Financing in Gainesville>Question Details

Jenny, Home Buyer in Gainesville, FL

I am a first time home buyer looking for the right lender. I make 25k per year, and have no debt. I do not

Asked by Jenny, Gainesville, FL Fri Mar 14, 2008

have a credit score, but one judgment shows up on my credit report (I am currently in the process of disputing the judgment, but don't want to have to wait for that process to complete before applying for a mortgage loan. What are my options?

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Dear Jenny, I have good news and bad news. Per the state of the mortgage industry there is only one program 'that I know of' for a person without a credit score. That would be FHA. You would have to show that you have been making on time and in full bill payments for the last 12 months (i.e. cell phone, gas, electric, auto insurance, cable....) you will need to furnish copies of the bills and cancelled checks. That is the good news. The bad news is per the terms of a FHA all judgements will need to be satisfied before closing, so the judgement you are disputing will have to either be paid or dismissed before you can close on the house purchase.
1 vote Thank Flag Link Sun Mar 16, 2008
Go to a couple LOCAL lenders and talk to them. They will be able to tell you if it is possible to get qualified for a loan now - be sure to be totally honest about your situation. If not now, they can still tell you what you will need to do to get qualified and give you a quote so you know what your monthly charges will be and what you can afford when you are ready to buy. This is SO important for your planning!

It is true that things are tightening up in the mortgage world, so you may have to wait.. but it doesn't hurt to ask. btw - you can probably do all this over the phone, so you don't even need to take off from work.
0 votes Thank Flag Link Thu Mar 20, 2008
Thank you, Corey. That's exactly the information I was looking for.
0 votes Thank Flag Link Sun Mar 16, 2008
"There are lots of programs available to assist first time homebuyers. What I would recommend to you is to contact at least three different lending institutions and allow them to work with you to help position you to qualify for a mortgage. Lending institutions have different programs available to assist. A realtor in your area can probably give you some specific names of loan officers who are very good at working with government financial programs that assist homebuyers. All loan officers are not the same, either--some are very good at working with first-timers, and others are not. If you are not happy with the assistance you get from one, contact another!!
Web Reference: http://www.MykeTriebold.com
0 votes Thank Flag Link Sat Mar 15, 2008
It's all about credit when it comes to loans. I'd recommend getting a secured credit card with a major bank and first getting a credit score - especially to off-set any negative items like the judgement you mention.
0 votes Thank Flag Link Fri Mar 14, 2008
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