Home Buying in 28016>Question Details

Dinkm, Renter in 28016

I have no credit, can I buy a home with 12000 dollars down payment

Asked by Dinkm, 28016 Fri Jan 21, 2011

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if you have absolutely no credit history with no credit score at all then FHA allows alternative credit. You can save a bit with a down payment larger than the FHA minimum 3.5% down payment.

In this case, don't go opening any charge accounts, finance a car or otherwise open new credit accounts until you have your loan otherwise you may risk having "shallow credit" or a low credit score.

If you have poor credit - that would take more time to fix, depending upon the nature of the problem. I would be happy to discuss this with you or see if we could get a pre-approval for you through our underwriting department.

Tom
0 votes Thank Flag Link Fri May 13, 2011
bff
Flag Mon Oct 28, 2013
Do you want to stay in the Bessemer City and Cherryville area to purchase?

If you are a US citizen and have no recent foreclosures or bankruptcys, there are many large banks and specialty lenders who can help you with what is called "building alternative credit". They look at rental payments, utilities, phone bills, car payments and other regular bills in your name and make sure that you have been paying these on time for the past 12 months. If you have, you can probably get a loan. Opening a couple of $200 or $300 secured credit cards will help you build credit. Have you done any of this yet?

A good rule of thumb is that you can afford and get approved for a home about three times your total household income. With $12,000, you have a downpayment for a home over $300,000. If you have not established credit, the greater your downpayment, the more favorable you will be to a lender.

Ryan Estes is a VP at Bank of America Home Loans and heads a team of mortgage professionals. You can reach his assistant, Leanna Wooten at (972)526-1651 or (877)544-2429 leanna.wooten@bankofamerica.com. Or, try Ryan at 919.367.4012 or 704.919.4715 Ryan.Estes@BankofAmerica.com They require a 620 minimum middle credit score. Bank of America offers job loss protection, interest rate locks and a wide variety of loans.

If you have a full time agent with a Masters degree in Planning with Finance and over two decades of experience, working for you, you will likely do better in negotiations. I'd be pleased to provide that service. ...and if you like this answer, please give it a "thumbs up".
0 votes Thank Flag Link Fri May 13, 2011
yes
Flag Tue Oct 29, 2013
brittany
Flag Mon Oct 28, 2013
Hello, after several years in the business I get questions similar to this very often. I can tell you that credit is key when purchasing a home in today's market. Even if you have your down payment and a good income, it all boils down to credit.

You should go to a mortgage broker at your local bank and ask how you can establish credit for yourself. If you cannot establish enough credit to meet financing requirements then you may want to get a co-signer with good credit and required income to do the mortgage and then you can provide the down payment and go on the deed.

I hope my answer helped you.
Web Reference: http://www.RhondaHolt.com
0 votes Thank Flag Link Fri Jan 21, 2011
brittany
Flag Tue Oct 29, 2013
hsl brittsny
Flag Mon Oct 28, 2013
There's a big difference between no credit and bad credit. If you have no credit record, it's easy to create one with just a gas credit card used periodically---and paid on time! Depending on the price range and your location, you should be able to find a home with a $12,000 down payment. You need to remember to set aside closing costs, too. Where are you looking?

April
Web Reference: http://www.sheltertoday.com
0 votes Thank Flag Link Fri Jan 21, 2011
ha brittany wask
Flag Mon Oct 28, 2013
I might be able to help. Give me a call. GLEN 336-650-5172
0 votes Thank Flag Link Fri Jan 21, 2011
You have already received a lot of advise for using a traditional lender. But you should also consider that it is possible to find home sellers who will carry a loan. Basically that means that the seller becomes the bank. You would still be buying the home and would be the owner but you would pay the mortgage to the seller rather than the bank.

Most sellers want cash so this will not work with everyone but there are sellers out there who understand that selling with terms can help sell the house.

Many MLS systems have owner financing as an option so you might want to ask you local agent if they can look up listing where sellers have offered this.
0 votes Thank Flag Link Fri Jan 21, 2011
I'd love for you to speak to my preferred lender, Diane, in Gaston County about your specific needs. She will be able to tell you if you are eligible for a loan based on alternate trade lines such as power bill, cell phone bill, etc. If your answer is 'not now,' she can walk you through grooming your credit in the next 60 - 90 days so you can still take advantage of the great deals out there. Please call me at 704.562.1030 to make contact with her. It's at no obligation to you, but she's done wonders for my clients, especially first-time home buyers.
Web Reference: http://thesafarigroup.com/
0 votes Thank Flag Link Fri Jan 21, 2011
wask
Flag Mon Oct 28, 2013
If you ZERO credit, you will want to look for a lender who is familiar with non traditional credit and FHA programs. They will still want to see three trade lines of credit, such as cell phone, car payment, insurance, utilities, etc. They will also need to verify income, employment, and one year of rent receipts.
You may still qualify for some first time buyer assistance programs with non traditional credit, and FHA.
0 votes Thank Flag Link Fri Jan 21, 2011
I am not aware of any lenders who will be able to offer a loan with no or poor credit, you will for the most part need to have atleast a 620 credit score and credit history. Check with your local lenders to get further guidance as to what you will need to do to establish acceptable credit.
0 votes Thank Flag Link Fri Jan 21, 2011
Hi Dinkim,

If you have no credit. Meaning you have no bad or good credit and are gainfully employed.

FHA will have a program for you. Try to use a local FHA expert who understands the underwriting requirements.

Try opening an account with a credit union they are very good at helping local borrowers.

Hope that helps you get in your own home.

Best of luck to you!
0 votes Thank Flag Link Fri Jan 21, 2011
wask
Flag Mon Oct 28, 2013
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