Home Buying in 29577>Question Details

Brian Brown, Home Buyer in Myrtle Beach, SC

What if I have poor credit but want to quit renting?

Asked by Brian Brown, Myrtle Beach, SC Wed Feb 20, 2013

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Todd Spiehler’s answer
Brian, As mentioned getting pre-qualified for a loan is the only way you will be able find out what is available for you. If you do qualify, there are some great options available through Fannie Mae Home Path properties, which require lower down payments, assistance with closing costs and no mortgage insurance. Good luck.
0 votes Thank Flag Link Thu Feb 21, 2013
If can save enough money for a decent down payment, owner financing could be an option for you. This will allow for you to have time to get your credit back down the road but start your home ownership now.
0 votes Thank Flag Link Tue May 27, 2014
You just need someone that can help you get it cleaned up without charging you. If interested I can put you in contact with that such person.
0 votes Thank Flag Link Thu Mar 6, 2014
If you have items on your credit that are not yours or simply inaccurate, contracting a credit repair company will be beneficial to you and may put you up to the score you need. If there are items that are negative that are yours and accurate, they will not get removed in most cases unless that vendor fails to comply within the timeframe as required by law. If you need a list of companies that are great at cleaning up inaccurate reporting on credit reports, contact me for their information.
0 votes Thank Flag Link Thu Mar 6, 2014
Try getting in touch with a local lender to see what their opinion on your credit and situation is. You may be better off than you think. This will also be a necessary step in the process anyway so start it now. You could also contact a local Realtor that can suggest a lender based on your credit situation.
0 votes Thank Flag Link Wed Feb 26, 2014
Having "poor credit" is all relative. Homebuyers with "poor credit" receive mortgages every day. You just need to know how to proceed. Banks and mortgage companies are not monolithic in their methods of operation. If a loan cannot be obtained with one company, that doesn't mean your dreams are over. I recommend interviewing several banks in your quest. Your Realtor can put you in touch with a diverse range of lending institutions. Bryan 843-318-0115
0 votes Thank Flag Link Wed Feb 26, 2014

Although I am not an expert in credit repair I would give a thumbs up to Trevor's answer. Another option is to contact an mortgage professional that also does the underwriting.

This means that they can more likely approve lower credit score loans. Also there are many great mortgage brokers who will also guide you in repairing your credit.

One loan officer that I work with has worked with one couple for 3 years to get them ready to buy a home. Now that is a true professional.

Contact me with any questions. 843-580-3718
0 votes Thank Flag Link Thu May 9, 2013
Good morning Brian,

We see many credit reports with low credit scores (anything less than 620), and often many scores in the 500's. This is BAD credit. If you are one of the folks affected by this terrible economy, you have a low credit score and you have a dream of buying a home, here's some simple advice for you.

It is unlikely you could be approved for mortgage financing with that credit score at this time.

Beware of any mortgage professionals promising you an approval with such a low score. Wait on buying a home. I recommend you take the time to resolve your credit issues.

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE.

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran
NMLS #40140

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes Thank Flag Link Wed May 8, 2013
Brian, I have to say that some of the options that are outlined below are great. Also if you credit is low seek out a Mortgage broker who will help you get back on track. There are workshops in the area that may help you as well. A great mortgage broker will also be able to help you work on your credit repair.

Good Luck. Let me know if I can help further.
0 votes Thank Flag Link Wed May 8, 2013
It sounds like you know where you are at with your credit. You might want to consider doing a Owner Finance or Lease Purchase. The basic idea behind owner financing is that the seller of a property offers to hold the mortgage for that property for sale. The buyer of a property then provides a cash down payment to the seller. At that point, the buyer begins making monthly mortgage payments to the seller of the property. In many cases, the seller financing agreement has a balloon payment due at some date in the future. This allows the buyer to have plenty of time to build up his credit and then refinance the loan
0 votes Thank Flag Link Thu Feb 21, 2013

The best idea is to get pre-qualified and see what and if you qualify. Go to http://www.myrtlebeachlender.com and it is quick and easy.
Let me know if you need more help.

Carson Hardy- Owner/Agent
SC Real Estate Network
0 votes Thank Flag Link Wed Feb 20, 2013
Brian, the best step to take is to speak with a representative from your bank and complete the prequalification process to see if you qualify for a home loan and how much you qualify for. If you do not, the representative will provide you with the best advice to improve your status. Call me if you have more questions. 843-877-3115. Thank you
0 votes Thank Flag Link Wed Feb 20, 2013
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