Home Buying in Tucson>Question Details

Trulia Tucson, Other/Just Looking in Tucson, AZ

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

Asked by Trulia Tucson, Tucson, AZ Fri Apr 26, 2013

Help the community by answering this question:


I had a short sale last year and my Realtor recommend http://www.cfs-mortgage.com/flex for a home loan. I am very happy to be able to purchase again.
CFS Mortgage assists homeowners who have recently been through a foreclosure, short sale, have recently emerged from bankruptcy or with low credit score.
0 votes Thank Flag Link Sun May 19, 2013
Good afternoon!

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
Mobile: 516-582-9181
Office: 516-829-2900
Fax: 516-829-2944
PowerHouse Solutions, Inc.
1010 Northern Blvd. Suite 234
Great Neck NY 11021
Licensed Mortgage Banker – NYS Dept. of Financial Services

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes Thank Flag Link Mon Apr 29, 2013
How bad of credit? Please give me a call when you get a chance.

Warm Regards,
Josh Marks
0 votes Thank Flag Link Mon Apr 29, 2013
Happy to be that local lender so many of the respondents below refer to. It depends on what your credit issues are. It is true that there may be small, affordable things you can do to increase your credit score fairly quickly. While most loan programsa currently need a 640 credit score, we do have lenders who require less, most likely the interest rate will be a bit higher than if you had the 640 score. It is true that you could get a hard money or niche lender like cfs noted below, but again the rate will likely be higher than you generally see advertised. If you are on the loan with a family member then your credit is going to have to be acceptable too. The other suggestions below, seller carry or cash, etc. are other optiions for you. But, long haul, you are better off for all your financing needs if your credit score is higher, best to start working on that.

This information is not intended to be an indication of loan qualification, loan approval or commitment to lend. Other limitations may apply.
Minette Goldsmith-Fairway Independent Mortgage Corp. 5401 N. Oracle Road Tucson AZ 85704
520 975-3909
L.O. NMLS# 261487 AZ L.O. License #0912618, FIMC # 2289, AZ BK #0904162 Equal Housing Lender
0 votes Thank Flag Link Mon Apr 29, 2013
I recommend you contact a local lender and have them go over all of your information. They will give you all of the available options and discuss a plan to repair your credit to help you achieve your goal of home ownership. In the meantime you can try to find a seller who will carry or entertain a lease-purchase. Good luck!
0 votes Thank Flag Link Sun Apr 28, 2013
1. Seller May Carry Interim financing
2. Family co-sign for a mortgage
3. Lease option to purchase
4. Cash purchase
5. Rent while repairing credit an put a plan in place with your lender

Talk to a Realtor to review your personal situation and options

Jeffrey Masich, Realtor, GRI, MBA
Arizona homes and land for purchase or sale
0 votes Thank Flag Link Sat Apr 27, 2013
There are quite a few options out there with assistance programs. Also, if you go through credit counseling, which many lenders will provide free of charge, you can raise your score in no time!

Contact me for more details.

0 votes Thank Flag Link Sat Apr 27, 2013
Contact me and I will set you up with some of my preferred lenders and they can tell you where you are and what needs to be done. They are really the best source for this information.
0 votes Thank Flag Link Sat Apr 27, 2013
I had a client who wanted to buy a home in Arizona, but he had a foreclosure. After researching the web I found a loan program at http://www.cfsflex.com, they allow a mortgage after a foreclosure. There is no waiting period. Good to see lending options coming back.
0 votes Thank Flag Link Sat Apr 27, 2013
Options include, but not limited to, Co-borrower, and depending upon downpayment, lease purchase, lease purchase option, owner carry-back, or consult with a lender who knows local lending programs for the type of house for which you have interest.

Thank you for asking!

For a FREE comprehensive home buyer's guide click on http://goo.gl/232cm

Evan Harris, REALTOR
Coldwell Banker Residential Brokerage
Tucson/Oro Valley, AZ
0 votes Thank Flag Link Fri Apr 26, 2013
a lot of hope to buy a Home!
0 votes Thank Flag Link Fri Apr 26, 2013
I'm with Richard on this one...I even know a couple of lenders that will actually help you repair your credit in order to help you get a loan. :) You can also get a private money loan for now, then work on repairing your credit and refinance your private money loan into a lower interest rate loan. Feel free to contact me if you have any questions as well. 520-400-0904 ~ Christina Esala The Negotiators Realty
0 votes Thank Flag Link Fri Apr 26, 2013
Any potential buyer should talk with a lender, I recommend working with a local lender. It really should be the 1st step any potential home buyer makes, get pre-approved and see where you are at, what rates you qualify for, money down needed, and etc. There should be no cost nor obligation for this. Even if a person can't qualify for the home they want now, a good local lender will walk them thru what they can work on to increase their credit scores (FICO) so that home ownership can be a part of their future.

Once they get the loan situation figured out, talk to a local Realtor. Start a relationship with one to help you achieve your home ownership dream(s).


Spirit Messingham, PLLC
3rd Generation Full-Time Realtor®
Tierra Antigua Realty
Direct (520) 471-6900
Fax (866) 365-5208
0 votes Thank Flag Link Fri Apr 26, 2013
It all depends on what the bad credit is and how bad it is. The best way to find out is to have me send you to one of my preferred mortgage lenders and have them look at it and give you suggestions and options. Let me know and I will put you in contact with them.

Ric Mills
The Dan Adler Team
Keller Williams Southern Az
2506 E. Vistoso Commerce Loop #100
Oro Valley, Az 85755
Cell 520-548-8940
Fax 520-825-0001

The greatest compliment you can give is the referral of your friends and family. If you, or anyone you know, is thinking of buying or selling, please think of me and our TEAM.
0 votes Thank Flag Link Fri Apr 26, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer