Home Buying in New Orleans>Question Details

Jasmine Small, Home Buyer in Chalmette, LA

My husband and I are young (early 20s). We are looking to by our first home. What are some good options for us? We have low credit scores and are

Asked by Jasmine Small, Chalmette, LA Fri Dec 21, 2012

both low income. We really are looking for some good advice. The hone we have in mind purchasing has great sentimental value to our family! Thanks for all your help Mr. and Mrs. Jones

Help the community by answering this question:

Answers

6
Jasmine,
I can only go by what you tell us, but low credit and low income make it very difficult to recommend you buy. The first thing you'll likely need is a down payment. With low credit scores, you may qualify for an FHA loan, which requires 3.5% of the purchase price as down payment. Your monthly payment however will be higher due to the large amount borrowed and the required Mortgage Insurance FHA and other low down payment programs have.
You may be best off focusing on saving money and improving your credit scores. If the house you are thinking about is gone, it wasn't meant to be. Getting your credit straightened out now, while you are young and learning how important it is to keep it that way will pay you huge dividends over your lives together.
1 vote Thank Flag Link Fri Dec 21, 2012
1) Take specific steps to get your credit scores higher..and make these changes in your life laying out a specific timeframe to achieve your goals such as paying down on certain loans, credit cards, etc.

2) Buying a home for sentimental reasons may not be the most sound way to make one of the largest financial investments of your life...be cautious.

3) Your best option is to consider where you want to be 3 yrs, 5 yrs and 10 yrs down the line. Speak to your accountant or the mortgage broker with whom you are considering getting a loan from.

4) Sit down with your husband with a blank sheet of paper and list all that you have of value..then another list of all that you owe. How long will it take to pay off what you owe? Discusss this with your other half.

5) How much cash do you make each month? Are you ready for a mortgage, insurance, taxes and maintenance on a property?

When thinking of buying take slow, steady calculated steps.
0 votes Thank Flag Link Tue Jan 1, 2013
Hi Rachel, Thanks for your response!! Is it ok if I call you today?
0 votes Thank Flag Link Sat Dec 22, 2012
I am sorry i just got your reply, call me sunday.
Flag Sat Dec 22, 2012
Your options are limited. You need first to consult a credit counselor for direction to government programs, such as the Soft Second program in Orleans Parish. A good mortgage broker/counselor could then work with you on financing. Also, over time you should, with the help of the credit counselor, work on your credit scores. They can be restored to acceptable levels.

Jim Prigmore
0 votes Thank Flag Link Sat Dec 22, 2012
Give me a call and I can put you in touch with a local lender that can let you know what your options are available.
Rachel Larsen
504-494-7347
0 votes Thank Flag Link Sat Dec 22, 2012
Hi!! Thank you so much for your repsonse!!! Well Im a waitress and my husband is a professional musician. My credit score is 593, I know that we have to meet a certain income qualifications (since we are married) we have at least 2% of down payment and with help could get to this 3.5. We just need help in the right direction.
0 votes Thank Flag Link Fri Dec 21, 2012
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer