Home Buying in Grand Rapids>Question Details

sarah.work, Renter in Grand Rapids, MI

First-time home buyers, low credit score with a $20000 down payment

Asked by sarah.work, Grand Rapids, MI Sun Feb 17, 2013

Fiance is in college and has only ever lived on campus, and I know my credit score is under 600. Only looking for a home around $50000. Completely fine with a home that needs cosmetic improvements, but we have no experience with any major renovations. What are our options?

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7
Brek Schutten’s answer
I would recommend that you work at repairing your credit score before anything else. You may be able to get a loan from some lenders based on the $20,000 down payment, but you would probably take hits from your credit score on your rate. If you need help finding a credit repair counselor to help you out, I know of a few good ones here in Grand Rapids so let me know.
Web Reference: http://www.BrekSchutten.com
0 votes Thank Flag Link Mon Feb 18, 2013
Put together your team to help - should include an experienced real estate agent and an experienced mortgage broker. At a $20K down payment on a $50K purchase you do have a healthy 0.6 loan to value ration so that work in your favor. Examine your credit report and correct any errors.
0 votes Thank Flag Link Mon Feb 18, 2013
There are various options that may be available to you. A good Realtor and mortgage broker are who you need in order to gain a more accurate anallysis of your resent situation. From there we can assess your options and you can decide what you want to do. Feel free to contact me for a free consultation to access your situation or to answer any qestions you have. Thanks
0 votes Thank Flag Link Mon Feb 18, 2013
It is crucial that you shop around for a mortgage broker that can explore all your financing options and advice you properly. Mortgage brokers have access to many banks, private lenders and different programs.

Best of Luck,

Maria Cipollone

Century 21 Tenace

http://www.Flahomespecialist.com
0 votes Thank Flag Link Mon Feb 18, 2013
You may have many options. Your best bet would be to contact a Realtor to thouroughly discuss your situation and talk about what area you would like to find a home in. What financing programs are available to you so often depends on where you would like to buy a home. Some programs are area specific. Some depend on income. Some don't depend heavily on a credit score. Some programs even help you with the cost of renovations if the home needs them. I would be happy to talk with you more about your specific situation and what your options may be.
0 votes Thank Flag Link Mon Feb 18, 2013
First meet with a local and trusted loan officer to get pre qualified. They can tell you if there are any mortgage programs available and if not, what you should do to be able to be quailified.
0 votes Thank Flag Link Mon Feb 18, 2013
A land contract may be an option for you if you have a minimum of $5000 down. Our office has several land contract options and investors willing to purchase a home for resale on a land contract. Contact us for more options. It is also a good idea to contact a lender to check that a mortgage is not an option. With the $3000 first-time home buyer credit, it is worth the time.
0 votes Thank Flag Link Mon Feb 18, 2013
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