the loan.

If you would like more details on these programs feel free to contact me at your convenience. Thank you and good luck.

Elliott R. Oliva
Mortgage Planner
NMLS # 353884
512.825.8309 phone
0 votes Thank Flag Link Fri Dec 31, 2010
$150,000 sales price may be a little high...your new monthly mortgage payment should not exceed 31% of your gross monthly income and your TOTAL monthly debt (with the new mortgage payment) should not exceed 43% of your gross monthly income. These ratios can sometimes be exceeded if you have other "compensating factors.

I have lived in Hutto since August 2005. I am also a mortgage loan officer in Austin, TX and have been a licensed real estate agent in Texas since 2004. I would be more than happy to assist you in anyway that I can. In my 6 years of real estate, I have helped many clients repair their credit and restore their purchasing power. Please feel free to contact me if you have any questions.
0 votes Thank Flag Link Fri Dec 31, 2010
Hi Ktgarno85

Depending on the amount of debts you just paid, when you did it, whether or not they were credit cards that were nearly maxed out, if you had any 30+ days lates and when, if you have any collection less than 2 yrs old, whether or not you closed any credit cards after paying them off (A MAJOR DO NOT DO!), and what your credit score was prior to paying everything off, your score may or may not rebound to where it needs to be within the 30-60 days.

When it comes to your income, 150,000 loan may be a stretch. But that may depend on how much you put down, and what the property taxes, HOA (if its a condo or a sub with home owner assocaition dues) and home owner insurance are. But typically 3K a month is good for a 100,000 - 110,000 loan. If you go FHA, you may be able to stretch that to 125,000. But, again, that depends on a number of other factors.

You need to speak to a knowledgeable loan officer.
0 votes Thank Flag Link Sat Dec 4, 2010
I am with a homebuilder. We have that question asked many times. Sounds like what you really need to do is open a new card so that the lenders will have a new history for you. For instance, Opening a 500.00 credit line but only using 100 of it and paying it off would show the lender that you have re-established yourself. Do it again the next month and again the next. It will raise your credit score...BUT don't take just my word. We have credit specialists that are dependenable that we work with. I would be happy to get you in touch with one of them.
Does that help?
Thanks for asking a question that many people have.
LloydWayne Homes
0 votes Thank Flag Link Sat Dec 4, 2010
I am with Keller Williams and we have an office in Hutto. There are many good lenders out there who can provide information on how to put yourself in the best position to buy a home.

Give me a call at 512-743-8281so we can talk.
0 votes Thank Flag Link Wed Oct 27, 2010
It's a good question for a lender. You do want to have "good" debt like car loans and make timely payments which allows history to build. You want history, ratios, and payment history to build credit that may have been damaged. Your debt to income ratio will dictate the purchase amount you are approved for as well. Contact your local lender and if you don't have one interview a Realtor in the area as well for their advise on one they work with that is honest.
Laura Myers
Keller Williams Arizona Realty
0 votes Thank Flag Link Tue Oct 26, 2010
I would look for a local lender.
If you need a few names let me know.
0 votes Thank Flag Link Tue Oct 26, 2010
well i dont have any credit cards. Most of them were collections for medical bill and along time ago i left an apartment for saftey reason so i had to pay that off. Thats about it. Im not in a rush to buy a house right now. I would like to build up my credit but i dont know the best was to do that.
0 votes Thank Flag Link Tue Oct 26, 2010
If your score is below 620 you will need a "hard money" loan or seller financed.
0 votes Thank Flag Link Tue Oct 26, 2010
It depends on how long ago you paid the debt off. You would need to get a statement from the creditor that was paid off and make sure it gets submitted to the credit bureaus as proof. If they were credit cards, it would be in your best interest to not cancel them all together, because if you do, then that reduces the amount of credit you have available. This information comes from experience. I have an excellent lender that could counsel with you and find out exactly what you would need to do and how long it would take to get your credit in good shape.
There are also Owner Financed properties that you might get into sooner, and then after your credit builds back up - within 2 - 5 years, you could refinance and pay off the owner.
There are numerous homes in Hutto under $150,000....I don't think that would be a problem.

Would love to visit with you and see how I could help you.

Susanna E. Boyer, Broker-Associate
Sellstate Classic Realty
Serving the Round Rock, Hutto, Georgetown area
Web Reference:
0 votes Thank Flag Link Tue Oct 26, 2010
My first concern for you is that you state you paid off all of your debt. Do you have anything that you are paying on that reports to the credit agencies? If not your score will not improve as there is nothing positive that will help increase your scores.

How do you know your credit score is really bad? When is the last time you had your credit pulled by a mortgage company? What you consider bad may really be good enough to qualify.

My office is in Hutto and I wouuld be happy to help. Please give me a call when you have some time and I will be happy to review your credit report with you and create a plan of action to help you get into a home when you are ready. Thank you
0 votes Thank Flag Link Tue Oct 26, 2010
Your credit score may be a problem if it is really a problem. You also mention paying off your debt but you need to consider your other expenses. Your next step should be speaking to a local mortgage lender who can tell you what you are facing and how much house you can afford.

Good luck.

Millie C Lumpkin
Century 21 Pro Team
0 votes Thank Flag Link Tue Oct 26, 2010
Don't be in such a rush. Take a few months, consult with a Mortgage Lender, see whats on your report and if there are items that you can get removed. Pay your bills on time, put some away every month for probably 6 months, use a credit card ~ but pay it off COMPLETELY EVERY month! You would be surprised at how fast your score rises and how low the interest rate will be. With this Foreclosure Crisis happening nationwide, you should still be able to find a home at a rate you can afford. In a neighborhood you really want to be in.

Good luck!
0 votes Thank Flag Link Tue Oct 26, 2010
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