getting into a home with bad credit

Asked by Sarahpoo18, Waterford, MI Sun Jul 22, 2012

My fiancee and I are trying to find a home to move into A.S.A.P to raise our soon-to-be born daughter and start a life together. We have been looking for rental properties because I have no credit and he has credit blemishes, we've been denied for an apartment and are not wanting to lose out on more money toward our home applying to more complexes to just be turned down and not worked with on anything. He has a very good job and is working on improving his credit score, but we need help now...

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Bill Cook’s answer
Bill Cook, Mortgage Broker Or Lender, Manhattan Beach, CA
Mon Jul 23, 2012
having a job, money saved up can get you some leverage even when you have bad credit but you'll need a portfolio lender and your down payment will need to be 25% or more. Don't expect the best interest rates, probably 2 to 3% higher than avg rates now.
For now, I'd try to improve your credit then and rent from a landlord/owner instead of an apt complex.
0 votes
Eric Michael, Agent, Northville, MI
Thu Jul 26, 2012

I would need more info. If you want to talk to me or my leasing specialist, call or email me.

Eric Michael

0 votes
Don Alcorn A…, , 48042
Mon Jul 23, 2012
What are your credit scores? How long has your fiance been working at his current job?
Don & Barbara
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Don Tepper, Agent, Burke, VA
Mon Jul 23, 2012
Rent from a private owner. Don't buy.

Come on. I'm not getting moralistic here, but let's look at the facts. You're unmarried, you're pregnant, you probably don't have a job (you refer to his "very good" job but nothing about you), you have no credit, he's got credit problems, and your combined record is so bad you can't even rent an apartment.

I give Don and Christopher a lot of credit for suggesting rent-by-owner. (Most agents wouldn't even suggest that--kudos to them.) But I doubt it'll work for you. The problem with lease-options or rent-to-owns are that within a few years you'll have to buy the property. The length of a lease-option is negotiable, but 2-4 years is the general range.

Do you think you and your boyfriend will be able to clean up your credit sufficiently in 2 years to buy a place? Yes, it's possible. But you need a plan. You need a strategy. Without that, you won't be in a position to buy in 2-3 years.

If you want to try a lease-option, then check with a good loan officer or mortgage broker to come up with a strategy to position yourself to buy in 2-3 years. Then see a lawyer, for two reasons: (1) to help review any lease-option documents to make sure you're sufficiently protected, and (2) to draw up an agreement between you and your boyfriend regarding the property ownership and disposal of same if something goes wrong with your relationship.

Hope that helps.
0 votes
Don Maclary, Agent, Virginia Beach, VA
Mon Jul 23, 2012
Go to craigslist for rent by owner
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Christopher…, Agent, Tarrytown, NY
Mon Jul 23, 2012
Hi, Unfortunately you will have to take it case by case. There are some landlords that will be more understanding then others. If you have a good explanation why your husbands credit has blemishes and can prove you have been on the mend for sometime it may help. try site like Craigslist that have for rent by owner apts, they tend to be less strict then others.

0 votes
Mike Stawizky, , 48382
Mon Jul 23, 2012
Hello Sarah,
Similar guidelines are used in leasing a home as leasing an apartment. The owner will want to see a copy of your credit report. If you don't have a good credit score, you'll probably be denied. If your being turned down from apartments, chances are you'll be denied for a lease also. You would have to repair the credit before qualifying. A credit counselor is a good source to rebuild. If you have any further questions feel few to contact me for resources. Have a Great Day!

Best Regards,
Mike Stawizky
3DX Real Estate
(248) 980-4406
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