Home Buying in Racine>Question Details

Tno, Home Buyer in Racine, WI

WE HAVE A CREDIT SCORE OF 500 BUT WE PAID MOS TOF OUR DEBT OR ARE MAKING PAYMENTS CAN WE STILL GET A HOME

Asked by Tno, Racine, WI Wed Mar 18, 2009

LOAN IN RACINE WISCONSIN WITH LOW INTEREST RATE?

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6
Hi Tno - Looks like you have paid your dues! THis is a great question and many are having the same issue. What happens is the collection companies do not always update the credit file once they has been paid and unless you do something to correct the problem, it will continue to wreak havoc on your scores.

Please follow this link to my website and take a look at this short video on credit repair http://wisconsinloantips.com/7creditrepair.htm -

I can provide you with some help to get your scores up and on your way to homeownership with historically low interest rates.
1 vote Thank Flag Link Mon Mar 23, 2009
There are no normal financing programs out there that will make you a loan unless you had a huge downpayment and even then it would be very difficult. Your best bet is to find owner fincancing or do a lease purchase/option while you restore your credit. You may want to talk with a lender to help you work on your credit.
1 vote Thank Flag Link Thu Mar 19, 2009
Sounds like you are taking the right steps to get your credit rate increasing. There are a few places that may be able to get you qualified but you need to be careful. I think maybe taking a little more time to fix the lower credit score would be in your best interest for qualification and the better interest rates. Feel free to call if you need further help.

Thanks
Mike Zoerner
0 votes Thank Flag Link Wed Mar 25, 2009
Eek...I meant to type 680, not 780. My bad.
0 votes Thank Flag Link Tue Mar 24, 2009
Tno

The short answer is NO! You may be able to find a private lender but they ususaly require a large down payment. You may want to try a lease with the option to buy within a three year period. That should give you plenty of time to raise your credit scores if you are serious.

FHA requires a 580 not 780 credit score and many lenders are requiring 620.

Good Luck
0 votes Thank Flag Link Tue Mar 24, 2009
Woody has the best answer here, most of the information out there including two first time home buyer seminars I attended here in Wisconsin put the magic number at around 780, with 3.5% (FHA) or 5% (traditional) down.

I know how hard it is to build up your score after going through a tough time, it takes time and perseverance. Your local lender can help you, but there are NO quick fixes for bad credit and a lot of people and companies that will try to take advantage of you by saying otherwise. If you don't see any option to either buy directly from the owner or do a lease to buy purchase (which will cost a lot more in the long run, but would be an option), you might be better off renting for another year. But go to YOUR lender first (notice I didn't say A lender, go with the one you're familiar with), and get their take on it. It might not be as bad as you think. Good luck!
0 votes Thank Flag Link Tue Mar 24, 2009
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