Home Buying in Urbana>Question Details

Lynched07, Home Buyer in Urbana, IL

What options, besides renting, are out there for people with low credit scores to purchase a home. I would be a first time home buyer.

Asked by Lynched07, Urbana, IL Wed Oct 24, 2012

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This question was asked from this property: http://www.trulia.com/property/3095748571-2712-E-Main-St-Urb…

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3
Peter Kedzior’s answer
If your credit score is at least 620 and you have a reliable source of income, you should qualify for a real estate purchase. Depending on your income/debt ratio, you may only qualify for up to $100,000 which in some cases could cost you less per month then renting. Even after you add the real estate tax and home owners association payments.
0 votes Thank Flag Link Fri Oct 26, 2012
Probably the only option at this time would be to do a rent to own plan for a few years, to build some down payment money and repair your credit while your doing that. With weak credit you need more money down and a reputable landlord would also give you a credit history which would help with getting a loan somewhere down the road.
0 votes Thank Flag Link Wed Oct 24, 2012
First of all, have you spoken with a lender and had them run your credit or did you just check your credit on your own? Sometimes a person may think their credit score is too low to purchase a home and in fact it is higher than they think and they are eligible for a loan. There are several programs available for 1st time homebuyers that lenders can suggest for you once they see which program you qualify for. There is no cost for you just to talk with someone. The other alternative would be to find a seller who is willing to sell on contract and depending on the terms will determine if this is the best choice for you to make. Good luck.
0 votes Thank Flag Link Wed Oct 24, 2012
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