Home Buying in 48239>Question Details

Jene Jackson, Home Buyer in Detroit, MI

I recently filed bankruptcy but I'm looking a home preferably outside of Detroit. I understand that I do not qualify for a FHA or traditional mortgage

Asked by Jene Jackson, Detroit, MI Wed Jul 2, 2014

so I'm looking a land contract or lease to own. I have 5,000 for a down payment.

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Patrecia DeWalt’s answer
I have been working with clients such as yourself for the last 20 years. There are homes available on land contract that can be purchased with $5k down, I have about 15 clients who have closed on properties in the last 12 months with exactly that amount down. Of course you will not get into West Bloomfield, or Rochester Hills with $5k, but you can surly get into Taylor, Hazel Park, East Pointe etc. we have a room available right now with 4 bedrooms in Dearborn a Hgts, Taylor, and Keego Harbor for $5k down, no credit required.

Patrecia DeWalt, Broker, ABA, C-Crec
Vantage Real Estate LLC
0 votes Thank Flag Link Thu Jul 24, 2014
I agree with previous suggestions. You are able to finance a home after 24 months of bankruptcy completion. I would use the time to continue to save for when you are able to finance through the bank. Best of Luck!
0 votes Thank Flag Link Wed Jul 23, 2014
There are owners willing to sell on land contract, however they typically want more than $5K upfront. I would advise you to continue to save until you have at least $10K to put down. Some lenders will loan after one year from bankruptcy. This will give you time to save and rebuild your credit.

However, there are some lenders that say they will loan with scores as low as 535. But at much higher interest rates.

I hope this is helpful. If you have any additional questions feel free to contact me.

Rose Cook
Professional REALTOR
National Realty Centers, Inc.
248-838-9272 cell
248-724-1234 x319 office
0 votes Thank Flag Link Wed Jul 23, 2014
Rent-to-own is a horrible, horrible idea for the buyer. They homes are usually in horrible condition because the seller can't sell any other way. Renters pay a surcharge (above market rent) and you lose your money and deposit if you decide not to buy the house, or if you can't qualify for a loan. Seller hope that you will violate the terms of the agreement so that they can resell the house to the next sucker.

I strongly suggest that you continue to rent until you can qualify for a traditional mortgage; then go shopping for a home. Put the money that you would have spent on the surcharge into a savings account. Fix your credit. And before long you'll have a home of your own.

When you want to buy a home the best place to start is to hire an EXCLUSIVE Buyer Agent, not just a Buyer's Agent. EBAs only work with homebuyers and there is never a conflict of interest that will jeopardize your negotiating position. Contact http://www.naeba.org for a referral in your area.

I've written a best selling book called Buying a Home: Don't Let Them Make a Monkey Out of You. It'll teach you how to buy a home and get a mortgage without getting ripped off. Follow the link below.

Best of luck!

Alysse Musgrave
0 votes Thank Flag Link Wed Jul 2, 2014
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