Home Buying in Troy Hill>Question Details

Gabriel, Home Buyer in Pittsburgh, PA

I am a 1st time Home Buyer

Asked by Gabriel, Pittsburgh, PA Mon Aug 18, 2008

I have looked into the housing market (Pittsburgh, PA) where I live and found houses that I would like to have our familly to grow in (my wife and I and our 10 yrs old daughter and 1 due very soon). The problem that I have run into is that I can't get a loan. With the expecting of another child we have out grown the living space that we have (live with mother in-law). We have had to claim bankruptcy (frowns) 8 years ago. Our credit is still in poor condition. We do have jobs and have had them for over 5 years with the public schools as para-professionals (teacher's aides). We have applied for 1st time home buyers loans (lending tree) and with looking at our credit score we were denied. I have been reading here that some advice would be to go through your loacal credit unions. Well my banking/savings account is with a credit union (which I wont name) which I applied for on Aug 8 and only heard back from them today which we were denied. any advice would be helpful?

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stefan’s answer
Hi Gabriel. What a frustrating situation, and you are definately not alone. Did you know that HUD offers 50% off their homes to teachers in some cases? This would likely decrease the loan amount that you are seeking, and would increase your ability to qualify. Pittsburg Realtors...if you are familiar with the HUD program I have referenced, please reach out to Gabriel and his family. I with you the best!
1 vote Thank Flag Link Mon Aug 18, 2008
FHA is a little more forgiving as far as credit goes for first time home buyers. For some people it can be an option that works when a conventional loan won't work out at all. Fannie May and Freddie Mac foundations can be helpful for finding extra things which may help, but this depends on your personal situation.
Web Reference: http://www.hud.gov
0 votes Thank Flag Link Wed Aug 20, 2008
Well I have looked into some of the things that people have suggested. Unfornately these "Revitalization Area's" that are suggested are very high crime (shootings almost weekly) and looking at the "HUD" housing that was also suggested are houses that are in shambles. For example looking at 4 different houses in the Pittsburgh Area (which being teachers aides we have to live in city limits) have major problems (cracked foundations, disconnected plumbing, etc.. which equal out to major repairs) this is something that I have found to be very looked down on. I appreicate your advice and like I said, I want as a father a safe place for my childeren to live and grow up in. I have found myself looking at this problem that my familly has as something that will not be resolved.
0 votes Thank Flag Link Tue Aug 19, 2008
Have you reviewed your credit report to make sure there are no errors? The bankruptcy should clear after 7 years, though sometimes it needs a little help (you can appeal, assuming that's what is keeping your score low). The credit union should have some suggestions. (Sometimes they also have home buying programs where they match your savings to help defray closing costs.)

The HUD program may be an option, assuming teacher's aides qualify as teachers. To use that program, you have to live in a "Revitalization Area" (e.g., Wilkinsburg, Duquesne, McKees Rocks, North Braddock, Homestead). You sign two notes (each for half the property value), but only have to pay one of them (unless you move out within three years). http://hud.uai.com/hudpls/ViewMap.aspx?stfips=42# has a detailed map.

Good luck!
0 votes Thank Flag Link Mon Aug 18, 2008
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