Home Buying in 28412>Question Details

Aundreeuh, Home Buyer in 28412

Credit scores: 527, 563, 572. Paid over $50,000 in rent w/in 6 yrs.Makes me want to vomit. Over $50,000 in student loans.What kind of shot do I have?

Asked by Aundreeuh, 28412 Mon Jan 9, 2012

My credit scores dropped to 527, 563, 572 thanks to 18-year-old-me. I'll be 26 in March of this year and knowing I've spent over $50,000 within the past 6 years in rent makes me want to vomit. Due to my COMPLETE and utter stupidity, and pure ignorance and no knowledge whatsoever when it came to finances, I got into credit card debt at 18 and started drowning. I ended up getting student loans to pay off the credit cards, but then I'd get more cards. I have $51,835.94 in private student loans. I ended up doing a debt settlement program w/ Care One Credit, and I have an estimated total of maybe $4,500 left in credit card debt for cards mostly that have been closed since I was about 22. I have no car payments, always paid rent on time (never late), no other debt other than student loans and credit cards. Do I have ANY shot of getting a house, even if it's with a massive interest rate? I'm in North Carolina....if that matters.

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16
As everyone else has shared, it's doubtful you will be able to qualify without investing more time in getting your credit rating up.

However, qualifying for a mortgage is not your only option to purchasing a home. Many people that have had to deal with damaged credit issues are finding success by seeking leas-to-own and owner financed opportunities. Taking this approach factors your credit score out of the equasion and places you in a much better position.

Consider seeking a realtor that has the ability to ferret out these opportunities and possibly this can make something happen for you.

Good luck,

Bill
1 vote Thank Flag Link Mon Jan 9, 2012
Aundre, okay, so you were young, you made mistakes. You sound a bit desperate, and I don't want you to compound the problem by making more now. Start by getting a free credit report and make sure every thing on there is correct. Continue making your payments on both the student and the credit card debt. In time, you will get those scores back up, and will be able to qualify for a mortgage. Rome wasn't built in a day, and you can't expect to wave a magic wand to fix this problem, you're going to have to dig yourself out, dollar by dollar. Maybe in a year or two you will qualify. And I don't think the market is going to be that different then.
1 vote Thank Flag Link Mon Jan 9, 2012
NACA will be happy to work with you. NACA does not use your credit score in any manner, though we do work with you on resolving any charge-offs or collections that have happened in the last two years, and your bill payment history must be on time for the past 12 months.

The NACA program offers no down payment, no closing costs, a fixed below market interest rate, and the ability to buy down the interest rate even further, potentially to near zero.

Just go to the NACA website at http://www.naca.com and sign up for a free Home Buyer's Workshop.
0 votes Thank Flag Link Sat Apr 18, 2015
Hello Dear Sir/Madam.

I am Mr. Harley, a private money lender. I give out loans with an interest rate of 3% per annual and within the amount of $1000.00 to $500,000,000.00 as the loan offer. 100% Project Funding with secured and unsecured loans are available. We are guaranteed in giving out financial services to our numerous clients all over the world. With our flexible lending packages, loans can be processed and funds transferred to the borrower within the shortest time possible. We operate under clear and understandable terms and we offer loans of all kinds to interested clients, firms, companies, and all kinds of business organizations, private individuals and real estate investors. Just complete the form below and get back to us as we expect your swift and immediate response. EMAIL : harleypoul12@gmail.com

Attention!!!

Do you have a bad credit?
Do you need money to pay bills?
Do you need to start up a new business?
Do you have unfinished project at hand due to bad financing?
Do you need money to invest in some area of specialization which will profit you? and you don't know what to do.

We offer the following loans below,
personal loans[secure and unsecured]
business loans[secure and unsecured]
combination loans
students loans
consolidation loans and so many others.

1. Full Names:............................
2. Contact Address:.......................
3. Loan Amount Needed:....................
4. Duration of the Loan...................
5. Direct Telephone Number:.................

Email harleypoul12@gmail.com

Best Regards,

Mr Harley Poul
0 votes Thank Flag Link Mon Mar 23, 2015
I am sorry for your painful learning experience. I suggest paying down or paying off whatever your were late on, and then calling the creditors and asking if they will remove the late payment . Those late payments can stay on your credit for years. Having them removed will help build your score. Typically, we like to see a score of 640 or more for FHA, USDA loans. Options are avail for scores at 588 and higher..... if you can pay off those old credit cards, I think it would help!! Contact a mortgage officer and let them check your credit and help you repair it. Good luck!
0 votes Thank Flag Link Wed Mar 18, 2015
Hello Dear Sir/Madam.

I am Mr. Austin, a private money lender. I give out loans with an interest rate of 3% per annual and within the amount of $1000.00 to $500,000,000.00 as the loan offer. 100% Project Funding with secured and unsecured loans are available. We are guaranteed in giving out financial services to our numerous clients all over the world. With our flexible lending packages, loans can be processed and funds transferred to the borrower within the shortest time possible. We operate under clear and understandable terms and we offer loans of all kinds to interested clients, firms, companies, and all kinds of business organizations, private individuals and real estate investors. Just complete the form below and get back to us as we expect your swift and immediate response. EMAIL : austin_gift@yahoo.com

Attention!!!

Do you have a bad credit?
Do you need money to pay bills?
Do you need to start up a new business?
Do you have unfinished project at hand due to bad financing?
Do you need money to invest in some area of specialization which will profit you? and you don't know what to do.

We offer the following loans below,
personal loans[secure and unsecured]
business loans[secure and unsecured]
combination loans
students loans
consolidation loans and so many others.

1. Full Names:............................
2. Contact Address:.......................
3. Loan Amount Needed:....................
4. Duration of the Loan...................
5. Direct Telephone Number:.................

Email austin_gift@yahoo.com

Best Regards,

Mr Austin
0 votes Thank Flag Link Thu Mar 5, 2015
Hello Dear Sir/Madam.

I am Mr. Harley, a private money lender. I give out loans with an interest rate of 3% per annual and within the amount of $1000.00 to $500,000,000.00 as the loan offer. 100% Project Funding with secured and unsecured loans are available. We are guaranteed in giving out financial services to our numerous clients all over the world. With our flexible lending packages, loans can be processed and funds transferred to the borrower within the shortest time possible. We operate under clear and understandable terms and we offer loans of all kinds to interested clients, firms, companies, and all kinds of business organizations, private individuals and real estate investors. Just complete the form below and get back to us as we expect your swift and immediate response. EMAIL : austin_gift@yahoo.com

Attention!!!

Do you have a bad credit?
Do you need money to pay bills?
Do you need to start up a new business?
Do you have unfinished project at hand due to bad financing?
Do you need money to invest in some area of specialization which will profit you? and you don't know what to do.

We offer the following loans below,
personal loans[secure and unsecured]
business loans[secure and unsecured]
combination loans
students loans
consolidation loans and so many others.

1. Full Names:............................
2. Contact Address:.......................
3. Loan Amount Needed:....................
4. Duration of the Loan...................
5. Direct Telephone Number:.................

Email austin_gift@yahoo.com

Best Regards,

Mr Austin Gift
0 votes Thank Flag Link Wed Mar 4, 2015
Aundreeuh,

Your median score is what lenders use for your credit so although you will unlikely qualify with traditional banks and mortgage brokers, you may be able to make a case to a credit union or a local lender such Corning Credit Union or North State Bank that will hold the note. There are also statewide and local programs that can help with loans as Vivian suggested. Believe it or not you can repair your credit in a relatively short amount of time and you rate not terribly far off from where you need to be. You need to be proactive and work with a lender that can advise you in getting your score up. Don't worry, you have plenty of time to buy as interest rates will remain low for much of this year and there will be plenty of inventory at great prices when you are ready.

Good Luck!

Peter
0 votes Thank Flag Link Sat Jan 21, 2012
Jeff is right, you need to get in touch with a lender to walk you through the process. In the meantime, don't close any of your current credit cards and make sure you don't open any new ones. I have an in house mortgage broker I work with as well as a credit solution company that would be happy to help you. You are on the right path making the right choices. Good luck!
Cori McQueen
910-231-3286
Web Reference: http://www.corimcqueen.com
0 votes Thank Flag Link Mon Jan 9, 2012
Go to your local non profit housing group for credit counseling. The counselor will go over your credit report with you. They will tell you what you are doing wrong and what you should be doing. Listen to them and when your score is 640+ you can think of buying.
0 votes Thank Flag Link Mon Jan 9, 2012
With those credit scores, you're probably not going to be able to buy. A loan officer can advise you better, but--frankly--I doubt it.

However . . .

While you have a right to beat yourself up a bit, I think you're being a bit harsh on yourself. First, unfortunately, a lot of college kids make the same mistakes you made. You're not alone. So while the decisions you made were unwise, recognize that--for whatever reasons--people your age haven't been educated on finances the way folks were maybe 20 or 30 years before.

Second, you're unhappy that you spent over $50,000 in rent over the past 6 years. Look: There's nothing wrong with that. That's about $695 a month. Was that wasted? Not at all. You needed some place to live, didn't you. The choices would have been renting, buying, or perhaps living with your parents. Leaving aside living with your parents (if that were an option), then you're left with renting or buying. OK: All you have at this point are receipts for the rent you paid. But you received something: A place to live.

Consider the alternative. What if you'd bought 6 years ago? First, could you have bought something you'd have been happy with, spending just $695 a month for principle, interest, taxes, and insurance? Maybe something costing $40,000? Let's assume you could have . . . and that you did.

Six years ago, you'd probably have gotten 100% financing, perhaps with one of those particularly ugly loans--negative amortization, maybe. You'd have had no equity to begin with. Now: What have real estate prices done in the last 6 years? In some lucky areas, they've remained pretty much flat--they declined, then have recovered to almost where they were 6 years ago. In other areas, values are still 30%-50% lower than they were 6 years ago. So, let's assume you'd bought 6 years ago for $40,000. And let's say that prices in your area have been pretty good; assume that they're only 10% below the peak when you would have bought. (I'm only guessing, but I'm pretty sure values haven't gone up significantly.) So you'd have bought at $40,000. You'd have paid $695 a month (maybe more once the teaser rate expired). Today, not only would you have no equity, but you'd be $4,000 upside down. And if you wanted to sell, you might end up paying another $2,500 in commissions and a few thousand in other expenses.

My opinion is that you've been better off renting these last 6 years than having bought at the top of the market.

You obviously shouldn't have gotten student loans to pay off the credit cards. You can't get rid of those student loans, even with bankruptcy. But what's done is done. You can beat yourself up about that. Still--sadly--lots of graduates are leaving college with over $100,000 in student loans. You made a mistake, but it could have been worse.

So: What do you do now? Speak to a good loan officer or mortgage broker. But (and this will sound funny coming from a Realtor) don't be in too much of a hurry to buy. And specifically, don't be willing to accept "a massive interest rate" just for the privilege of buying. It's not worth it. Interest rates may go up a bit in a year or two, but they'll still be below any "massive interest rate" that you'd be paying today.

If you're within, say, 2 years of being able to purchase, you might consider a lease-option. They're not right for everyone, but could be good for you. But work with a Realtor who really knows and understands them. And, again, only do it if you'll be in a solid position to buy within 2 years.

Again: You probably did the right thing by renting, not buying. Lots of people in their early 20s (to say nothing of late teens) don't understand money management, run up credit card debt, etc. You know better know; that's good. And while it was a mistake to use student loans to pay off credit cards, what's done is done.

Move ahead from here. Don't be desperate to own; you've probably got another 50 or so years to own property. You don't want to rush head-long into another series of mistakes. Keep working on your credit. Work with a mortgage broker or loan offer and, when the time's right, a good Realtor. Be patient and you'll do fine.

Hope that helps.
0 votes Thank Flag Link Mon Jan 9, 2012
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
You made me laugh. There is a program in NC called Neighborhood Assistance Corporation of America--NACA.com. They will help you clean up your credit, guarantee a loan, cover your down payment, and more. Look them up online. You'll need to go to one of their info sessions held once a month on a Sat. in Charlotte and Raleigh. Even if the session is full, go early and you'll get in.

Good luck
Web Reference: http://crazyvivhomes.com
0 votes Thank Flag Link Mon Jan 9, 2012
Read and employ Mr. Oliva's credit tutorial.

Keep making on time payments to your open and active accounts and do not close any old accounts.
0 votes Thank Flag Link Mon Jan 9, 2012
0 votes Thank Flag Link Mon Jan 9, 2012
Of course, there is always a shot! Send me an email and I will connect you with the mortgage broker that I use. (JLesley@Century21Sweyer.com) The credit scores will need some help but they have an in-house credit repair specialist to help. Also the other part of the equation will come down to your Debt-to-Income Ratios. He can talk you through all of those details.

Chances are you will not be able to buy today but we can set you on the right path to buy within the next 6 months or so. Asking the questions now is perfect so that you can get into a home at the low prices and low rates available in today's market. I look forward to hearing from you. Thanks

Jeff Lesley
JLesley@Century21Sweyer.com
910-297-7071
0 votes Thank Flag Link Mon Jan 9, 2012
Aundreeuh,
Ignorance is only a sin if we choose to stay in it. At 18 you didn't know any better and did what many of us have done before you. At 26 you realize the path you've been on isn't helpful and it's time to change direction. Before you even think about buying a house you need to consider getting a financial plan in place. There are lots of books and seminars available, I recommend Dave Ramsey's Total Money Makeover. It's fairly comprehensive and written in a clear concise and readable fashion. Avoid any "get rich quick" or quick but expensive credit repair schemes. Most will only make you poorer and not much better informed.
Depending on your debt, income and determination you can fix this quickly and be ready not only for a home purchase, but ready for home ownership and all that is involved.
0 votes Thank Flag Link Mon Jan 9, 2012
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