Home Buying in Decatur>Question Details

Jen, Home Buyer in Decatur, IL

I am a 41 year old woman. I've rented for 475.00 for 4 years consistently. Credit is an issue, but I can clearly afford a mortgage. Can anyone?

Asked by Jen, Decatur, IL Fri Dec 17, 2010

help me

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6
There are several very nice homes available that could be purchased as a Contract for Deed (CFD). The seller sets you up with a mortgage just like a bank. The difference is that you and the seller agree on a set date that you will be able to finance the purchase with a loan through a lender ie: 12 months, 2 years, 5 years, or whatever. This gives you ample time to get your credit in good shape.

For a list of homes that are able to be purchased with a CFD, please call me at 217-875-8393. Maybe I can help.
0 votes Thank Flag Link Thu Jan 17, 2013
Jen, I am in Taylorville and I can talk to you about this in person anytime. I just helped another person with the same problem. Lisa@taylorvillehomes.com
0 votes Thank Flag Link Thu Jan 6, 2011
There are three major considerations to determine credit worthiness. One is your credit score, and the things on your credit report behind the score. The second is verifiable income. The third is the assets you have. Typically mortgage lenders are going to look for a 28 percent loan service to income ratio. If you have $30,000 income per year from a verifiable source, you can afford roughly $8,400 in mortgage payments. (700/month) If your credit score is low, below 600, you may need a substantial down payment. FHA guidelines now require a minimum of 10 percent down if your FICO score is lower than 580. Lastly, your assets are considered. If you've got enough income, and enough money in the bank, over and above what your down payment and closing costs will be, to pay a few months of your mortgage payment then you may be able to qualify for a mortgage.

A word about verifiable income. If you work for cash, you're going to need to prove it somehow. 10-99 or W2 wages are the easiest to verify. Others aren't impossible to verify, just harder. What is on your report makes a difference as well. Defaults carry more weight than late payments. Also, utility bills, car payments and rent payments carry more weight than a doctors office.

What you really need to to to find out for sure is consult mortgage lenders. I know several that would be happy to help you find out if you can get a loan. If you need a referral, drop me a line.
0 votes Thank Flag Link Sat Dec 18, 2010
Jen,
I work all around central Illinois and can refer you to a creditable mortgage lender. I would trust what they sat and advise you on. Email me at farmandlakehouses@yahoo.com and I'll put you in touch with them. From there, maybe I (and my 20 years of exeperince) can help you further.
Jerry Grodesky broker
0 votes Thank Flag Link Sat Dec 18, 2010
In order to determine if you qualify for a mortgage, consider visiting with any qualified loan officer, local bank, or credit union--after reviewing your overall financials and credit, he/she can make a determination on qualification, the type of loan, how much, etc.
0 votes Thank Flag Link Fri Dec 17, 2010
Professional you need speak with mortgage broker who can interview you based on loan application submitted.

If your credit scores are low consider credit repair OR pay of debt which will increase your scores.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Fri Dec 17, 2010
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