Has anything changed since your post in Nov 2012? Has your credit improved? You still have the $7,500 or have you added to it? I'd like to learn more about your needs and see what could I help you with. Does 573 refer to your mid score or is it the highest of your 3 scores reported to the credit bureaus? Getting a loan on less than $50-$60,000 will be difficult because of "high cost" rules that lenders have to abide by. A Mortgage Banker or Loan Officer can tell you more about this. Call me if you're still thinking about the best move to make. My cell is 410-499-7279.
1st off - Great and congrats on your decision to buy a REO/Distressed Home
What seems reasonable means to you?
What is your goal? (Aka; buy and hold. buy fix and sell (-6-12 months), both within 3-5 years, Live there?)
Have identified a specific area?
It is important to be as specific as possible and you must be comfortable with the area,
Because you will be the one after the home is yours to be there and meet, anyone associated with all aspects of your property. (remodelers, tenants, inspectors, electricians to plumbers, and anything/anyone that would be a part of your support group,buyers,live there at a point in life, let others(friends family... etc..)
I am curious where are you in the process?
By when do you see yourself having the property's DEED of TRUST (YOU ARE THE OWNER) in your name?
If your score is 573 then you either have unpaid bills (collection accounts & etc) or your balances are too high on your credit cards. Use you $7,500 to pay off bills. Your low score not only affects you getting credit but a job and insurance (car and homeowners).
are you looking to live in this property or use it as a rental property? I have collegues that will assist or show you some steps to raise the credit score.
I would also suggest looking into a small community bank in the neighborhood you are purchasing.
Century 21 New Millennium