Here's a little insight from a real estate Broker, who also passed the Mortgage Broker exam for the state of Texas, but only practices real estate.
The straightest answer you can get on whether and what you can buy anywhere, must be answered by a competent, experienced Loan Officer.
Sadly, there are not as many of those as I could hope for. This year I have had FOUR contracts crater because the Buyers used 'a friend in the business, someone who really believes in the work we are doing, has pristine credit and so is going with the very best dollar deal by shopping every LO around, my Dad using him for business'. Alcoholic Loan Officers, 'Internet Lenders whose integrity is utterly unknown, and people with a license who want to learn how on YOU are NOT saving you any money, they are setting you up for a train wreck.
What you DON'T need is free advice from people who don't make loans consistently, successfully, and frequently, in all markets, and with integrity. I have seen instances where the Big national banks are muffing loans that a good local bank could do in a slam dunk record time.
If you want the names of two different banks, and more specifically, competent Loan Officers, I will give you two, no strings attached. These are the only two my clients use...IF THEY WANT TO BE SURE TO GET THE DEAL CLOSED!
Scott McDonald, Broker
Scott McDonald Realty
I am an Realtor here in Denton and have sold lots of homes out in Providence and noticed your question. There is a new loan program now that I bet you would qualify for. It is strictly for rural areas and you can get in with zero down. If you need any help, I would love to help you out! Please feel free to visit my web site at:
I would be glad to get you in touch with my preferred lender and see what he can do for you! Also, I could set you up on a free auto e-mail program so anytime a new listing hits you will immediately be notified via e-mail!
Mary Kathryn Clay
I offer free one-on-one credit consultations. Think of it as a tune-up to get you ready for a purchase.
Now, many times.... My clients are able to buy right away, especially if the bad stuff is really old. But sometimes they need to do a little work on their credit and I can give you pointers there.
As for a co-signer.... This would not 'cure' bad credit. This would only help you if you didn't have credit or a job, or if you needed a little more income. The co-signer would be considered a non-occupying co-borrower. I wrote an article about this type of loan here. => http://activerain.com/blogsview/449665/FHA-Non-Occupying-Co
Let me know i you have any questions.
Simply put, call a mortgage broker. They will let you know exactly where you stand in finanacing a home.
I know several good ones in Denton. Providence has many good deals on homes and now is a opportune time to buy. Call me if you have any questions.
As James pointed out, it is a possibility that you could still qualify for a mortgage. It sounds like your income is good, so that's a plus. To qualify for a FHA/HUD loan you would have to have at least 3.5% of your sales price saved up. So for example you wanted to buy a home that costs $150,000, you would have to have $5250 minimum saved. The best way to find out what you qualify for is to talk to a lender. I work with several that are really great, and would be happy to point you in the right direction. Just let me know if I can be of any assistance. Thanks and GOOD LUCK!!
Once you know what your monthly payment will be and you feel comfortable with this then you can go shopping for a home.
If for some reason your credit scores are not high enough, or you need to increase them to get a better rate, or you need to save for a down payment, the bank will give you some goals to target. So it is possible that they'll say you are not ready to purchase now, but come back in 3 months or 6 months....do this this and this and then you'll be ready.