From both personal and professional experience, it is very possible to work to repair and establish your credit to make vast improvements and put yourself in a position to buy a home in the span of a couple years.
I would suggest that you speak with a mortgage broker now and have them do a pre-qualification just to see where things currently stand for you. If you aren't quite ready yet, it is better to know this NOW and know what your next goal in the credit repair path is. Do you need to pay down one specific debt or transfer some balances to add a couple more points to your credit? Any qualified mortgage broker will be able to guide you in the right direction.
I'd be happy to chat with you further about this! Feel free to contact me via phone or email!
Your Castle Real Estate
There are mortgage lenders out there who can look at your whole credit situation and tell you specifically what it will take for you to qualify for a mortgage. I would suggest that you contact one of them and get started. It's best to know everything that you can to make the most educated decision. There's a great mortgage officer in our office who does just that. His name is David Thomas with Colorado Mortgage Alliance. His office is at 5440 Ward Rd. and number is 303-467-7676. Give him a call and let him know exactly what your situation is. He can help you through this. He has worked with a number of my buyers who didn't think they could buy and he made it happen. Let him know that I sent you and he'll take very good care. Also, let me know when you're ready to go and I'll send you my buyer's warranty and information packet so that you can know what the rest of the process will be like.
Good luck and call with any questions you may have.
FHA loans down to 550 credit scores. You need to have 10% down if your score is less than 580, 3.5% if over 580. You need to have no negative credit in the last year. Your bankruptcy needs to be discharged for two years.
If you meet this, your most of the way there. Give me a call and we can get you qualified and get you in a home.
I agree with Kathy. I am going to give the same advice I always give go to a qualified loan officer make a plan and stick with it there are many things they can help you with including programs in your area you may qualify for getting a plan together is going to bee the backbone of your future.
People often think they need 10-20% to put down in order to Purchase a home and that is not the case for most. There are a lot of Down Payment assistance company’s available and most of our Buyers only come out of Pocket $1700 to Close on a home. You may want to take a look at CHFA http://www.chfainfo.com/
then call a lender to discuss your situation. All lenders are not the same, one may tell you there's no way you will qualify when another can get you closed on a home in 30 days. Our Team has helped people get into homes with many different credit issues. Let me know if you need names of lenders who may be able to help you.
The Kinslow Team LLC
Coldwell Banker Residential Brokerage
I wrote my weekly real estate column about this very topic (with Bruce and another mortgage broker's help) last week. You can read it at http://www.JimSmithColumns.com .
First things first: talk to a lender to see where you are in terms of your ability to qualify for a mortgage. It's great that you're working to re-establish your credit. I would be happy to refer you to a couple of lenders. Keep in mind that you'll need to put at least 3.5% down (for an FHA mortgage), plus you'll have closing costs (which sometimes can be paid by the seller). You'll need to show stable income (possibly two years of tax returns) and limited debt. Then once you know if you qualify for a loan, and determine what you can afford, talk to a Realtor and begin the house hunting process. I'm based in Boulder County, but have worked all over the front range, including Arvada, Westminster, Broomfield, etc.. Let me know if I can help!