Rent vs Buy in Champaign>Question Details

C, Other/Just Looking in Champaign, IL

is there a program for people with bad credit to get financing to buy a home in urbana or champaign, il? I'm

Asked by C, Champaign, IL Wed Feb 4, 2009

currently paying $675 a month for rent and feel stupid because I know I could buy at this rate.

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5
C, Perhaps you might consider this suggestion...Take the next 6 months to a year to work on repairing your credit. I suggest this because during that time you would also be able to inform yourself about the current programs available and see what developes as far as new programs the Gov. will be creating to stimulate the market.
You may find yourself in a lot better position to buy, be more informed about your desired market area, and have new programs available to use.
Here is the Gov. site for all gov. loans. Check out the current housing loans, determine if you might be eligible for any and keep an ear open for new ones.http://www.govloans.gov/govloans_en.portal?_nfpb=true&_p…

Check out the Hud site...http://www.hud.gov/offices/hsg/sfh/reo/reobuyfaq.cfm
FHA site...http://portal.hud.gov/portal/page?_pageid=73,1&_dad=port…

Mortgage rates and trends....http://mortgage-x.com/general/rate_trend.asp
http://www.fhfa.gov/ ...home price index and a lot of info
Gov. site for mortgage info, calculators, and a ton of othe info..http://www.ofheo.gov/PublicInformation.aspx?Nav=136

A large financial committment like home purchase deserves a little effort in making sure you can afford the purchase and get the best deal possible. If you decide to take time to see how things develope you may also want to keep checking in on Trulia to view questions similar to yours or different opinions of the market, purchasing processes, foreclosure/REO info ect.. or you can participate.
Whatever you decide I wish you good luck, Dunes
1 vote Thank Flag Link Thu Feb 5, 2009
Dana- You are correct except that most lenders will not take a credit score of less that 620 except under certain circumstances. Only a few go lower than that. So while the guidlines say no score, lenders are tightning there own standards. I try to get my buyers to get concessions and have a realtor work with them for that so that they can pay closing costs and only have to come to the table with the 3.5% downpayment.
0 votes Thank Flag Link Thu Feb 5, 2009
Do you hasve a down payment? FHA does not take credit scores into account,but you will need a 3.5% down payment(this can be a gift from a family member)and sufficient funds to cover closing cost,insurance & taxes.
0 votes Thank Flag Link Thu Feb 5, 2009
How bad is your credit. I may have a few lenders that could help. Let me know
0 votes Thank Flag Link Thu Feb 5, 2009
The first thing I would do is talk to a local lender to see what programs they know of. The low credit scores will definitely be an obstacle but the local lenders would be the best resource for the loan programs
0 votes Thank Flag Link Wed Feb 4, 2009
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