Home Buying in 75206>Question Details

courtney.bla…, Home Buyer in Dallas, TX

I am looking to buy a house from a friend, I have bad credit but money for a large down payment. Is this possible?

Asked by courtney.blair, Dallas, TX Thu Sep 20, 2012

My boyfriend and I are looking to buy a house from a friend. We will be able to "save" since we wont be going through a realtor. However, my credit is in the low 500's and my boyfriend has no "active credit." I will be able to provide about a 30% down payment and could afford more if it becomes necessary. We will not buy the house for at least another 6 months. I need on advice on wht my next step should be. Thank you

Help the community by answering this question:


This would depend upon a number of factors, including your score and what is actually "on" your credit. Even if you are buying from a friend, you will still need to qualify for a home-loan if not paying cash.

FYI...the seller pays commission in the state of TX and doesn't cost you anything for buyer-representation. ESPECIALLY if you are buying "from a friend" you will want to make sure you have someone in your corner to protect your rights and negotiate for you.

I hope you have since purchased the home that you want and it was a good experience for you. If anyone else finds themselves in this situation PLEASE contact me! :) I would love to help guide you through the process (it won't cost you a dime ((for representation)). Regardless of whether you are buying from a friend or a stranger, this is the biggest investment most people make in a lifetime. Better safe than sorry.

-Amy S. Arey, Realtor
Halo Group Realty, LLC
0 votes Thank Flag Link Tue Nov 17, 2015
If your credit is preventing you from moving in the direction that you would like I would like to discuss your options for rectifying the situation without the typical dispute programs. Give me a call

0 votes Thank Flag Link Wed Oct 28, 2015
There are a few private money sources for Non-QM owner occupied loans these days. They require 25% or more and the rate is higher. But, for the right situation they make sense.
0 votes Thank Flag Link Thu Apr 23, 2015
0 votes Thank Flag Link Tue Apr 21, 2015
You need to obtain a loan from a lender. Depending upon you overall financial condition and your score now, you may or may not need to work with a credit repair person prior to obtaining a loan.

My best of luck to you!
0 votes Thank Flag Link Sun Apr 19, 2015
If you need help to raise your credit scores fast,
We specialize in raising FICO scores dramatically, in weeks, not months or years.

As a matter of fact with one of our most recent clients we raised his score from 552 up to 729 in 3 weeks.

Hope This Helps

Contact Us!

IZM Credit Services
800 N Rainbow Blvd
Las vegas, NV 89107
(702) 758 - 3799

0 votes Thank Flag Link Sun Apr 19, 2015
NACA will be happy to work with you. NACA does not use your credit score in any manner, though we do work with you on resolving any charge-offs or collections that have happened in the last two years, and your bill payment history must be on time for the past 12 months.

The NACA program offers no down payment, no closing costs, a fixed below market interest rate, and the ability to buy down the interest rate even further, potentially to near zero.

Just go to the NACA website at http://www.naca.com and sign up for a free Home Buyer's Workshop.
0 votes Thank Flag Link Sat Apr 18, 2015
With that type of score you would have to put down about 35%, this would be a non prime loan. I have not seen your credit but to obtain a better loan product you may need to pay off some debt and maybe apply for a couple of secured credit cards.

John Broussard
Account Executive
Newbridge Home Loans
713-777-9996 Ext 103
0 votes Thank Flag Link Thu Oct 2, 2014
My Lenders offer FHA loans that require a 580 score, Conventional require a 620.. I can refer you to an agent to help you find a home and a Lender or two that can get you pre approved.

Good Luck!
0 votes Thank Flag Link Sat Sep 28, 2013

You'll have some challenges with the current situation in obtaining a bank loan. I would need to know some details but I can say that your credit scores are not a concern to me, your behavior in the last 24 months is. If your boyfriend has no credit but has alternative lines such as electric, water, gas, cable, internet, etc. with a perfect pay history that would be sufficient. I would need to know about the history on your rental also.

It appears that you have saved some money which is great. With my program you won't have to use very much of it since I don't require a down paymnent or closing costs, you only have to fund your escrows. You may want to check out http://www.NACA.com and register to attend a workshop to get some details on us. Feel free to contact me with questions.

John Lyng
Mortgage Counselor-NMLS 280951
0 votes Thank Flag Link Sat Sep 22, 2012
Hi Courtney,

The main thing is you need to get in touch with a lender and you will need to get your score up to 550 in order to get a decent rate. The fact that you have 30% down is going to be very helpful. Lender will most likely ask you to 1) pay off some debts if you have high debt and income ratio 2) open new credit card and have a on going balance which will bring your score up

Another thing as a Realtor, please make sure your purchase price will appraise at your loan amount. Often time when you cut out professional in the transaction, you will save money cutting out the middle person. But buying a home is probably going to be your BIGGEST investment in your life. You have to make sure everything is done RIGHT and you dont save $1000 and lost $10k in the process.

I would also be more than happy to share my lender info with you if you are interested in her help getting your score up.

You can search homes in the 75206 zip code here http://www.findyourtexashome.com/lakewood/

Good luck!

JP and Associate
0 votes Thank Flag Link Thu Sep 20, 2012
Great advise :)
Flag Thu Sep 20, 2012
Yes this is possible. I sugguest trying a hard money lenders are lending companies offering a specialized type of real-estate backed loan. Hard money lenders provide short-term loans (also called a bridge loan) that provide funding based on the value of real estate that has been collateralized for the loan. Hard money lenders typically have much higher interest rates than banks because they fund deals that do not conform to bank standards.

Hard money lenders will offer a range of requirements on the loan-to-value percentage, type of real estate and minimum loan size for a hard money loan.

Money loans are more expensive than traditional loans because they are not based upon traditional credit guidelines which protect investors and banks from high default rates. As hard money lenders may not require the income verification that typical lenders require, they experience higher default rates (and, thus, charge a higher rate of interest). Individuals and companies may opt to take a hard money loan when they cannot obtain typical mortgage financing because they do not have acceptable credit or other documentation typically required by a conforming loan. Please screen your lenders first before giving them any information.
0 votes Thank Flag Link Thu Sep 20, 2012
Contact any lender of your choice to get pre-approved, which may be hard with the criteria you stated to us above, they will know where you stand on getting a loan or not. If the seller's are owner financing it for you, get a real estate attorney. You will need it.

Good luck.

0 votes Thank Flag Link Thu Sep 20, 2012
Go see a lender to see if they will loan you money. That's your next step.
0 votes Thank Flag Link Thu Sep 20, 2012
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