Home Buying in Greenville>Question Details

Katrina Will…, Home Buyer in Greenville, NC

I am tired of rent. My credit score is low however; 554, and I don't have money for a down payment. Do I have a chance of being approved for a?

Asked by Katrina Willis-Taylor, Greenville, NC Mon Sep 24, 2012

loan? What will be the best approach for me? I currently pay $700 for rent and can afford the monthly expenses, but as mentioned, my credit is not good.

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Good afternoon, KWill:
Are you still in the market? If so, while minimum credit score requirements have risen at many lenders, we still can find financing at 600+ middle credit if you meet the criteria in the Trulia Blog "I have bad credit and no savings. Can I get a home or am I stuck renting?" http://goo.gl/5RG3w If you are under 600 middle FICO, here are ten tips for improving your credit: http://www.trulia.com/blog/dfisher/2011/08/ten_tips_for_repa… If you appreciate this answer, please give it a "thumbs up", or if this was the most helpful answer, please say thanks with a "best answer" click .
0 votes Thank Flag Link Thu Feb 21, 2013
I'm sorry - I hate to throw cold water on this, but............you have less than stellar credit..............you have no down payement............(wonder if you have any savings).......why do you think you're ready to take on the added responsibility of home ownership?
I think this is a premature idea for you.

Why is your credit "not good"?
You really should be working on that first.

Just because you think the mortgage might equal your rent...keep in mind that when you own.... there is so much more to factor in.....insurance.....taxes (which tend to go up often)..........higher utility bills than compared to an apartment....and - the real biggie - there is NO super to call in when the stove breaks....or the furnace dies......or the roof leaks..........a home, while lovely to own, can become a money pit.................would you have the necessary back up support (savings) to carry you when emergencies strike?

My advice..............make a plan to get those credit scores up.....and plan a budget to save for a down payment........and to have at least 3-6 months liquid assets to cover expenses in the bank (Suze Orman says you should have 6 months).....

I know the thought of buying now is tempting due to the low interest rates........but.........you're comitting to a large loan from the bank to make this happen.........make sure you're not on thin financial ice, and that you can actually afford everything that is involved in home ownership.

Best wishes......
1 vote Thank Flag Link Mon Sep 24, 2012
Some tips that I would give are as follows:

1) Get a free trial or pay the 14.95/mt for freecreditreport.com if you pay it gives you your score and you can monitor it ( I know because I've had this thing for about 3 years now). It really does help to see what's going on with your score.

2) Talk to a good lender about what to do (specific to your situation) to raise your score. I know the guy that I refer my clients to will get them a game plan of things they should do in order raise their score and qualify. I had a couple just this past weekend talk to him, they don't qualify now but hopefully after following his advice, in about 3 months they will.

3) Realize it doesn't happen overnight! It will require patience and it will be tough. Some days you will feel angry and want to give up. But if you keep going you will get through it and one day it will just be a memory. :)

If you would like the number to my guy just shoot me an email or call me. kringwold@yahoo.com 910.333.4690

0 votes Thank Flag Link Sat Sep 29, 2012
I can hear the urgency in your words. You see the 'opportunity' train pulling out of the station and you don't have a ticket. Now, you're in a pickle. You WILL be chasing prices upward.

Debbie Rose provided you excellent advise. Invest the time and effort to get your act together. In less that 18 months you will be able to buy.

Your fist temptation in 18 months will be to 'overbuy' and place yourself in a precarious financial situation. Listen to your real estate consultant, especially regarding the risk aversion aspects of the homes you will be considering. These are the only safety nets you will have!

Contact a local lender, and have a consultation with them. Most have a credit recovery program that will map out the strategy and keep you on track if you stay focused on your goal. When you are ready, be loyal to those who placed trust in you. Bad karma isn't what you want to be generating.

Don't know who to call? You can start with calling those local lenders who have a history of investing in the local economy through small business loans and home mortgages. These are "A" and "B" graded lenders. Bank of America, Wells Fargo, Chase, Citi and Never Ever Bank of Clearwater FL are all "F" graded lenders. Enter your zip code or city name and select the nearest bank.

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, Fl
0 votes Thank Flag Link Fri Sep 28, 2012
It's always better to own than rent. I have owned before and now I rent. I get tired of calling about repairs and having to wait forever to get things done. Spending over $8,000 year for rent I would rather it was benefiting me. If you maintain your property you shouldn't have a lot of trouble. Utilities are no different it's all in how you use them. There are many ways to go about getting your own. You can do rent-to-own, owner financing, find something cheap. Are you a veteran? Try FHA, have some kind of down payment. You can always work to build up your credit. Don't give up, where there is a will there is a way. I'm also looking into getting my own again. Why should I maintain others property like it was my own then walk away when I'm dissatisfied because things are not done in a timely fashion. Search out options for your self. Sandra
0 votes Thank Flag Link Fri Sep 28, 2012
Fix your credit and you would likely be able to qualify for a USDA RD loan that offers 100% financing for eligible properties and applicants!
0 votes Thank Flag Link Tue Sep 25, 2012
Call me or apply online and i will advise you. I am licensed to originate loans in NC and can help you get there. I would really need to see the accounts in your credit report in order to provide you with the accurate information that will get you there. Mortgages are a lot like snow flakes; there are no two alike. You can only get so much general information to help rebuild, but you need the one on one analysis, evaluation, and plan in order to get there. Call my cell phone. I work nights and weekends.
Flag Fri Sep 28, 2012
Andy, thank you for you response. I'm working on it, but what is the best approach? Do I pay off old debts i.e. medical bills; or do I apply for a credit card to build new credit? What will have the most optimal effect?
Flag Tue Sep 25, 2012
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