I'm hoping someone can help! My husband and I are looking to purchase our first house but we have poor credit.

Asked by Crystal Kroon, Hillsboro, OR Thu Feb 12, 2009

We have quite a bit of poor credit due to some charge off's from many years ago. We are looking to get a VA loan since my husband was in the military so we can get the $0 down. I believe both our credit scores are just under 500 with our debt to income right about 45%. We are looking to purchase a single family home for around $150,000. Does anyone out there think that their is hope for us finally buying our first home? Please help! Thank's so much! This is our dream!

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Uncle Steves…, , Sacramento County, CA
Sat Feb 28, 2009
Given the senario you gave, I would say it is a long shot. FHA will accept some derog credit so talk to a FHA consultant.
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Voices Member, , Benton County, OR
Fri Feb 13, 2009
Crystal, You need to take steps to show you are working on your credit and to show those who determine qualification for various programs/loans that you are serious. Loaning money or selling always involves risk and those loaning like to minimalize those risks. (So would you).

I would like to suggest several things that may help inform you and begin the home buying process for you.
http://www.hud.gov/buying/localbuying.cfm .....I would suggest finding a local homebuying program. You will learn about programs (many which require taking a homebuying course) available in your area. You will make contacts. You will learn some credit repair techniques. You will be showing you are serious.

I would check this site.....http://www.govbenefits.gov/govbenefits_en.portal ...as a veteran to see if you may be eligible for other benefits..
This is the Gov. site for all loans. Check out the Housing loans (VA/FHA/HUD/USDA) to see what is currently available and which ones might work for you.....http://www.govloans.gov/govloans_en.portal?_nfpb=true&_p…
I would take advantage of the counseling services provided for free by the Gov. in order to show I was serious and to keep current with possible new assistance....http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm

These are the beginning steps I would take while I learned as much as possible about the area I planned to buy in. You have time, make good use of it and you will be successful in getting a home.

Please remember that as recent events have proven, Getting a home may be made easy for you, but when it comes time for keeping the home? Well help is scarce! Keeping the home is always the hardest part...........

Good luck, Dunes
0 votes
Dirk Knudsen…, Agent, Hillsboro, OR
Fri Feb 13, 2009
Web Reference:  http://www.theknudsens.com
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Dirk Knudsen…, Agent, Hillsboro, OR
Fri Feb 13, 2009
Crystal. I work with VA buyers every day. Get some help with the credit issues first and than call me and I ill explain to you how I can help you get some seller paid closing costs to make the closing much smoother for you.

I would love to help you. There are a few homes you can afford at that price but i can help you find them.

Check this link and it should take you to an updated map for Hillsboro with all of the homes from $0 to $180K for sale and this map will be updated every time you go there.

Crystal your dream of home ownership is a great one and I would love to help you make this happen.


Dirk Knudsen
Re/Max Hall of Fame
Re/Max Metro Gold
Web Reference:  http://www.theknudsens.com
0 votes
Luke Allison, , Asheville, NC
Thu Feb 12, 2009
If you would, please contact me sometime because I would like to review your file and see where you stand. Right now, most lenders are at at least a 580 credit score for any government loan - some are even at 620 and above.

I can do a VA loan down to a 550 credit score, but not 500. However, I would like to look at your derogatory items/collections and try and advise you of the best way to help boost your credit score at least so that credit score is no longer the issue preventing you from qualifying.

Feel free to contact me anytime.
Luke Allison
Flagstar Bank

Apply Online: flagstarloans.com/lallison
0 votes
Dallas Texas, Agent, Dallas, TN
Thu Feb 12, 2009
Contact a mortgage broker who can render a professional opinion after review of your credit scores, financail review, debt ratio. Based on your author statement it could require for you go thru credit repair then purchase a home. However older debt less impact it has on your credit scores.
Web Reference:  http://www.lynn911.com
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