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 .
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.
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. firstname.lastname@example.org 910.333.4690
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