Property Q&A in Milwaukee>Question Details

Troy Clifton, Home Buyer in Milwaukee, WI

I am a first time home buyer with poor credit,stable income and the ability to do extensive "sweat equity" , how can I get this property?

Asked by Troy Clifton, Milwaukee, WI Tue Mar 1, 2011

I am willing to do whatever it takes to compensate for the lack of a "good" credit score. I work in engineering and I am totally capable of "putting in the work " necessary to make this deal work.

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A loan? Find somebody to lend you the cash. This is a bank owned property and probably very run down. Even people with great credit likely won't get a loan on one of these... until it's fixed up. It will take too long to repair your credit to get this property. I'm being realistic to save you some heartaches. But, do credit repair, you'll be glad you did!
Good luck!
1 vote Thank Flag Link Tue Mar 1, 2011
Hello Troy,
Here are two options.
One is to find a seller wanting to sell their home and have no mortgage on it. They may consider owner financing for a period of time if they do not need to get their money out of the property.
Two, would be to consult with a credit score consultant who maybe able to help raise your score to a level acceptable to FHA which allows a minimum down payment of 3.5%.
0 votes Thank Flag Link Wed Mar 2, 2011
Call me, I can connect you with a lender that has options for you.

Mary Edwards
262-250-8156 - office - emails
0 votes Thank Flag Link Wed Mar 2, 2011
Just want to add to the $1 house program info given below - the houses (there were 8) have bids due tomorrow. But the City has said they'd like to do more if this set is successful, so it pays to keep an eye out! You still need a preapproval though (plus other requirements), so it's a good idea to check with lenders early on in the process, as suggested below.
0 votes Thank Flag Link Tue Mar 1, 2011
Hi Troy,
The best place to start might be by making an appointment with an experienced lender. The lender will run a credit check to find out exactly where you are with your credit score. That will give them an idea what loan programs you would qualify for. An appointment will take no more than one hour.
With a stable source of income, you may qualify under various special government programs. There are also local banks with hybrid portfolio loans. Portfolio means they keep the loan "in-house" and don't sell it on the secondary market, which would require that the loan meet certain guidelines. As one local bank describes their portfolio loans... "Our money, our rules".
Another source for you might be Seller financing. There are some Sellers who are willing to take a chance on a Buyer - even with questionable credit. After all, if the Buyer defaults, the Seller gets the house back.
Perhaps you have a family member who will co-sign or underwrite a loan for you, or at least gift the downpayment to you.
There are government programs (City of Milwaukee for instance) where a hopeful homeowner, who promises to live in the house for a certain length of time, can buy a house for as little as $1. Yes, $1.
Last suggestions: get into a credit repair program and start saving up a downpayment, even if it is a very small amount each week.
Feel Free to contact me directly for more suggestions.
0 votes Thank Flag Link Tue Mar 1, 2011
PS - If you are also selling a home, you won't be successful writing an offer with a contingency for sale of your home. Foreclosures will not wait (nor will most Sellers these days)!
0 votes Thank Flag Link Tue Mar 1, 2011
For any property, you may be able to find financing with a program such as the American Dream with US Bank. They have some great programs for people who plan to own and live in their property.
However, your ability to do 'sweat equity' for anything but cosmetic issues will be limited and the repair amount is somewhat limited. But they can be more forgiving about the credit score.

If there are major issues, you may be able to do an FHA 203(k) loan, check with the bank or credit union you currently do business with to see if they write those (or email me if you want some contacts) but these will require contractors, you can't do it yourself.

There's a simpler FHA product that sometimes can allow people to do some work themselves if they have 'the expertise necessary to complete the work'. But it's not for structural items, it's mainly minor repairs and cosmetics.
0 votes Thank Flag Link Tue Mar 1, 2011
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