Home Buying in Eugene>Question Details

Terri Kelley, Home Buyer in Dexter, OR

We are looking at buying a home for around $100K. We have $50K to put down. Our credit scores aren't good though. They are around 540 or so.

Asked by Terri Kelley, Dexter, OR Tue Jan 1, 2013

We have steady income (husband: $6K/mo. and me $2500/mo). We have two judgements on our credit for $2K for medical bills which we will pay off this month. (They were on hold for other reasons). Will we qualify for any decent loan for the balance with our current situation? We would only need a 15 year loan.

Help the community by answering this question:


Hi there. Yes it is true, you could qualify for a private money loan, though the rates you'd be offered will likely be over 12%. I'd be happy to refer you to a private money lender but honestly, I think the better option may be to consider getting coaching from me to help improve your credit rating. In many cases, a person can see significant improvement in their credit scores to qualify for FHA financing. FHA is a very forgiving lending program and now they've opened the door up to help some folks get financing 12mo after a BK, Foreclosure and even a shortsale. If I can be of help, let me know. CaseyL@summitfunding.net
0 votes Thank Flag Link Wed Sep 11, 2013
Hello! Congratulations on having $50K to put down! Wow! If I were you, I would start by getting together with a trusted lender (I am happy to provide reccommendations for you). By working with a lender, they can create a road map/timeline on what it will take to get your desired results. There is private lending, with higher down payments and higher interest rates than some conventional plans, but sometimes that is just the ticket in your current circumstance. A trusted lender could help you weight the pros and cons related to your circumstances and goals to help you decide if waiting a bit to increase your credit score would be a better route for you...or if private lending now, might be more desirable for you. Also, at times I run across someone who owns their home outright and wants to sell it. For a larger down payment than a conventional loan (which you certainly have) they are willing to carry the loan...which takes away some of the criteria to qualify with a lender. Please feel free to reach out to me, should you like to discuss this option further. If you have already made a purchase, I hope it went very smoothly for you. As a reminder, buyer's agents are "free" to you, an agent you would use is paid for by the seller...so please take advantage of us, we are here to serve you, offer representation and guidance. Thanks for your question! Rani
0 votes Thank Flag Link Fri Mar 8, 2013
NO you wouldn't. You need to work on your credit and build your scores back up.
0 votes Thank Flag Link Fri Mar 8, 2013
If You know everything that You looking for, I am willing to help you find and help you learn the forum of Pruchasing your new home.

God Bless You,

Patricia Cipriani

E: eminence.cipriani@gmail.com
C: (704)9606708
0 votes Thank Flag Link Tue Jan 1, 2013
I have clients in a similar boat as you are in, the best advice I can give you was already given to you below, seek a lender that you can work with. Private financing will work, but it will also give you a higher monthly payment. If you can build a relationship with a trustworthy lender they will put you on a path to purchase a home, it may take a while, but it will be a sure path. I'm a very cautious and conservative person, and I like to see people move with all deliberate speed and not rush into things too quickly. Once you have your finances in order, then select a good Realtor and go get the home you want, be patient, it's out there.

Best wishes,

0 votes Thank Flag Link Tue Jan 1, 2013
If you know that your credit score is below-acceptable for current (conventional) Lending, try looking into Private Financing. There are a handful Private Financing companies in the Eugene/Springfield area. Any Realtor or Loan Agent should have a recommendation. Off the cuff, you can check out Gallic Financial (gallicfinancial.com), or Precision Capitol (precisioncapital.net) for more information; both local Eugene Companies.

Most private financing will require 20 - 25% down payment, and will be around a 8 - 9% interest rate, but the it allows you to buy your home now. The monthly payment will probably be feasible and doesn't have the same closing costs involved as in Traditional Loans.

Ask around - it may be a viable short-term solution until your credit score has recovered for Conventional Financing Options (or Re-Fi's).

Good Luck!
0 votes Thank Flag Link Tue Jan 1, 2013
I agree with the previous answer. If you need a few names of trusted local lenders who would he able to help educate you with your choices, please feel free to contact me. After serving Lane County for several years, the experience I have in working with various lender in our area is vast. What an exciting time for you and your family!
0 votes Thank Flag Link Tue Jan 1, 2013
You should start by meeting with a local and trusted loan officer, they can prequailify you at no cost and let you know what your options are as they assist you with your credit. because you have a large donw payment there may be programs for you despite the credit
0 votes Thank Flag Link Tue Jan 1, 2013
Thank you so much! I appreciate your feedback.
Flag Sat Jan 5, 2013
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