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Home Buying in 19040 : Real Estate Advice

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Thu Apr 6, 2017
Kathy Burgreen answered:
You will not qualify. I'm a former realtor and still in touch with lenders. You need to learn the following:

1. Rent to Own means the homeowner will have you sign a contract that states you will give the owner a large upfront deposit to secure that you will buy the home when the terms of the lease is finished. You will also pay a monthly rent + a premium rent that is used towards the down payment of the home. If you fail to purchase the home when the lease is finished, the owner / seller keeps all of your money. There are no refunds. You will lose thousands of dollars. If you don't agree or sign the contract, you don't get to move in.
Since you are on Section 8, you don't have the savings or income to do Rent to Own.

2. Lenders do accept Section 8 to qualify for a mortgage loan as this is a source of income. BUT to be approved for a mortgage loan, lenders will verify your employment, income, savings / investments, credit score, credit history and tax returns. You also need cash savings for a down payment + cash to pay closing costs. Lenders also want to see additional cash reserves to pay for unexpected emergencies.

Since you are on Section 8, you do not have thousands of dollars in cash and your credit is poor. You need a job with good income and you need to improve your FICO credit score to 620 or higher. In the meantime, contact your housing authority and live in city housing projects.
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Fri May 4, 2012
Shellymaei answered:
Talk to your lender about including closing costs in the loan. As long as you qualify for the higher loan amount, FHA will allow you to roll the closing fees into the loan. Your monthly mortgage payments will be higher if you finance the closing costs by adding them to the loan amount as will the interest you pay over the life of the loan.
Click here for more information:
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