Home Buying in Dallas>Question Details

Trulia Dallas, Home Buyer in Dallas, TX

What options does a home buyer with a good income but bad credit have?

Asked by Trulia Dallas, Dallas, TX Tue Oct 30, 2012

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Several. We have a Bank that approves a 580 with 3.5% down and a reasonable interest rate. Yes it would be wise to increase your scores above 640 first, but that depends on how soon you need to move. I have investors that may potentially purchase a home for you, let you live there paying rent until the law firm we partner with improves your credit scores enough to buy.

I will be happy to help you and cover your options.. Go to our site http://www.thelendersnetwork.com fill out the home loan application and let's get to work!

The Lenders Network
1 vote Thank Flag Link Sun Apr 28, 2013
Shop around for a mortgage broker, they have access to many banks, private lenders and to many different programs. After they review your documents, they can be able to advice you and provide you with a pre-approval letter for the amount that you can afford.

Best of Luck,

Maria Cipollone

Century 21 tenace

1 vote Thank Flag Link Sat Nov 3, 2012
You have several options! Go to thelendersnetwork.com I picked out a few homes I wanted using their Realtor they game me. Have an attorney they got me with working on my credit, and got me an investor to purchase the property for me, I pay rent until I can purchase so far so good, the Law Firm they get got me with has been great and looks like The Lenders Network has a lender that can get us closed once we have a 580 mid score. we love our home!
0 votes Thank Flag Link Sun Apr 28, 2013
You are welcome to contact our office. Most credit repair is a waste of time since they all write bureau dispute letters and the success rate is minimal due to newer technology. The disputes alone will likely result in a mortgage credit denial due to underwriting guidelines. We have been dealing directly with creditors and collection agencies daily for many years. You can expect an honest assessment of what needs to be done and how to avoid some of the pitfalls most consumers make.
0 votes Thank Flag Link Wed Dec 5, 2012
It takes from a few months to a few years to repair credit, depending on what problems show up. For example, if you have a few collections, you might pay them off to clear them off the record (ask a specialist before touching items more than 2 years old).
If you have a history of late payments stretching back every month for 2 years, only time will cure that problem by paying on time for at least 14 months on every single account you have.

Errors do occur on credit reports, and you might have some paid off collections or errors that can be removed by proper documentation within a matter of days by paying a small fee. Without paying the rapid fee you'd have to wait about 6 weeks to clean them off.

If you can't clean up your report within your timeframe, then some banks (not the biggies) will lend you money if you have 50% down payment. A few will do it for less, but typically 25-35% down is required.

If your score is or can be cleaned up into the 580+ range, then you can qualify for FHA if you don't have some prohibited history items, like foreclosure within 5 years and so on. A loan officer can advise you.

If all of these approaches fail, look for owner-financed properties. They will ask for at least 8-10% down and charge an above-market interest rate, but at least you can buy. Once you own the property, work on clearing up the killer items on your credit report and re-finance later to a lower rate. Hopefully, the rates will be low when that time comes.
0 votes Thank Flag Link Thu Nov 8, 2012
Pay cash or find a paid off property where the owner will finance.
0 votes Thank Flag Link Fri Nov 2, 2012
I think the answer to your question depends on your circumstances and the amount of liquidity you have. I have assisted buyers who didn't think they would qualify and they ended up buying a $200,000 property. Their income was sufficient but they had enough other assets to make it work on a bridge loan basis ( such as 3 years). The rate was fixed at 5% or so. The time was given to improve credit scores and potentially earn more income by getting a higher paying job. Other collateral was used to protect the bank. I specialize in customized loans for buyers who would otherwise not qualify. These aren't hard money loans. They are loans by banks that want to invest in the local economy and establish relationships. Not everyone will get approved. But as I said, it depends on circumstances and the potential to use other assets to collateralize the loan ( in addition to the mortgage on the property).

Brent Rice, Top Recommended Broker
The Rice Group, Inc.
Website: http://www.ricegroupinc.com
0 votes Thank Flag Link Thu Nov 1, 2012
It is very important regardless of how you feel your credit/income situation is currently to get pre-qualified (initial look at credit) and then pre-approved (more in depth look) before you start looking at homes.
There are several lenders that will work with you if it is a few simple solutions to correct your credit or you may need to go through a credit repair company. If you do need a credit repair company it is good to go through one that works with the lender so the two can work together to get your credit where it needs to be.
Most importanly find a lender that you feel comfortable with and can trust will be honest with you and give you solutions. There are alot of lenders that will just deny you and keep going. There are also alot of lenders that will explain why they can't do the loan at this time but can give you solutions so you can work on the items yourself which would save money if you don't actually need credit repair.
There are several lenders that will work with buyers that have less than perfect credit. You do need to be careful though and ask lots of questions because sometimes you can get into a loan that may be designed for clients with poor credit and it may not really be a good idea, high interest rate or additional points or extra money down, which may actually be determental to your over all credit status in the long run. A Foreclosure is one of the most damaging things that can happen to your credit, sure you can eventually recover from it but better yet do everything in your power to be smart about the home purchase in the first place and don't buy more home than you can comfortably afford.
I would be happy to disucss this further with any one interested. I work for a lender that can get alot of loans closed that other lenders deny. We have in house underwritting and fund our own loans which also helps for those special situations that might need extra consideration all the while offering extremly competitive rates and several loan options with little of no money out of pocket. Be smart, this is a huge step, make sure you understand every aspect so you don't end up damaging your credit even further! Good Luck!
0 votes Thank Flag Link Wed Oct 31, 2012
I agree with all the previous answers, but there is another option. You can do a Seller Financing although, their rate may be a little high and they are not so easy to find. Meanwhile, you can get your credit scores up to refinance within a couple of years.

Liz Renfro
William Davis Realty
0 votes Thank Flag Link Wed Oct 31, 2012
There are two options. The first is a hard money lender with an excessive downpayment with a high rate of interest and possibly shorter terms. The second is to work on your credit. Most mortgages are funded by the federal government and have minimum score requirements around 640. Credit repair companies and letter writing to the bureaus are highly ineffective.
0 votes Thank Flag Link Wed Oct 31, 2012
You do have options. Start by getting a small loan may be with your bank or credit union and repay that loan in a timely matter. That will help you to increase your credit score. Shop around for a mortgage broker they have access to many banks, private lenders and many different programs.

Best of Luck,

Maria Cipollone

Century 21 Tenace
0 votes Thank Flag Link Wed Oct 31, 2012
There is hope for those who feel they have bad credit and sufficient income; however, in my opinion, people in that situation "must" first be willing to help themselves first!

No one can help anyone in this situation if they are willing to assist in fixing the credit issues. Furthermore, I work with some great lenders and I would certainly be willing to refer people in this situation to one of those lenders to see where they stand; from here, we can consult a "true and reputable" credit repair company to see how they may be able to assist.

Lastly, there are things a person can do on their own to get the ball rolling and one of those is to pay down their debt.
0 votes Thank Flag Link Wed Oct 31, 2012
You will need to go thru credit repair and get your score up.

I can refer you to my lender to help. You can email me at dixondfw@gmail.com for her contact.

JP and Associate
0 votes Thank Flag Link Tue Oct 30, 2012
I know that many lenders can do loans for buyers with low credit scores, but you'll have to put down a larger down payment. I think I recall a Wells Fargo agent who told me he could do an FHA loan with a 570 credit score with a 10% downpayment. And you're not going to get the cheapest interest rate, but the money is so cheap anyway, a higher rate is still not going to be higher than 5%.

Let me know and I'll forward his contact info to you.

Beau Beasley
Coldwell Banker
cell# 214 966-2100
0 votes Thank Flag Link Tue Oct 30, 2012
Contact any lender of your choice to get per approved usually for free. Then you will know for sure what the loan will be and terms of the loan.

Turtle Creek Realty
0 votes Thank Flag Link Tue Oct 30, 2012
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