Home Buying in 90024>Question Details

Yvette, Home Buyer in Los Angeles, CA

Can I buy a home in this current market with bad credit?

Asked by Yvette, Los Angeles, CA Mon Oct 20, 2008

My husband and I are trying to buy a home. His credit is in fair condition but my is awful. Can he buy the house by himself? or would we be turned down because of my credit score? What are my options? Thanks

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Everything has changed, Fred, but for many people it is still the same. I am beginning to work with clients who sold their house short over 3 years ago. As you know, they can buy a new house. They have served their time, so to speak. So the question is current and relevant to many people. Especially to anyone who was involved in a short sale. If they want to buy again, and now is a great time with low rates, they have to get their financial ducks in a row. I recently helped a client who sold short 4 years ago for over 9 months; not looking at houses, but getting them prepared for preapproval. Once we got that done, they were pre-approved and within weeks put an offer in on a new home and are building the house of their dreams. Their lives changed after they lost their home. Lots of moving from rental to rental, with 4 kids. And these were people with good jobs and highly educated. They had a terrible personal loss, and in turn because their house was so upside down they lost it. These were not people who took out huge seconds to buy cars and boats and vacations. Maybe you don't get called all the time with this question, I do. You answered it again too, Fred.
2 votes Thank Flag Link Tue Oct 30, 2012
Do you have an emergency fund? Why did your credit score go so low? Is it time to reorganize your budget so that you are in charge of your money? I would make sure that if you buy a house you can both contribute your fair share. You live in a community property state. If your credit is bad and your husband's is only fair, you might have to sign off on the house, meaning you quit claim all rights to your husband. It is a sticky wicket. Kawain is absolutely right. Work together to pull up both your scores and then go for an FHA loan. Good luck!
2 votes Thank Flag Link Mon Oct 29, 2012
I can't believe anyone is still answering this question from 2008!

Everything has changed!!!!

I hope Yvette, your credits have gotten better and you were able to buy a house that you qualified for or are still renting because of your situation.
1 vote Thank Flag Link Mon Oct 29, 2012
Hi Yvette,
yes there are ways to buy a house with your bad credit, however be prepared to put down a larger percentage of a downpayment . My best advise would be to talk to a mortgage broker who can help you with possible options.
If you dont have anyone to talk to, shoot us an email and i would be happy to refer a few brokers to you to choose from.
Good Luck
Best Regards,

LA Real Estate Group
Lou Arakelian
Alex Golshan
1 vote Thank Flag Link Fri Oct 24, 2008
Fred, Trulia is an information highway and of course if the original person asking the question is not watching, maybe someone else with similar situations are? So do you ever get a call or contact from someone other than the person asking the question. I thought so, YES, good luck.
0 votes Thank Flag Link Fri Nov 2, 2012
Hello Yvette, Yes but I would need to know what bad credit means to you. If you have a minimum 580 fico score, you may qualify for CHF Access half percent down payment program which can also contribute towards your closing costs as well. I only need to ask a few dozen questions to qualify you to buy.

I specialize in Under 640 Fico Score Loans and offer credit repair at no cost to raise fico scores to qualify. If your fico is below 580, you will need 10% down so let's look at the whole picture and see what needs to be done to qualify for a mortgage. Do you have down payment and closing costs saved? If not, this CHF ACCESS program will be a great option.

Here is a flyer and needs list to gather for processing a loan approval.

CHF Access half percent down flyer, pdf

Sheryl Arndt, standard needs list checked, pdf

Why Rent brochure

CHF Access income limits http://tinyurl.com/8lzf8he

Sheryl Arndt, Real Estate Broker – Sr. Loan Officer
REO & Short Sale Specialist
20+ Years Experience
DRE# 01140252
NMLS# 297251
0 votes Thank Flag Link Fri Nov 2, 2012
Do not attempt to buy a home if you have BAD CREDIT>>>>anyone who tells you your credit score does not matter is misleading you.

Instead try to work on improving your credit scores, and applying for a home loan once you get your scores to at least the FHA min score.

Best of luck to you!

Kawain Payne, Realtor
0 votes Thank Flag Link Mon Oct 29, 2012
Hello Kawain, Bad Credit with fico scores between 500-579 require 10% down and minimum 580 fico scores may qualify for CHF Access half percent down payment program which can also contirbute towards their closing costs as well. I specialize in Under 640 Fico Score Loans and assist Agents/Brokers clients throughout CA for the many progams other Lenders don't offer. Let me know if you ever have anyone that I may be able to assist in their mortgage so you can show them homes to buy. I also do FHA NO FICO Score with alternative credit to qualify. Check out this site.
I also offer credit repair at no cost to raise fico score to qualify. I work directly with the bureau and get corrections within 3-4 days the same as rapid rescore except I don't charge anything like they do $30 each account per bureau. Let me know if I can be of any assistance as I believe anyone that wants to buy a home and can qualify, should be able to live the American Dream of owning.
Flag Fri Nov 2, 2012
He may be able to buy by himself. The lender will consider debt-to-income -- meaning how much he owes compared to how much money he makes. The lender may also be able to give you some informatin on how to improve your credit score. Talk with a mortgage broker and give them the details. They will be able to give you more information. Usually, it is more difficult to get a loan through a bank.
0 votes Thank Flag Link Mon Oct 29, 2012
I've a perfect score, sufficient income, willing to put 40% down but was still rejected because I changed from W2 to 1044 (independent contractor) some 8 months ago. So everyone has rejected me for a conventional loan. Ridiculous.
0 votes Thank Flag Link Mon Oct 29, 2012
Yes you can. FHA might be an option for you Yvette. A lender would have to see what is it in your credit report that is affecting your credit report.
0 votes Thank Flag Link Tue Oct 21, 2008
Yes, there are ways. There maybe assumable loans. There are what are called Creative Assumptions. There are other standard loan type, even c-signers can help. You just need a professional agent (real estate and mortgage) that can help.
0 votes Thank Flag Link Tue Oct 21, 2008
Hi Yvette.

It is hard to get you a straight forward answer without looking at the whole financial picture. My lender Mitch Waldstein at Platinum Capital can help you. He has helped previous clients of mine with less than perfect credit. He was even able to help raise my client’s credit so they could qualify for a better loan. He will tell you that credit is one thing, lenders will also look at income and your savings. He does these great spreadsheet that will estimate your monthly payment and closing costs so that you’ll know exactly what you are getting into. Mitch’s email is mitch@mitchwaldstein.com.

Yoshiko Oest
Shorewood Realtors
0 votes Thank Flag Link Tue Oct 21, 2008
Hi, Yvette. FHA loans are usually a little more forgiving and are not necessarily score-driven. Let me know if you would like to have contact info for a senior loan officer that is very knowledgeable about the loans that may be available to you or if you would like to attend a home buyers seminar.
Web Reference: http://www.dotchance.com
0 votes Thank Flag Link Mon Oct 20, 2008
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