Home Buying in Allen>Question Details

russellf150, Home Buyer in Allen, TX

Looking for= for sale by owner $5000 dn.low credit score,work in Plan,need home close as possible,within 45 days

Asked by russellf150, Allen, TX Mon Jan 21, 2013

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Brent Rice’s answer
Russell, this question appears to have gained some additional attention since we have spoken on the phone several weeks ago. Yet, the answer remains the same as when we discussed this subject.

In essence, with "only" $5,000 a seller will have to use your money to pay commissions ($6,000 on a your $100,000 target purchase price) and then come out of pocket an additional sum for other closing costs including the title policy. The chances of finding a seller that is motivated to a point to pay for someone to buy his house and then take the risk that you may default if $5,000 is all the money you have, are quite slim.....to none.

Even if you find a FSBO owned by someone willing to finance 95% of the price, your better strategy is to continue to lease, save money, increase credit score and contact one of us when the time comes to re-visit the idea.

As I mentioned on the phone, you may always feel free to contact me anytime.

Brent Rice, Trulia Top Recommended Broker (Pro & VIP)
The Rice Group, Inc.
Website: http://www.ricegroupinc.com
1 vote Thank Flag Link Mon Feb 11, 2013
Give me a call I can help you find a home if your still looking
0 votes Thank Flag Link Wed Apr 3, 2013
Good morning Russell,

I'd like to focus one three words from your question as the basis for my advice: "low credit score."

First: get a referral to an experienced Local Mortgage Banker. Get prequalified in person by the Mortgage Banker. IF you are then told your credit score is insufficient to qualify for a mortgage loan then you need to put your financial "house in order" before you take on the responsibility of owning a home.

We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you have a low credit score and you have a dream of buying a home, here's some simple advice for you.

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website. http://www.consumer-action.org/

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE.http://www.consumer.ftc.gov/articles/0058-credit-repair-how-…

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran
NMLS #40140

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0 votes Thank Flag Link Tue Feb 12, 2013
Thanks for the great response,
0 votes Thank Flag Link Tue Feb 12, 2013
There are also 3 other homes in Plano, but because the prices are higher, they would probably require more down payment.
0 votes Thank Flag Link Mon Feb 11, 2013
could You contact me via email with a list
Flag Tue Feb 12, 2013
There is a single-family home in Allen listed in MLS that the seller is willing to work with the buyer on financing. It is the only one in MLS.

Call or email if you need more information.
Web Reference: http://www.SumnerRealty.com
0 votes Thank Flag Link Mon Feb 11, 2013
Options are limited but seller financing IS out there. There are restrictions in place that you will want to be weary of to remain lawful. Your down-payment will depend upon the sales price of the home. Feel free to contact me to learn more.

-Amy S. Arey, Realtor
Halo Group Realty, LLC
0 votes Thank Flag Link Mon Feb 11, 2013

My suggestion is to talk to a lender first and go from there. Let me know if you need to be connected to a lender. I have one who is also a mortgage advisor.

Take care,

Susie Kay, Realtor®
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240

Servicing your real estate need is my priority!
0 votes Thank Flag Link Wed Jan 23, 2013
There are some alternatives that have become available. FSBOs may not be willing to consider owner finance and there are laws that regulate owner finance transactions that if not followed will subject all parties to a 25,000 per person fine. Seek an attorney to help with this or there are some specific groups that assist for more details feel free to visit my profile and contact me that way for more details.
Web Reference: http://dmdrealtydfw.com
0 votes Thank Flag Link Mon Jan 21, 2013

When you say FSBO, are you thinking that they will also seller finance due to your "low" credit score? Your first phone call might need to be to a lender. If you know that you cannot be approved, then there may be some other sellers (that have Realtors) that might seller finance (not just FSBOs).

Regardless, you should have a Realtor to represent you. It doesn't cost you anything, and it sounds like it might say you a lot of time, which you do not have anyway.

There is a lot to discuss given your apparent situation. You need assistance.

Brent Rice, Trulia Top Recommended Broker (Pro & VIP)
The Rice Group, Inc.
Website: http://www.ricegroupinc.com
0 votes Thank Flag Link Mon Jan 21, 2013
Give me a call so that I can assist you further.
0 votes Thank Flag Link Mon Jan 21, 2013
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