I would like to buy a new home...I have a family of six and its time to OWN...MY Fico is only 650 with an

Asked by Carmen Brooks, Los Angeles, CA Thu Jan 17, 2008

income of about $50,000 I own my own business and it makes about $75,000 a yr.

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Hi, , Virginia
Wed Mar 26, 2008
why is it time to OWN?
better to rent
maybe you will qualify for a loan
i doubt it


good luck
2 votes
Marti McClur…, , Monroe, OH
Thu Jan 17, 2008
Hi Home Buyer,

My first recommendation would be to sit down with a reputable, recommended lender. Have them provide you with a pre-approval, present you with options (programs, rates, etc.) and ask them a lot of questions. After you meet with a (good) lender, you will know where you stand, what price range/payment you qualify for, if you require seller paid closing costs, etc. At that point, you can decide if you are able to purchase the home you really want. Next, armed with the information the lender provides, you need to decide what you feel you can comfortably afford (principal, interest, taxes & insurance) to pay monthly. You should have a personal budget that includes all of your expenses, so you can protect yourself from becoming "house poor." One question, are the rents comparable to what your mortgage payment would be? After you have analyzed your financial picture, and you have a full understanding of your options, it's time to talk to your Realtor. Is this a home that you plan to own for 10, 15, 20 years? I don't necessarily agree that it is a bad time to buy, of course a good Realtor who specializes in your market area will be able to better answer that question. My thoughts - if you get into a home now, negotiate a good deal, make a commitment to that home for at least 10 years, now could be a good time. If homes in your market are continuing to drop, as Blayne mentioned, than you may want to work with your Realtor to time your purchase. Real Estate runs in cycles, always has. Even though we're in a rough market, the values will come back around when the market normalizes. There a numerous benefits to home ownership (like the tax benefits) and I still believe that real estate, in the LONG run, is a good investment. Sellers are willing to deal right now and buyers are getting incredible prices. There are investors buying up homes, in many different markets, and renting them with plans to sell (at a profit) when the market stabilizes. My home's value, just like everyone else in my market, is not what it was in 2005, but I have a nice home that I enjoy, I get the tax benefits, and I know the value will return when it's all said and done. I'm certainly not going to sell it and rent because it is going to continue to decrease in value for the next year(s). Bottom line, surround yourself with trusted, reputable, experienced professionals and use YOUR best judgement.

I wish you the best and hope things work out well for you.
2 votes
Blayne Pacel…, Agent, Studio City, CA
Thu Jan 17, 2008
First of all this is a bad time to buy. The prices are going to drop more and more. As long as the interest rates keep then you are going to make out. As far as your FICO, it's not bad but you need to work on it. I know someone that can help raise it above 700. If you must buy now then getting a home lease to buy is the best way to go. Unfortuneately the price is normally set on todays market and you will be buying at too high a price. I wiould be glad to put you on a prgram to get you the best price when you are ready.
Web Reference:  http://www.BlaynePacelli.com
2 votes
Perry Hender…, Agent, Austin, TX
Thu Jan 17, 2008
Are you aksing a question? Can you afford a home in California maybe... Try rent to own properties, then you don't have to worry about the FICO score
2 votes
Jeff Lemen, Agent, Santa Monica, CA
Fri Jun 27, 2014
Hi CB,
Give us a call and we can discuss your options.
0 votes
Gail Mercedes…, Agent, Beverly Hills, CA
Thu Feb 14, 2013
I would contact a direct lender for pre-approval. Self employed of $50k or $75k per year. Lender will figure net income. The FICO score should not be a problem. Lender will consider down payment. Request lending information on conventional and FHA financing. Once pre-approved you will know your price range and price range dictates area.
Information on FHA financing:

Gail Mercedes Cole
EXP Realty
0 votes
Orlando, , Los Angeles, CA
Wed Mar 26, 2008
Well now that the economic stimulis package is finally in play. Now you can afford to buy a home for your family of six...call me and I will show you how Orlando@Fed Citi Mortgage Banc 213-273-5847
0 votes
Jane Doe, Home Buyer, San Diego, CA
Sat Jan 26, 2008
If you think you do qualify, my lender could help you. She helped me out when other lenders had no idea what the program was or when they wanted to push me into another program.

Elva Wormley
Allied Home Mortgage
(408) 467-0500 or toll-free (866) 573-3331
Web Reference:  http://www.AlliedSanJose.com
0 votes
Jane Doe, Home Buyer, San Diego, CA
Sat Jan 26, 2008
I am going through the CALHFA program. You can check the guidelines and see if you qualify.
0 votes
Dot Chance, Agent, Burbank, CA
Sat Jan 26, 2008
Cb, don't be discouraged. This IS a good time to buy. Sellers are making deals, there are a lot of foreclosures out there.

I have two thoughts in mind for you. Do you have a downpayment? If not, a downpayment assistance program would probably work for your family.

I have a couple of different people for you to talk to about financing. One of them is if you would qualify for the downpayment assistance program. The other one is a great loan officer that has a great track record for helping people in your situation!

Let me know if I can help you.
Web Reference:  http://www.DotChance.com
0 votes
Tisza Major-…, Agent, Upland, CA
Fri Jan 18, 2008
Hi Cb,

I agree with my colleagues that speaking with a qualified lender is a great place to start. Be wary of anyone who says that they can raise your FICO for you. It can be done but take work and responsible behaviour on your part.

Depending upon where you want to look into buying a home there may be financial assistance programs available through the City, County or State that could assist you with your income level as a qualifier. Also, if you are a veteran there are some wonderful programs available for vets as well.

I would be happy to sit down with you to discuss your options and see what might be possible for your family. I disagree with the opinion stated that it is a bad time for you to try to buy a home right now. The bad time for you and folks in your financial position was really a few years ago when it was easy to get yourself into a home that you could not afford for the long haul. Right now as prices normalize (because that is truly what is happening) and interest rates remain at historical lows, if there is a way to purchase a home there is no time like the present.

Feel free to give me a call. I would love to be of service.

Take care,

Tisza Major-Posner, Realtor, Keller Williams (909) 837-8922 or (213) 392-4084
Web Reference:  http://Route66Living.com
0 votes
Terra Bruns, Agent, Santa Clarita, CA
Thu Jan 17, 2008
I would love the opportunity to work with you!! It is my distinct pleasure to assist hard working, entrepreneurial types like me to own their first home!! Please, contact me today and you could own your own home in less than 60 days!!
Web Reference:  http://www.TerraBruns.com
0 votes
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