Home Buying in Nashville>Question Details

Terry, Home Buyer in Nashville, TN

WE ARE TRYING TTO GET AN LOAN BUT, WE ARE HAVING A HARD TIME BECAUSE MY CREDIT IS LOW, AND MY GIRL FRIEND IS

Asked by Terry, Nashville, TN Mon Oct 27, 2008

TWO YEARS FRESH OUT OF CHAPTER 7!. SO WHATS SHOULD WE DO? WE HAVE GOOD JOBS AND CAN AFFORD A HOSE PAYMENT OF ABOUT 1200 AN MONTH. SO WHAT SHOULD WE DO.

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You're probably not ready for it yet, but THDA offers a good first-time buyer program that will give you a 4% grant towards down-payment and allows the seller to pay many of the closing costs on your behalf. Right now rates are 6.8% on the "Great Start" program. You can learn more about the program here:

http://www.thda.org/Programs/Mortgage/choices.html

If you're interested in talking this option over with a lender, let me know - I can put you in contact with some great lenders. I also have a nice Buyer's Package in PDF format that can help explain the buying process to you in a little more detail. Request it from the link below and best of luck!
1 vote Thank Flag Link Tue Oct 28, 2008
whoops! http://www.naca.com not org. sorry :)
0 votes Thank Flag Link Wed Oct 29, 2008
Terry,

Your situation is very similar to mine. Although my Chapter 7 was a little over 3 years ago, both my boyfriend and I have poor credit ratings. However, we both have good paying jobs, currently pay $1250 per month in rent and pay our monthly bills on time.

We are going through an organization called NACA to obtain a home mortgage. Though they are new to Nashville, they are an established and legitimate national organization dedicated to stopping predatory lending practices and offering people affordable mortgages. There are a couple of threads discussing Nashville's local NACA office on this website that will provide you with more information. But, basically, they offer fixed low interest rates, no down payment and no closing costs. They utilize a comprehensive character-based lending system instead of looking only at your credit scores.

This is not a quick process - it is rigorous. We have been meeting regularly with our NACA mortgage counselor since September 29th and our official anticipated qualification date is January 25, 2009. Obviously, each situation is unique, but it typically takes between 3 - 6 months to become qualified for a NACA mortgage.

If you want to know more, you should visit http://www.naca.org. Or, our mortgage counselor, Monica Wilson, has started a blog focusing on Nashville NACA at http://www.nacanashville.blogspot.com/

Good Luck to you!
0 votes Thank Flag Link Wed Oct 29, 2008
You may very well be able to get 100% financing AND qualify for the $7500 first time buyer credit if you close by the end of the year, which sounds entirely possible based on what you are describing.

The question on being approved for financing is not so much the lower credit scores, but what has created the lower credit scores, and have those issues been resolved. FHA guidelines allow for approval 2 years from the discharge date of bankruptcy. It is not uncommon to see lower credit scores outside of bankruptcy because some attorneys do a better job than others of making sure the items that were included in the bankruptcy no longer show as unpaid on the credit report after they have been discharged. Many times the issues seem worse than they actually are, so I'd love to take a look and see what the issues are and help you make a specific plan to get into your new home.

Would love to talk to you and look at your credit report. Credit report and consultation are free. You can get in touch with me at my website http://www.donnasgotmoney.com or call me in the office at 615-309-7945

Thank you and thanks to CeCe Wyant with Prudential Woodmont Realty for bringing this to my attention. It may be easier to move forward than you think.
0 votes Thank Flag Link Wed Oct 29, 2008
Terry, I think in short the question has been answered by others here. Definitely take the steps necessary because Nashville is still young so to speak when it comes to the city's growth. This is a good time to buy but of course you need financing. Find a loan specialist that will tell you exactly what you need to do in order to get the financing. I know many that can help you.

Brian Thomas Smith - Realtor
0 votes Thank Flag Link Tue Oct 28, 2008
Save, Save, Save. Work on building good credit history. Find a good lender that is "free" who will give you guidance and help you prioritize your credit "scars" and start to clean up. It doesn't take long to get bad credit, but it will take longer to get rid of it. Good luck.
0 votes Thank Flag Link Tue Oct 28, 2008
Hey Terry...if you have ANY money, you might look at sellers willing to lease/purchase to you. Lots of them are doing just that right now, and you can ask that a certain percentage of the lease go towards the down payment when you're able to get the loan. The other option, if you are first-time homebuyers, is to hook up with a lender who specializes in these type of loans, and will help you put together a plan to bring up your credit score in the next 6 months...it helps to have an "advocate" assist you in navigating through this!

I have a lender here in Nashville - Charlie Thompson - with Realty Mortgage (see link on my website below). Feel free to contact him for help. If you want to pursue the possibility of a lease/purchase, I can send you some listings that would fit yor budget.

Good Luck!
0 votes Thank Flag Link Tue Oct 28, 2008
Terry.....

You should regroup, work on your credit, pay your bills and save some money. Once your credit score is up and youhave some change in your jeans you will be in a better position to purchse.
0 votes Thank Flag Link Mon Oct 27, 2008
Pam Winterba…, Real Estate Pro in Danville, VA
MVP'08
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You're simply not ready to buy... you must clean up your credit and save a healthy down payment. Likely, you'll be looking at about 20% down to get a good loan.
0 votes Thank Flag Link Mon Oct 27, 2008
You need to get into credit repair immediately and see what can be done to raise your credit score. Your girl friend needs to reestablish credit and make sure that she has not late payments on anything. Bankruptcy has its difficulties but it can be overcome.
You also need to connect with a great lender that can check out your ability to purchase using FHA financing. Your credit score is not as important with FHA loans as it is with conventional financing.
0 votes Thank Flag Link Mon Oct 27, 2008
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