Financing in 78745>Question Details

Meagan, Other/Just Looking in 92543

My husband and I are wanting to get our first home. However the credit is in the 500's is it possible for us to get financed for a home that is

Asked by Meagan, 92543 Tue May 1, 2012

50,000 Monthly gross income is 2400

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There are owner-financed properties and motivated sellers out there if you are willing roll up your sleeves and get to work on structuring an offer that will work, I have done many transactions where my buyer either had bad credit, no credit, little or no money for a downpayment, there are many creative ways to accomplish this if:
1. You are motivated to do it and
2. You have an agent that has some knowledge and experience in doing these types of deals.

I just had an offer accepted yesterday on a property where the seller offered to finance, but my buyer did not have 10% to put down, and his "credit" report consisted of chargeoffs and collections. He had not 1 positive thing on his credit. however, I have known this young man's family for 30 years and his Mom is like, my best client ever, but both she, and her whole family, have gone from rich to hard times in the last 10 years. I advised my buyer to compensate for his negative credit and his lack of adequate funds by offering to pay OVER list price, and I also agreed to take my fee in payments from the seller, as my buyer makes the payments. The seller was truly touched by the fact that we understood his position, and our shortcomings, so he agreed to take our offer. I would rather have some payments coming in myself, than nothing at all, and I am happy to have moved my buyer forward to be able to get his first home. And the seller, Bless his heart, now has some income instead of a vacant house that is costing him per diem. I think everybody took a chance on this deal, but, nothing ventured, nothing gained.

Call me if I can help.

Tim Sweeney realtor
30 Years Experience.
0 votes Thank Flag Link Tue May 1, 2012
If your middle scores are at least a 580, I may have a lender or two that will work with you. Otherwise I recommend getting with a lender who can get you with a credit repair specialist to help, depending on how low your scores actually are. Also as mentioned, you will need some kind of down payment and enough to cover closing costs typically, which you may be able to roll into the financing as well. As far as a home in Austin for $50,000, it will definitely be a fixer-upper which will require some money out of your pocket to fix it up. I do know of one or two manufactured homes that are for sale just outside of the Austin area for about $30,000 if you have the ability to get that kind of money. Then you would own the house outright and not have to finance, which is going to be your biggest obstacle at this point. Let me know if you have any interest in that and I'll be glad to help! Joe Jarusinsky, Keller Williams Realty, 512-261-4415
0 votes Thank Flag Link Tue May 1, 2012
Hi Meagan,

You will not be able to buy a home at this time. Your best bet is to find a lender or loan officer who will help you get moving in the right direction. Depending on your issues it may take a year or longer but the first thing you need to do is understand your credit and what steps you need to do to get things moving in the right direction. Be weary of credit repair specialists... not all of them are legit and some just take your money and do little or nothing.

Once you know and understand your credit you can take the steps necessary to improve your scores. If you go back in my previous answers I have laid out the steps to improve your credit and you can do it yourself at no cost.

Best of luck to you,

Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o 512.669.5599 m 512.633.4157 |
0 votes Thank Flag Link Tue May 1, 2012
Hi Meagan, I specialize in New Homes and can help you in to a free program provided by one of the builders we use. It's called the Home Buyers Club and it's no charge to you what so ever. It helps you get your score up and everything in order to buy a new home! I can even help you out of your lease when you are ready! Contact me anytime 512-649-0405 or visit my website

Bobby Paugh
Team West Real Estate
0 votes Thank Flag Link Tue May 1, 2012
Hi Meagan,

You will be hard pressed to find a home for 50,000 in Austin without it requiring some extensive repair. You might find something in the outskirts, but you are probably looking at manufactured homes as your primary option. With a score in the 500's, you will also have a difficult time getting a loan but there are some homes available with owner financing that wont look at your credit score so critically. The key with those is to have roughly 10% of the price of the home to put down to be considered for that type of program.

I don't want to seem like I'm just being negative but I wanted to give you the reality of what you will be up against. Good luck to you. Feel free to reply if you have any questions.

Randy Stevens
Web Reference:
0 votes Thank Flag Link Tue May 1, 2012
It's possible to get financing if your credit is 580 or better. Some brokers wi help you get your score up to qualify. The bigger issue is do you have money for a down payment and closing cost. You will need to be able to handle about 3.5% down payment plus have money for inspection, appraisals and closing.

Work with a real estate agent in your area and they can guide you through the process. The food ones also work closely with mortgage brokers as well that can help you.


Chris Hutchinson
Chris Hutchinson Real Estate
The Michael Group
0 votes Thank Flag Link Tue May 1, 2012
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