Home Buying in 55330>Question Details

Unspecified, Renter in

I am a single mother of 2 and need a home to buy. I have poor credit but would be a first time home buyer. I would like to know my options. Thanks!

Asked by Unspecified, Mon May 13, 2013

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Unfortunately, the fact that you are a first time homebuyer, does not negate the requirement that you still have to qualify for a mortgage just like everyone else does. Being a first time homebuyer merely meets one criteria among the myriad of requirements in qualifying.

The good news is that poor credit can be turned around. Speak with a trusted professional who is willing to help you with an action plan to rebuild, restore and create a healthy credit profile. It may take time, but in the long run it will be very advantageous.

Best Wishes to you.
1 vote Thank Flag Link Mon May 13, 2013
My team of lenders have different programs and I would like to chat with you about them.
Please contact me at 763-301-1212.
0 votes Thank Flag Link Sat Jan 18, 2014
Others have summed it up well, contact a mortgage professional.

my 2 cents, do not just start paying off any judgments and old accounts. This can actually hurt your credit. (I know it is asinine) but if you make a payment on an account that has not reported on your credit in a while then it will become a current trade line and be weighted as more important than something a few years or even months old.

If I see items like this in a persons credit profile I can connect them with a credit repair company that can help get these items taken care of in the best way for your overall credit score.
0 votes Thank Flag Link Fri May 17, 2013
Definitely start with meeting a mortgage broker. They will advise you on credit, trade lines and down payment figures.

In the mean time I inserted a free search of the MLS so you can window shop until you are ready :)

Thank you,


I recommend:

Bill Boldenow

Purchase Manager / Loan Officer

NMLS# 31974

Cascade Mortgage

2801 Hennepin Ave S

Minneapolis, MN 55408

O: 612-252-3347
0 votes Thank Flag Link Tue May 14, 2013
Good afternoon,

First steps:

Meet with a Local Mortgage Banker to get prequalified for mortgage financing. The Mortgage Banker will review all facets of your loan request to answer your questions with regards to the types of loans and maximum loan amounts you could qualify for. The Mortgage Banker can review your credit and give you a clear estimate of where you stand on your credit today.

If your credit is less then outstanding here are some steps to help fix your credit:

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE.

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran
NMLS #40140

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes Thank Flag Link Tue May 14, 2013
For first time home buyers there are loan programs that help with affordability, but credit is an important consideration for all borrowers. I would be happy to take a look at your credit and talk about where you are now and as a former housing counselor I can suggest a path to homeownership. If I can't help, I can point you to a HUD approved housing counseling agency for guidance.
0 votes Thank Flag Link Tue May 14, 2013
1) First option is what the majority of all buyers do: get bank financing. It is the cheapest with best rates and low down payment options. Potentially down payment assistance and all that good stuff. Regardless of how bad you may think you are speaking with a good loan officer is still your FIRST step.

best case they shock you, but realistically we are just trying to figure out a timeline-to-buy. My loan officer is one of the best when getting buyers qualified faster than anyone else I have worked with. You are not the only one who has needed a little help on the credit, and I take all my buyers like you to her. If it something major she also has a credit repair company on hand.

If you are under 12 month's to buy that is really not that bad. It may suck if you need a place to live, but it is what it is.

2) 2nd option if you are longer than 12 month's, or have a substantial down payment ($10,000 is a good benchmark) is seller financing options like rent to own or contract for deed financing. Essentially, instead of a bank the homeowner agrees to financing you. Then, once your credit is cleaned up you refinance into bank financing since it is cheaper.

The biggest negative is that most of the homes for sale don't offer these. You are also looking rural which presents some other challenges.

I can help with either options, but essentially it comes down to bank or homeowner financing. Either way you will want to speak with a loan officer right away. Get in contact with me over the next day and I will refer you to mine. Once that happens we can go more in length on what you should do.

As you might expect this is a lengthy conversation, but I am more than happy to help you out!

Realtor North/NE suburbs
0 votes Thank Flag Link Mon May 13, 2013
You need to get pre-approved by a lender first. This will help establish the price of the home you can afford and may be indicator of the type of financing you will need. With that information an agent can assist you with finding a home within your budget. By getting pre-approved you will be in a better postition to negotiate your home purchase with the seller because they will see you are a serious buyer.

All the best,
Gary Geer
Results Realty
0 votes Thank Flag Link Mon May 13, 2013
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