Home Buying in Dry Ridge>Question Details

aroberts.2012, Renter in Crittenden, KY

if you have bad credit what is the best way to get a house? what are good steps to go threw?

Asked by aroberts.2012, Crittenden, KY Tue Mar 6, 2012

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It depends on how "bad" your credit is and what your exact situation is. I can go over in more detail with you personally on the phone to see what steps you should take.

Ken Perry Realty
1 vote Thank Flag Link Tue Mar 6, 2012
Good evening aroberts.2012,

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

*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
We thought we could never buy a house because our credit situation was very bad. We have been renting for almost a year and we went to American mortgage and they are helping us get our credit where it needs to be in order to buy a house. They also gave us a time frame and answered every question we had. You can go to any mortgage broker to do this and they will help you. Hope this helps! Good luck!
0 votes Thank Flag Link Sun Apr 28, 2013
No cost! I'm only interested in helping you if possible and possibly working with you in the future.
0 votes Thank Flag Link Tue Mar 6, 2012
Responding to Todd Schulz:

ok. my fiance and i have been looking and im very new to all of the home buying. we were looking for a house to rent also but they are all $850 and up. and we cant do that much. so im trying to get an idea of what my next step should be. does it cost anything for me to call you and have you hep me?
0 votes Thank Flag Link Tue Mar 6, 2012
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