How to buy my first house with poor credit but money for the down and then money to pay mortgage.?

Asked by Woman4speed, 86305 Mon Aug 22, 2011

I am looking to buy a house at 85,000 total and we have 3500 down available but credit is shot what are our options.The house is in snowflake az. We have the money to pay a morgage but the morgage people I have spoke with say that are credit is too fico as of lastnight was 601.

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Jeffrey Masich’s answer
Jeffrey Masi…, Agent, Scottsdale, AZ
Mon Aug 22, 2011
Dear Woman:

Good question.

1. Ask your Realtor for "Seller May Carry" financing homes that are for sale
2. Ask a family member to "co-sign" for you
3. Ask a lender to find out how far away from qualifying you are and work on the areas they recommend
4. Buy a less expensive home
5. Save more cash
6. Ask your Realtor about "Rent to Own" homes or "Lease Option to Purchase" homes.

May I wish you the best.

Jeff Masich
HomeSmart Realty
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Jerry Cecil, Agent, Prescott, AZ
Mon Aug 22, 2011
Ten years ago, you would be in the dark. Now, your situation is very common. 601 is not too bad.
Keep working on your credit. Get with a good mortgage consultant, they can show you how to improve your credit so that you are more loan worthy. Also, I'm not sure of the situation, but see if the seller is willing to do an owner carry at least until your credit improves. The key is to find a good buyer's agent. They will be able to help you find the professionals out there that can help you with your credit and help you purchase a home.
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Ann Howell, Agent, Prescott, AZ
Mon Aug 22, 2011
Keep working with a mortgage broker you trust to improve your credit score. This may take a couple of months. You will also want a good buyer's agent on your side so that you can start looking at houses on the internet and doing some drive bys so that you know what you want when you are ready to start looking in earnest. Good Luck - you have taken the first step - and that can be the hardest one.
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Brad Bergami…, Agent, Prescott, AZ
Mon Aug 22, 2011
Start by saving more down payment and work on your credit.. You might not be a buyer right now.. there is nothing wrong with not buying a home.. Rent until you get the proper scores and credit.
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Linda De Fus…, Agent, Prescott, AZ
Mon Aug 22, 2011
Some lenders are better than others. A mortgage broker has many lenders, each with different underwriting guidelines and also have an option to correct inaccuracies in a process called rapid rescore. Plus there are govt propgrams that may work with you...USDA comes to mind for rural properties.Contact me if you wish to connect the dots! I have that lender for you
Linda De Fusco at 928.443.8900
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Brian Rocca, Agent, Gilbert, AZ
Mon Aug 22, 2011
The first thing you may want to consider is fixing the bad score. The way the market currently is, it is almost necessary to have at least decent credit to buy something. Take a look at this article for some assistance.…

Once you have a better score you will have options to purchase a home. Currently I believe the floor for getting a loan is around a 640 middle fico score.
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Scott Godzyk, Agent, Manchester, NH
Mon Aug 22, 2011
If you credit is really bad, that may not be enough of a down payment, in most cases bad credit needs 20% down, however the only way to tell is to meet with a local and trusted mortgage broker who can prequailify you at no cost and let you know what you may quailify for and what the costs will be.
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