This really is a question best answered by you connecting with a mortgage person. It is possible that you may be able to purchase a home or put a plan in place to get you ready.
I would be glad to provide a referral to a quality mortgage person that can help you out.
Arizona Homes for Sale by a Guy from Iowa
Carlos J. Ramirez, PC, ABR, CNE
Associate Broker/Realtor, HomeSmart -
First you should have a good mortgage lender go through all your information to see if it is possible to get a loan. Keep in mind that sometimes one lender may not be able to help while another one can. So if the first one can't you may want to check with another one. Possibly a mortgage broker who can check with various places and not just a mortgage banker.
There are other ways of purchasing such as seller financing, lease purchase and even hard money lenders but they will normally cost more than standard financing. One hard money lender I know will want 30% down with 12% interest. 10% down if it is a property that they own. Some hard money lenders only want to loan for a short period of time and have rates as high as 18%. So it is always best to try to get normal financing first.
It may just be a situation on your credit that can be explained, or maybe you will have to clean up your credit. If you have to wait 6-12 months to purchase because you have to take care of some things, it would still be better waiting than to have paid a higher amount for a seller financed home when you could have purchased lower with some of the great deals that are out there right now. And even if the market starts to improve during the time you have to wait, most people think it will be a slow recovery and your buying situation should still be good.
Brenda & Ron Cunningham
West USA Realty
602-980-3133 / 602-499-0694
Recognized in the July 2010 Phoenix Business Journal as one of the Top 50 Realtors in the Valley
Many of today's buyers that have serious credit issues that prevent them from moving forwand and purchaisng property are seeking "seller financing" or "lease options" as an alternative to traditional means of financing.
Yes, check with some lenders. If you need some one that works with difficult credit situations, just ask.
A VA, or FHA, Fannie Mae, or USDA loan have low down payment requirements.
There are also possibilities for seller may carry or 'Hard Money' loans. Both may have higher interest and a healthy down payment requirements.
The next step? Asking a lender and sharing the details of your personal situation.
May I wish you the very best.
Arizona Homes and Land
First things first, You need to know what your credit score is. I can't tell you how many times I met someone who said they had poor credit and their score was above 700. My idea of poor and yours are two different things. Go to http://www.freecreditreport.com and pull your credit. Go to http://www.myfico.com and get your score. Determine what is making your credit poor. Then fix it.
You can also go straight to a mortgage lender and have them run your credit. This holds the benefit that they will be able to tell you what is on your credit report that is going to hinder your loan approval.
The minimum score for FHA is 640 & VA is 620 but keep in mind all banks have different standards. The other option as mentioned before is owner financing. I really don't see that as an option because most of them will also want decent credit.
The last option is a lease to own. They do exist but are rare. Basically a homeowner will let you live in the home and make lease payments that a portion of will be applied to a down payment. You will do this until you can qualify for a loan.
Best of luck,
Remax / Lakeland