Home Buying in Palo Alto>Question Details

Eric Holder, Home Buyer in Palo Alto, CA

Can I become a homebuyer even if I have I've had bad credit, and don't have much for a down-payment?

Asked by Eric Holder, Palo Alto, CA Sun Mar 16, 2014

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You may be a good candidate for one of the federal mortgage programs. Start by contacting one of the HUD-funded housing counseling agencies that can help you sort through your options. Also, contact your local government to see if there are any local homebuying programs that might work for you. Look in the blue pages of your phone directory for your local office of housing and community development or, if you can't find it, contact your mayor's office or your county executive's office.

Elijah N.
Lic. TX RE Agent
Gabali Realty®
2 votes Thank Flag Link Sun Mar 16, 2014
Are you shopping for a Home? It may seem backwards to shop for a mortgage before you shop for the house, but there are several reasons for doing this. Shopping for a mortgage will also help if you can get “pre-approved” for the amount you’d like to borrow. This means the lender has looked over your credit and financial statement and agreed to lend you the money. Sellers like pre-approved buyers because there’s less risk the deal won’t go through. First, you’ll find out how much you can borrow, which has a lot to do with how much house you can buy.
1 vote Thank Flag Link Sun Mar 16, 2014
You may want to explore seller-back financing opportunities. If you do have a monthly cash flow that exceeds the mortgage requirement by a good %, you can usually look good to a seller who is having trouble selling his or her home.

So you might also want to explore homes that have been on the market a long time or homes that need work. If you look up La Honda from Palo Alto there are some interesting opportunities up in the woods where the sellers understand that sometimes seller carry back financing is important.

Good luck!
0 votes Thank Flag Link Mon Apr 7, 2014
Go sit down with a mortgage broker and let them figure it out. No cost. No obligation. Just answers.

There are an impossible number of loan programs available that address a wide range of special needs. I have two mortgage brokers who each have access to over 50 lenders and are knowledgeable of the various city, state and federal loan assistance programs. Only way to answer your question to explain your situation and let them figure it out. I'm more than happy to introduce you. One is located in Santa Clara and the other in Los Altos.

In the event that you don't qualify, they will provide you with the specific steps necessary to qualify. Again, it seems impossible to understand what does/does not help/hurt your credit score and what is required to qualify. This will ensure that you do qualify as soon as possible and you will know about how long that will take.
0 votes Thank Flag Link Sun Mar 23, 2014
Eric: FHA has a 3.5% down payment.
The loans will go as high as 625k in our area (SF Bay Area)
As far a 'bad' credit, I would need to take a look at what specifcally you mean by bad.
WIth an FHA loan, 640 is considered a good credit score. Not so much with conventional.
So, it is all relative.
The credit report is a gauge of how you will be as a mortgage payment risk.
If your credit is bad due to late payments here and there it is not as negative as bad credit resulting from a car reposession or defaults on credit cards.
As always, you are welcome to discuss with me through email claudia@divmg.com
0 votes Thank Flag Link Tue Mar 18, 2014
Yes. I would be more than happy to help you. Just send me an email if you have any further questions.

Alex Greer
Loan Officer
NMLS #1056079

http://www.TheMortgageOutlet.com
408-352-5147
AGreer@TheMortgageOutlet.com
0 votes Thank Flag Link Tue Mar 18, 2014
Hi Eric,

It really depends on how bad your credit is right now. If your credit score is at least 580 you can get in with only 3.5% down with an FHA loan.

There are also down payment assistance programs that you may be eligible for depending on your situation.

Feel free to give me a call or send an email.

Best regards,

Elva Wormley
Mortgage Consultant - 32 Years Experience
(408) 615-8500
elva@elvawormley.com
C2 Financial Corporation
2845 Moorpark Avenue, Suite 209
San Jose, CA 95128
NMLS #331981 / BRE #01274093
0 votes Thank Flag Link Mon Mar 17, 2014
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