Home Buying in Porterville>Question Details

serafin3020, Home Buyer in Porterville, CA

Do I even qualify?!?

Asked by serafin3020, Porterville, CA Sun Feb 24, 2013

Hello, I'm a first time home buyer and I've been at my current job for 12 years. I do have an initial down payment of $3000 and I am looking to my first home around the price of $125,000. A year ago I purchased a used car and I still owe approximately $18,000. Now to the negative, my credit score is sub 550 and lacking luster. Is there a bank under the skies willing to take this risk?

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I recommend that all buyers contact a professional lending institution to fully understand where they are at in qualifying for procuring their new property. There are wonderful programs out there for first time buyers and a professional can assist you in the right criteria for your needs. All the best. . . .
0 votes Thank Flag Link Tue Apr 23, 2013
Unless you are a Veteran (which would allow you to use VA financing) then your credit score is too low at this point to qualify with that low of a down payment. For FHA financing & 500-579 credit scores you would need a 10% down payment. With 580+ credit scores then a 3.5% down payment is all that FHA financing requires. You can get gifts/loans from family members to help you with the required down payment.

You may want to look into a program called NACA, which is 100% financing to purchase a property at incredibly low interest rates (currently 3.375% APR) and has no closing costs. The program takes awhile to complete (as in around 6 months on average), but everyone I've spoken to that has gone through it says it was well worth it. There is no credit score requirement, but you do have to have made all of your payments on time for the past 12 months. The basic eligibility requirements for the program can be found at https://www.naca.com/nacaweb/purchase/eligibilityIntro.aspx and for more detailed information you can go to their homepage at https://www.naca.com/nacaWeb/index_main.aspx (lower left corner, under "homebuyer" - a very useful document is the "NACA Qualification" link). While you are improving your credit scores I'd encourage you to look into qualifying for that program.

Shane Milne | Lending in all 50 states | NMLS #81195
shane@thebesthomeloans | 949-273-4161 direct
0 votes Thank Flag Link Sun Feb 24, 2013
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