Financing in 30606>Question Details

Natalie Jeter, Other/Just Looking in Athens, GA

Is it possible to buy a house with a low credit score?

Asked by Natalie Jeter, Athens, GA Sat Nov 6, 2010

I can afford payments of up to $900. I don't have money for a down payment yet, however I know that HUD has the $100 downpayment. I have a credit history some good accounts and some negative, I would be getting the house with my husband and he has a low credit score and some negative accounts and one or two positive accounts on his credit.

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Have you spoken with a lender to find out what your credit score actually is, Natalie? There is a good one on trulia named Ken Cook who may be able to help. Good Luck!

Michael Hammond

Ken Cook 877-7000-KEN (536)
1 vote Thank Flag Link Sat Nov 6, 2010
Natalie, another option that no one seems to have mentioned yet is a lease-purchase. If you can find a seller who's willing to work with you for a time while letting you rent the property and get used to living there, then it might also provide you with an opportunity to find the right house now. In addition to my real estate team handling sales, we are also investors, and we would certainly welcome someone in a property of ours who could afford that high a monthly payment and eventually purchase a home. Please find my contact info on our website below if that option would interest you--and good luck in your search!

Geoff Wilson
The BBG Team
0 votes Thank Flag Link Mon Jan 30, 2012
Bill I am sorry to say that you are wrong. In the past 30 days I have had two borrowers have their scores increased over 50 points just by being added as an authorized user to thier parents accounts. What changed last year is having an authorized user account will NOT give you a credit score if you do not have one already, but it STILL does help boost the score!
0 votes Thank Flag Link Mon Nov 8, 2010
Bill is correct - consumer credit counseling services where you pay to the credit service and they pay your bills is not a plus for your credit. We do have in-house programs that are not available to non-clients which are amazing to help people get on their feet after a stumble. There is no extra charge to the customer for us using our services to help. We also are the number one source of Georgia DCA down payment assistance programs for a good reason - we know how they work and how to get them done.
Web Reference:
0 votes Thank Flag Link Mon Nov 8, 2010
I hope not. People with bad credit should rent, work on improving their financial status and score, and then in a few years buy a house.
0 votes Thank Flag Link Mon Nov 8, 2010
Natalie, The reply from Bill about the credit counseling is eye opening to me. Interesting to hear one man's opinion. The NOT FOR PROFIT credit counselor that I refer people to locally is opposed to Bankruptcy and educates people on the effects Bankruptcy has on you short and long term. This credit counselor gets a small amount of grant money each month to provide his service. He is not paid a cut by me or anyone else who sends a client to him. There are people in this world who are trustworthy. Those are the folks that I want to surround myself with. Best Regards.
0 votes Thank Flag Link Mon Nov 8, 2010
All good answers except the following: you can no longer use authorized user accounts to boost scores. They did away with that last year. Lenders will not give you credit for authorized user accounts. You must have at least one card open for one year and 2 others open for 6 months. More on that in a moment. DO NOT GO TO CREDIT COUNSELING. We regard that as bankruptcy and you'll have to wait a year before you can buy a house.
With regard to your credit do not pay anything off that's older than a year otherwise you'll have a brand new collection account with a zero balance. Paying off bad debt is not as important as creating good credit. You need to get prepaid secured credit where the company reports to all 3 bureaus but does not pull your credit. Season it for 6 months. Your scores do not skyrocket because you'll have a new account in the beginning and that hurts your scores. You'll have to go down before you can go up. Do not pay off your accounts. Leave a small balance so that the bureau recognizes the account is active. Don't pay anyone to do this. You can do it yourself. I can coach you at no cost. I am a financial counselor so I look at all facets of your money not just where you spend money on a house. You can get money for down payment from GA dream (up to $7500).
0 votes Thank Flag Link Mon Nov 8, 2010
A HUD home or a USDA loan (100% financing) is a good alternative for you. You will need a 620 score to do a loan with most lenders, and there is no way of knowing what your scores are till we pull your credit and counsel you on what you need to do in ordr to raise your score. One of the easiest ways to raise your score is to get a family member with an open and active card with zero or low balance on it with a long payment records of no late payments and have you and or your husband added as an "authorized user". Family member does not need to give you a card, just add you as an authorized user. Then ALL this good credit shows up in 30 days on YOUR credit and gives your scores a good boost. Do this on 2 or 3 cards and your scores will skyrocket. Also, see if you can pay down or keep your credit cards below the 50% utilization mark which will help your score. Worst thing is late payments and maxed out credit cards.

Go Dawgs! Call if you need any help.
0 votes Thank Flag Link Sun Nov 7, 2010
Natalie, a HUD home would likely be a good option for you if you have limited funds for a down payment. All Realtor's have a list of lenders and vendors that they recommend and refer to based on the the individual's situation but the first step would be finding out your score and weighing the options available, a 600 credit score is typically a good starting point right now, I would shoot for getting close to that number before you get serious. Again, each situation is unique and a good lender and Realtor will work with and counsel you to get you where you want to be. Good luck, it's an excellent time to invest in your future!

Erin Groover
Realtor- Keller Williams Greater Athens
(770) 597-7369
0 votes Thank Flag Link Sun Nov 7, 2010
Here I am! Down payment isn't too much of an issue and if you have some credit challenges we really are tops at helping. Best thing to do is give me a call and let's just look at what you are facing. I've worked with a lot of people in your situation and I'll take my time and explain everything as we go.

Here are two things that may apply to you: - Power4Purchase if you have credit challenges - down payment assistance, several programs and we are number one (by a wide margin) in Georgia for these programs

Ken Cook 877-7000-KEN (536)
NMLS ID 208452

Employer: AmericaHomeKey, Inc. 2300 Windy Ridge Parkway, Atlanta GA 30339. Georgia residential mortgage licensee #23191. NMLS ID 15076. Equal housing lender. Subject to errors, omissions and changes. Loans subject to approval
Web Reference:
0 votes Thank Flag Link Sat Nov 6, 2010
Natalie, Great question. I work with ReMax Associates of Athens on Baxter. I have names of Lenders who I trust here in town. Better yet, I have a connection with a non-profit credit counselor who can help you to look at your credit to see if you would be able to purchase a home. It will not cost you anything for his service. He also is excellent at helping people to get a game plan to improve there credit scores or to clear items off their credit history that should not be there. I advise that you do not call a Lender first and have them pull your credit, because if you have multiple Lenders check your credit then it will have a negative affect on your credit score. I can begin by putting you in touch with the credit counselor and then when you all are ready to purchase whether now or later, I can help you find a good home. I look forward to speaking with you.

Dean Bright
ReMax Associates Athens
1055 Baxter St.
Athens, GA 30606
(706)340-1701 cell
0 votes Thank Flag Link Sat Nov 6, 2010
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