Home Buying in 19460>Question Details

melissacbd, Home Buyer in 19460

First time home buyer in Chester County, PA. NEEDS HELP!

Asked by melissacbd, 19460 Tue Oct 8, 2013

I am currently renting and my lease will be up in October. We want to buy our first home. We do not have a lot of money for down payment. All 3 of my credit scores are in the 550 range, and I am not sure what my husband is but it is no higher then mine, if not less. We have no idea where to start, who to meet with or what to do. We have looked into the USDA home loan and the FHA loan as we currently have no money for a down payment, but know that we will have some in the months leading up to our lease ending. So my question is where do we start? Do we go to a bank first? A mortgage company? A real estate agent? Is this even possible? I am looking for a little guidance, and hopefully someone who is kind and considerate and willing to help us reach their dream of home ownership. Any advice or insight would be greatly appreciated.

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Melissa,Hello,My name is jim clark from beiler-campbell in Avondale.Im currently working with soom clients just like yourself!Give me a call and we can talk in private to get you started!610-761-4415 THANKS!
0 votes Thank Flag Link Tue Oct 8, 2013
Hi Melissa, I hate to be the bringer of bad news, but with a credit score of 550, I do not believe buying is going to be an option for you at this time. I have heard of companies going as low as 580, but not 550. In addition, if your husband's score is lower, they would not be able to use his income as a qualifier.

USDA is on hold due to the government shutdown and FHA requires 3.5% down. On a $150,000 house, that would be $5,250.

I think the best thing for you would be to rent for at least 1 additional year and try to save money. I know it's hard, but there is a theory of paying yourself first (yourself vs bills). What that means is putting a few hundred a month aside in savings for your down payment. Open a new savings account if you have to so you are not tempted to touch it. Don't forget you will have closing costs too. Homeownership is not an inexpensive proposition.

You don't want your credit score to suffer though. I suggest reaching out to a credit repair person such as Jammie Lyani, Owner of Miss Fix-It Credit Connection, 267.243.6031, jammie25@comcast.net, http://www.facebook.com/CleanMyCredit

Hope this helps!

Eric Axelson
0 votes Thank Flag Link Tue Oct 8, 2013
Melissa, you definitely need to find somebody to help repair your credit, as others stated. Many lenders can help you by giving you steps you can take to get your score up. If they cannot, there are many local agencies, normally, that you can go to for help. We have one here (Columbus) called Consumer Credit Counseling. Any big city will have an organization like this. Find one.

Good luck!
0 votes Thank Flag Link Tue Oct 8, 2013
Melissa,

Even a program that gives a 100% mortgage still requires money for taxes and other closing costs such as transfer tax, title insurance appraisal fees etc, these can add up to about 3-4% of the purchase price

Your credit scores seem as if they are too low right now to obtain a mortgage, mnost mortgage products are 600-620 minimum scores, so you need to work at getting them up and this may take some time. So your first stop will be to work with a credit counsellor on how to raise your credit scores, sometimes a mortgage provider will help you with this. But it looks as if you will need to continue renting for a while and work towards buying something next year or even the year after depending on how quickly your credit improves. The higher your score the better quality mortgage you can get with lower rates.

Sorry not to be able to give you any better news. But given time you can achieve the goal of owning a home.
0 votes Thank Flag Link Tue Oct 8, 2013
Nick has it right. Maybe also try to pay your rent on time all year for the next year so that you can use that credit "plus".
Flag Tue Dec 17, 2013
Melissa,

I have a lender that I work with that has an in house credit repair department. One of the employees used to work for one of the 3 major credit reporting agencies and knows what it takes to get your scores up to a number where you can qualify to purchase.

If you are interested in this just let me know as I don't want to put his phone number out there.

Andrew Himes
0 votes Thank Flag Link Tue Oct 8, 2013
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