Home Buying in 95670>Question Details

Leah Parker, Renter in 95670

Can I buy a house with bad ok credit.?

Asked by Leah Parker, 95670 Fri Dec 17, 2010

My husband short-saled his house 2 years ago. His credit score is 520 and mine is 670. We want a house thats around 150,000, and we have saved 5% downpayment so far. He hasn't been paying his credit cards for the past 2 years due to failed business, and afraid to file bankrupcy....

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Bill Eckler’s answer
The common thread here is one that we agree with completely. Assuming additional debt at this time just does not seem to be the best decision and your personal position would be best supported by a financial advisor.

0 votes Thank Flag Link Sat Dec 18, 2010
Consider clearing your debt(s) before considering a purchase, any mortgage outside your budgetary constraints can dramatically alter your overall living conditions....
0 votes Thank Flag Link Fri Dec 17, 2010

What you're describing above would all but rule you out for conventional loan financing these days. I might also ask if you are current on your tax returns? Sue (below) correctly mentions that you must get your credit history in order so that you can someday get mortgage financing. It is also important that your tax filing history is clean. If you're having a problem with this second aspect, you should call Bob Crane at Ameritax (415-475-4070) before you file for 2010. He can address any IRS issues if they exist and there is tremendous peace of mind once this happens and it sets the stage for better things ahead.

Thank you,

Rob Spinosa
0 votes Thank Flag Link Fri Dec 17, 2010
In trying to acquire a mortgage, your credit report will show the likelihood that you can handle the responsibility of consistent payments of the mortgage for 30 years. What you describe does not demonstrate that ability...yet. Contact someone like Blue Water Credit, that can help you understand your credit situation, and help you develop a plan to start the habits needed. Consistently paying your obligations over a period of time will increase your credit score, but also help you in all of your financial planning.

Last, I strongly recommend that EVERYONE read 'The Richest Man in Babylon'. it is the best book to understand how to develop 'financial intelligence' on how to build towards responsible financial planning.
Web Reference: http://www.suearcher.com
0 votes Thank Flag Link Fri Dec 17, 2010
Get out of debt first, depending on how much your debt, with the short sale he can buy a home after 3 years after the short sale, however if your credit score stays low the ability is slim to none at this point. You might be able to get a home from a owner that will do owner financing.
0 votes Thank Flag Link Fri Dec 17, 2010
Why would you want to take on a huge debt - and commitment - that is a mortgage when you still owe money to others that you can't pay? Before you consider buying property, you should probably consult with a financial advisor/credit counselor. Your question is not one that a real estate person should answer.
0 votes Thank Flag Link Fri Dec 17, 2010
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