Home Buying in Bakersfield>Question Details

Teresa, Both Buyer and Seller in Bakersfield, CA

Is it possible to buy propertywith bad credit if you are paying all cash for the property?

Asked by Teresa, Bakersfield, CA Fri May 4, 2012

My husband and I are interested in purchasing homes in the Bakersfield, CA area that are currently in foreclosure. We can pay a maximum of $60,00, all cash for each property. My husband has better credit than I, and he is working to raise his credit score, which currently is 675. We would buy the property, do any necessary repairs/cosmetic work, and then either sell the property, or possibly retain it as a rental. We are a one-income family with no children at home. Both of our vehicles are paid for, and we have no credit card debt. Our only financial obligation is our mortgage payment which is $1,100 per month. Any advice/ideas?

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If you purchase a property with all cash, there will be no reason for anyone to run your credit.
Your husband's score is good enough for conventional or FHA financing, as long as your debt to income ratio fits the requirements.

If you would like more information on financing, I would be happy to put you in touch with a great lender who has been in the Bakersfield market for years and has an impeccable reputation.
Also, I can get you all the information you need on homes in the Kern County market.

Please feel free to call or email me directly with additonal questions or to get started looking at homes.

Thank you,
Valerie
0 votes Thank Flag Link Fri May 4, 2012
It is possible to buy a property with bad credit if you pay all cash as others have told you. However, if you have any judgments or liens against you or your husband (specifically whoever will be the purchaser of the property), it will be necessary for those to be resolved before escrow can close. In reading your question, it does not appear that this applies to you or your husband, however. If you have any further questions, please let me know.
0 votes Thank Flag Link Fri May 4, 2012
Cash is one the most preferred way of purchasing a home. When submitting offers cash rules having said all of that. Your credit is not necessary the only credit you need is showing proof of funds in your checking acct or whatever acct your using. 60,000 will still get you a home here in Bakersfield. So if your interested in moving forward please give me a call at 661/331-8058
0 votes Thank Flag Link Fri May 4, 2012
Purchasing homes as in more than one? You said they are in foreclosure meaning they are going to the public auction. You can place a bid on them but unless you are savvy buyers you could be disappointed. Many think auctioning homes at the courthouse is like storage wars on tv where you just start biding from $1 and up. Normally the bank that has the mortgage on the house has placed a starting bid and it is often about what is owed to them which is normally higher than it is worth and why the owner did not sell it themselves already. Also, you could be buying a house covered with liens, did you do a title search before you bid? You better. Your better bet is to let the bank take it, they will get around to listing it for sale as a bank owned REO property and then you can buy it.
0 votes Thank Flag Link Fri May 4, 2012
Thank you for your answer. We are more interested in purchasing REO property (one at a time) rather than bidding on property. Sorry, I should have clarified that..
Flag Fri May 4, 2012
His fico (credit score) is high enough to qualify. If yours is lower than 640 then he can do 80% convensional and you won't be on the loan. So instead of buying one property for 60,000 you can buy 3 properties for 100k and put 20k down on each of them. Call me if you want further help. I am a realtor and not a loan officer, but I am pretty certain his 675 would work in this scenerio. Anna 661-809-3388
0 votes Thank Flag Link Fri May 4, 2012
Hi Teresa,

If you are paying all cash for a property, then credit score doesn't matter. It only matters when you are financing.

Yours is the kind of transaction that agents love! Make sure you choose a good REALTOR® to help you. If you need more info on how to get started, feel free to contact me directly at info@HomeSalesSally.com or 661.375.7325

Hope this helps!
0 votes Thank Flag Link Fri May 4, 2012
Credit scores are significant as a determinant of a buyer's worthiness to participate in credit transactions; which by definition do not include cash purchases of anything - including homes.

Perhaps the easiest way for you to demonstrate this to yourself is by simply going to the next schedule courthouse auction in your area. Show up with enough cash and make the right bid and you can literally buy home being auctioned.
0 votes Thank Flag Link Fri May 4, 2012
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