Firstimebuy, Home Buyer in Burbank, CA

Would a better option be land contract? We currently pay close to 2k a month renting. We probably will not qualify for a loan because of credit.

Asked by Firstimebuy, Burbank, CA Sun Aug 15, 2010

After school the economy was a little rough and my credit took a hit... Contrary to what people assume, I did not max out my student loans and live lavishly because I was hoping to avoid bad credit. Nonetheless, things are good, I've been steadily employed for some time, and I would like to purchase my first home. My wife has good credit but no income besides a corporation she recently started that really hasn't generated a profit yet.
Is there any way we could get something to call ours? We see many homes for 200k and are aiming for one of those hoping to qualify.

Any suggestions? Please help!

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If you have reasonable credit, and your wife has excellent credit, you might look into seller financing. Some sellers would rather have monthly income than a lump sum, and are willing to finance a sale with a moderate amount down if the buyer[s] have good credit and steady employment.

There can be risks with a land contract; google that term to read about some of them. In any event, expect to make a good-sized down payment and have a credit check run and provide proof of income. Good luck!
0 votes Thank Flag Link Sun Aug 15, 2010
Hello -

You need to know what your qualifying FICO score is. Many lenders accept 620 and a 640 is even better. You're either there or perhaps not far away. You also need (2) years of steady employment. Your debts (including a 1.50% factor for any deferred student loans) needs to be compared to your income to determine how much home you will qualify for. Until your wife has (2) years of tax returns for her corporation, there is no consideration for any potential income.

All questions that can be answered if you meet with a mortgage professional. If you don't qualify right now, they can advise you what your short comings are, what actions need to be taken to overcome them and how soon you will be eligible to buy plus how much you will qualify for.

All the Best,
0 votes Thank Flag Link Sun Aug 15, 2010
A land contract might be an option if you have already saved up a decent down payment; a lease-option would be an excellent alternative if otherwise.
0 votes Thank Flag Link Sun Aug 15, 2010
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