Hello Brenda,

It looks like you have quite a few good answers below, but I want to add a few items that I hope will be helpful. Depending upon the type of loan you're looking for, it isn't always that the credit score is bad, but more why it is the way it is. Example, if you incurred bad credit due to job loss, illness, death in the family, or other things like that, FHA and other local agencies could still work with you but it would require proof of the problem and other documentation. FHA is a great resource, and even has programs that would allow you to buy a home while in Chapter 13, provided certain things are met, including the trustee approval.

I have included a link to the El Paso Housing Authority which has the HACEP program for low income folks who want to purchase a home, if that is why your credit is bad. And I would recommend talking with them first before spending money on credit repair because not all of them work but can cost a lot. And if you're moving to another city in Texas, check with their housing authorities to see what they offer, as an example Houston offers a program similar to El Paso's, and they work in conjunction with FHA.

I hope this helps, and I wish you the best. Feel free to contact me if you have any other questions. Take care. Jerry G.

Tue Apr 29 2008, 16:19

Hi Brenda, I would suggest talking to a mortgage company to see what your financing options are. If you would like me to put you in touch with an excellent local lender, let me know.

Sun Apr 27 2008, 06:20

I have clients, a husband and wife, who have less than stellar credit. They've been wanting to buy a house, but didn't know how they could do it with their poor credit.

I put them in touch with one of my lenders (Wells Fargo), and he was able to advice them on how to repair their credit. They have started to pay down their debts, took the First Time Home Buying Seminar, looked into various programs that the City offers as well as other Home Buying Assistance programs.

We have just made an offer on a short sale. And while waiting to hear back from the lender (which could be 30-45 days), ithey have more time to take more steps to clean up their credit. Both of them are grateful for the advice they received from the lender.

Bottom line: start with your lender, listen to then implement their advice.

Sun Apr 27 2008, 01:26

Brenda,

There is a program out there called NACA, a non profit organization that gives loans based on character lending. They look back at the last two years of payment history and what your budget is like. Depending on each individual depends on the length of the program.

I have sent several of my clients through this program and they have been very pleased.

Give it a try

Sun Apr 27 2008, 01:04

I sold my credit repair company that I owned for 10 years, I am also a Texas home mortgage loan officer, and a Dallas real estate agent

It all depend on how old the debit is if it is less than 2 years your best interest to wait for credit repair, however if the debit is over 2 years then go thru credit repair good companies usually can have your credit repaired in approx. 60 - 90 days.
If you are current late pay that will kill your credit score drop it by at least 30 pts. for each accountIF you owe more than 50% on your credit cards pay off the balance DO NOT CLOSE THE ACCOUNT that will increase your credit scores
You loan is based on mid -score where did the 500 credit score come from? A credit score "purchased from the internet does not give you a true credit score,... confusing some of these credit scores I have seen purchased from the web is not even close to a credit score for a mortgage

Sat Apr 26 2008, 16:56

Brenda,
Some lenders actually have programs that will help you get your credit up to the point where they can get you financed. I have a lender here that will get the client on a program and it may be only a month or two as long as you follow their guidance. Sometimes it is a few little things that will help alot.

Larry Story
Coldwell Banker Triad

Sat Apr 26 2008, 15:10

Contact a local mortgage lender right away and ask for advice in getting your FICO score up. They can tell you what loan programs you might qualify for immediately.

Sat Apr 26 2008, 14:58

The only way to find the answer to your question is to be honest and upfront with the lenders you contact. As you know lenders have tightened their criteria and it is much more difficult today to obtain a loan with a low credit score. However, if you can demonstrate regular employment history and beginning evidence of loan and credit card cleanup, there may be a lender who you can work with.
Now is a smart time to buy due to the fact of low interest rates, increased inventory and adjusted prices.
Are you able to put down a larger down payment then the usual 10 to 20%? Are you able to secure a second job? Are you willing to pay a higher interest rate on a mortgage? If you can answer in the affirmative you may be on your way to home ownership! Good luck!!

Sat Apr 26 2008, 14:48