Jenny Maldon…, Other/Just Looking in Eckhert Crossing, San...

what are the options for people with no or bad credit?

Asked by Jenny Maldonado, Eckhert Crossing, San Antonio, TX Wed Jul 14, 2010

i have a 520 and my husband has no credit what are our options if any or do we just have to wait ?

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Jana Halvers…, Agent, San Antonio, TX
Thu Jul 15, 2010

You may find Dave Ramsey's Financial Peace University course helpful. It is offered all over town and it runs for 13 weeks. It will educate you on finance, insurance, spending, negotiating purchases, etc. You can look up for more information & a schedule of classes. A lot of Churches hold the class and you can purchase your workbook from them and save even more. It runs around $99 total cost for materials and classes are free.

Also a personal banker can help you establish credit with accounts other than revolving accounts (credit cards) and you may find it's a safer way to get that credit started. Kim Kelman with Wells Fargo is a loan agent that can refer you to a personal banker to help you. .

With your current situation an owner finance may request a sizable down payment. They are worth checking out because there are many distress situations and they need someone making the payment. Good luck.
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1 vote
Norma Tillem…, Agent, San Antonio, TX
Wed Jul 14, 2010
Jenny, I had a client with similar credit issues looking for a rental, but really wanting instead to buy. I searched the area listings for owners that were licenced real estate agents or brokers (LREA or LREAB) then sent these realtors an email asking if they would consider Seller Financing their property and, if so, under what terms. This gave my clients several homes and finance options to choose from.

Be sure to use an agent who understands Seller Financing and is up to date on current Seller Finance rules which may change after August 31.

Wishing you all the best, Norma
1 vote
Debra B Albe…, Agent, Port St Lucie, FL
Tue Nov 5, 2013
Our in house lender in Port St. Lucie, FL 34986 is excellent at credit repair. Just this year, we sold and closed a home for our First Time Home Buyers after they got themselves ready by working with Jennifer for about a year.

You just do not know what you do not know...for example, I paid off my Macy's card! Yippee! Should I close the account? NO..............Having unused credit is good for you! Who Knew. Debbie Albert Keller Williams Port St. Lucie
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J.J. Gorena, Agent, San Antonio, TX
Mon Nov 4, 2013

We work with the best credit repair loan officer in Texas! Give us a call or shoot us an email so we can get her contact info over to you. Don't give up!

We look forward to hearing from you soon--

The Trey Group
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Dan Chase, Home Buyer, Texas City, TX
Thu Jul 22, 2010
The only real option you have is to learn how to pay your bills on time.

Your husband with no fico score can apply for credit and then buy under his name in time. He just might end up with around a 740 fico score in a year or so.

Until you do that you will risk losing anything you buy on credit (even a house) for non-payment.

Rent until you fix your finances and be grateful you have a landlord who allows you to stay there with such a crappy fico score. many with low scores are having serious trouble finding someone to rent to them.
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Jennifer Cro…, Agent, San Antonio, TX
Thu Jul 22, 2010
Your best bet to get all your options laid out for you, and find out how to improve both credits is talk to a lender. They will be able to tell you what exactly you need to do for both sides of the credit. Your score is not far off and no credit is usually better than bad credit so it might be easier than you think. Good Luck. Call me if you have any questions. Jennifer 210-392-2216
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Tim Cahill, , Arlington, MA
Sun Jul 18, 2010
Hi Jenny,

I think you lucked out and the first answer to your question was right-on! If you really, really need to buy something now, then contact a reputable mortgage lender, or even better a mortgage broker. A broker may have access to many more financing options than a specific lender might.

But unless there's some urgent need for which you need to purchase and buy right now, the best thing to do would be to work on your credit ratings first. In the end, this will save you more money than you might imagine. If you get a loan with "sub-prime" credit, which is what both you and your husband have, your interest rate will be incredibly high and you'd end up paying thousands more $$ in interest than if you waited to get a loan with better credit scores. Just something to keep in mind.

Best of luck!

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Stephanie K, Agent, San Antonio, TX
Sun Jul 18, 2010
HI Jenny, Just beware of people who say they can repaire your credit and want to charge you to do so. There are lots of scammers taking advantage of people in your situation. The advice to speak with a lender to find out where you are financially is sound advice For most loans right now, the rule of thumb is that you are going to need a 620 score, but there are many factors that will come into play.

If you wish, visit my website and go to loan information, where there are mortgage calculators and links to local lenders who would be happy to help.

If I can help, please give me a call or an email.
Good Luck!

Stephanie Kelley, ABR, CRS, GRI
Keller Williams, Legacy
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Debra B Albe…, Agent, Port St Lucie, FL
Thu Jul 15, 2010
We tell our buyers in this situation to talk to a lender or to consumer credit services (free) and get some professional advise. For example...did you know that if you pay off a credit card you should not cancell it? It is better for your report to have the credit available!

There is a lot of tips and information you need.

Debbie Albert, PA
Coldwell Banker Residential
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C2 Financial…, Mortgage Broker Or Lender, San Diego, CA
Wed Jul 14, 2010

I highly recommend starting the process as soon as you can in terms of finding a reputable mortgage broker/banker in Texas most can guide you along the way along with putting you in touch with a credit consultant. Its easy to put it off and then time goes by and no progress has been made to repair or rebuild credit. It can take several months or possibly even a year. Especially with an FHA loan they will definitely look at your husband's credit report even if he's a non-borrowing spouse. Also, you can establish non-traditional credit such as having your utility and cell phone bills added on through the help of a mortgage broker/banker.
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Don Tepper, Agent, Burke, VA
Wed Jul 14, 2010
The best option is to repair your credit first.

And the best option for your husband is to establish credit.

There are other ways to buy. These include lease-option, lease-purchase, owner financing, subject to, equity sharing, wrap mortgages, and more.

But, as noted above, you should work on rebuilding your credit and your husband should work on establishing his.

Hope that helps.
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Don Groff, Agent, Austin, TX
Wed Jul 14, 2010
Hello Jenny,

Your best option if you want to buy now is to find an owner financed property. You buy this just like you buy a regular house but you pay the mortgage and the owners sign over the deed to you. You even close in a title company. Make sure you use somebody who understands the process so that your interests are protected. In this case you are the one who makes the mortgage payments and you get insurance on the property.

Then in a couple of years when you are able you can refinance the mortgage into your name. When you do this the home is deeded over to you. It may sound strange but it is perfectly legal but as I said make sure you do it right. Also make sure you close in a title company so that you know there are no liens or other surprises that can arise.

Once you do that or if you decide to work on your credit first it is best to talk to a knowledgeable mortgage broker or lender. They can work with you and help you establish credit. You and your husband need to do this right now though. Go to a bank and give them $500 or more and put that in a CD. Then get a secured credit card for the same amount. This way the bank has their collateral and you have a reporting credit card. When doing this always keep the balance at or below 40% of your available credit. Once you have had the card for a year you can typically get an unsecured credit card with that bank. Make the payments on time and don't mess up. You can also give the bank additional money the same way and get an installment loan. Pay the loan back and then you have another trade line. Most lenders require 3 trade lines that are at least 12 months old.

If you follow these steps and make sure you do not incur any other bad debts your scores will start moving in the right direction. I am also a mortgage broker in the Austin area so if you have any other questions please let me know.

Good luck to you.
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Voices Member, , Benton County, OR
Wed Jul 14, 2010
In my Opinion the Option is to Fix/Repair your Credit (Lots of reasons for a Low Credit Score..Some understandable legit .. some just Bad Habits which make you a Bad Risk)
Whatever.. they need to be addressed or ya are just rolling the Dice, most likely gonna end up with even worse Credit and owing a Huge amount...

Take the time you are dealing with the Credit Problems to learn all you can about the Market areas you are interested in plus the Process you are considering becoming involved in, so when it is time to Buy you make informed/wise Decisions and can Chose Lenders/Agents wisely...

Good Luck
0 votes
Justin Werner, Agent, San Antonio, TX
Wed Jul 14, 2010
Well then you need to have cash. You will need to find a seller willing to basically "be the bank" for you and do an "owner carry". What you can typically expect is about 10% down payment, a higher interest rate than market and expect to refinance into your own name a couple to a few years down the line, assuming you've been able to improve your credit and can be re-financed by a bank in the future. <---- That's the scary part, if you haven't improved your credit by that time you may lose all your money. Consult with a lawyer on that. If you have time, start by downloading your credit report from all 3 credit bureaus at and make sure there are no errors. You can report errors right online. You should also check out… for a great article on how credit scores work. You may also want to go through a credit restoration company such as Credit Restoration of Texas. Their phone # is 210-248-9061. Tell them Justin Werner with RE/MAX Exclusive sent you.

Justin Werner, ABR, CDPE
Accredited Buyer Representative
Certified Distressed Property Expert
RE/MAX Exclusive
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Steve Fergus…, , Austin, TX
Wed Jul 14, 2010
Well there are always options. If you want to buy now you will most likely be looking at an owner finance property with some money down. If you are willing to spend some time working on your credit then you could be in the conventional mortgage markey in a few months. When is the last time you looked at your credit report and have you had any professional review it with you to see what needs to be done? If not please give me a call or send me an email and lets create a plan of action to get you qualified. Thank you and I look forward to speaking with you soon.
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Lawrence Sot…, Agent, San Antonio, TX
Wed Jul 14, 2010
Hi Jenny-You want to contact a mortgage company and let them rate where you are. There might be some things you can do that will help you get into a home. Please contact me and I'll get you in touch with a mortgage company that can better advise. Larry Sotoodeh-210-421-4151
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