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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Megan Paul’s answer
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
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
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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