There is a Credit Scoring Seminar in Rochester on November 9th, 2009 from 6-8pm. It is free of charge and will give you the knowledge you will need to get your credit started easily. Below is the link for it.
http://www.trulia.com/blog/wayne_laverdiere/2009/10/free_inf…

Your first step should be to contact a local mortgage broker, stay away from out of state or internet lenders. A good local mortgage broker can pre quailify you at no cost. This will tell you how much you can afford and what you have to do to be able to obtain a mortgage. No credit is better than bad credit. A lease option would be a good way to go but first you need to know how much of a mortgage you will be able to get to be able to find a home within your means. When negotiating out the lease purchase you will need to negotiate each aspect seperately, know the monthly rent, know how much they will credit you if you buy the home. At least they should credit you with 3% of the purchase price towards closing costs and 5% of the purchase price towards your required down payment. You then need to negotiate your sales price, make sure you are not overpaying. Good luck in yoru search

Jeano,

As a direct lender located right in Dover, NH I can tell you that we do have some solutions for buyers with no credit. Just a few months ago I did a 102% financing program on a new home purchase for a couple buying in Durham who had no credit scores. I did another one down in MA at the beginning of the year as well. It was overall not that difficult to get done - we closed both up in under a month. It is a government sponsored program, and the two big restrictions are you can't make TOO MUCH money (household income needs to be under $92,000 for Strafford County), and you need to buy in certain communities (everything around Dover and Rochester are eligible, but Dover and Rochester itself are not).

This may help you avoid getting into a lease-purchase agreement if you can afford to just buy it now even with no credit!

Let me know if you are interested in learning more. My office number is 603.749.5626 ext. 104, and my email is tfleury[at]envoymtg.com (replace the [at] with @).

Jenny,

FHA as low as 500? You mean 600? I have been told 620. Yes they can look into other forms of credit like paying bills but 620 was the magic number I thought.


Sean

The family needs verifiable and steady income. NO credit is better than late payement history. Access to down payment.

There is a HUD $8,000 tax credit for first time home buyer ... http://www.federalhousingtaxcredit.com/2009/index.html

FHA loan programs will consider credit scores as low as 500. FHA will also consider "non" traditional credit history such as cell phone payments, utilities payments, car payments, etc. FHA allows non-occupant borrower (aka co-signer) and they allow family gifts, grants, etc as down payments.

However, FHA loan programs requires an upfront insurance premium, which is financiable. And there is a monthly insurance premium.

I recommend the familty to contact an experienced local FHA lender ... http://www.hud.gov/ll/code/llslcrit.cfm

I also recommned the family to contact local non-profit neighborhood housing services groups for grants, state/city supplements, etc... http://www.nwrochester.org/

I hope the information helps.

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