Home Buying in 49509>Question Details

Candice, Other/Just Looking in Grand Rapids, MI

My husband and I would like to purchase our first home. My credit score is low and I am the only one working. What should I do? Do I have options?

Asked by Candice, Grand Rapids, MI Wed Oct 5, 2011

We are looking at lower priced homes under $70,000. We are more or less needing assistance on how to go about getting our first home and see if we can even get financed or if we should look at land contract or rent to own properties.

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There are most likely options out there for you. You should talk to a lender about whether or not you will be able to get approved for a mortgage first, because looking for a land contract or rent-to-own situation drastically reduces your options. If you would like some help searching or the names of a few lenders that might be able to help you, feel free to contact me. I'll try to help however I can. Thanks!
0 votes Thank Flag Link Thu Oct 6, 2011
Candice, a great place to start is with a first time home buyer class. I personally took one before buying my first home 12 years ago. I learned a lot about what to do and what not to do. The Inner City Christian Federation (ICCF) does first time home buyer classes at least monthly which I have been teaching for over 10 years. The ICCF is a non profit housing counselor and does a wonderful job. You can reach the ICCF at 616-336-9333 or visit them on the web at http://www.ICCF.org.
Web Reference: http://www.HomeRunGR.info
0 votes Thank Flag Link Thu Oct 6, 2011
Candice, Purchasing a home is a long term decision... there are lots of variables, benefits and exposuresand or consequences if you do not make the right decision. There is a home for rent right now on 1321 Carlton NE in Gr, which also has possible land contract terms...... check that out,,, and good luck
0 votes Thank Flag Link Wed Oct 5, 2011
Candice,
Owning a home is great, but please make certain your ready for all that it entails and you make a good choice. With one income, you have nothing to protect your family with if you were unable to work. With low credit scores you'll have a harder time getting a lender on board and they will charge a higher rate and fees then people with good credit will get.
My first suggestion for others in similar situations is to work on your credit. Depending on why it is low there may be some steps you can take to improve it. Get on a budget, save some money, pay bills on time and early, pay down revolving balances to 1/3 or below the limit. Dispute items on your credit report that are inaccurate.
Rent to own in a declining market generally favors the seller, not the buyer. If you pursue this option, make certain the agent you use is very knowledgeable and experienced in doing these transactions. You don't "own" the home until you've met the terms and obtained financing from a lender. The owner rents to you with a promise to sell and a premium on your rent. You may be better off paying low rent and saving the money for down payment on your own.
I don't mean to shoot down your dream, but hope to allow you to realize it without experiencing a nightmare. Best of luck however you proceed.
0 votes Thank Flag Link Wed Oct 5, 2011
Candice....congratulations on beginning your home search! I know you have a lot of questions going through your mind. A good first step would be to talk with a lender regarding mortgage programs available to you. There are programs which have various requirements as to income and money down, but all consider your credit score, income levels, and debt to income ratios. Speak with a lender in MI regarding the programs available there.

I wish you the best!
0 votes Thank Flag Link Wed Oct 5, 2011
There are a number of options, but first I would contact a mortgage broker, an agressive one who has a number of options available. Find out your true credit score and what you actually can afford. Next, how much do you have available for a down payment. Most land contracts will require a substantial one probably starting about 5K.
0 votes Thank Flag Link Wed Oct 5, 2011
There are some options. Id be happy to help you and walk you through the proper steps. Can you call me at 231-670-6724 or email me at anthony.lambers@cbgreatlakes.com you can call me anytime and I can explain what we need to do
0 votes Thank Flag Link Wed Oct 5, 2011
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