I am a 23 year old working 2 jobs with 2 young children looking to rent to own my first home, because my credit is bad and I want to know what are the

Asked by Alexiswilson09, Charlotte, NC Mon Oct 26, 2009

Seeking to buy my first home, is it easier to rent to own or get financing from a bank and will a bank help you with bad credit?

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8
Frank Coxx, Agent, Indian Trail, NC
Sat Nov 7, 2009
Hello Alexis, we work with first time home buyers and also we help repair credit. Like Annette said their are lenders who can do 580, it is just a matter of seeing what is on the credit report.
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Annette Aber…, Agent, Hickory, NC
Fri Nov 6, 2009
Alexis,
There are lenders out there that can get you a loan with credit scores as low as 580. Check on a loan first and if that does not work out the mortgage brokers will work with you to help you to raise your credit scores. There are alot of homeowners willing to offer a lease to own situation and any Realtor's can assist you with where those are. Please feel free to contact me if I can be of any assistance.
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Ron Trzcinski, Agent, Aberdeen, SD
Thu Nov 5, 2009
It is almost always better to purchase than to rent. Typically Banks do not help you with credit, but many Mortgage Brokers can give you good advice on how to improve your credit. If you are not in a position to purchase at this time because of credit issues, then it is an unnecessary risk to rent to own. It is better to just rent while you clean up your credit and to than look for a home to purchase.
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Eric Ekovich, , Concord, NC
Tue Oct 27, 2009
Bad Credit is a relative term. The best thing to do is to have your credit reviewed by an expert in the field who can help you get a game plan to get some of your credit issues resolved. A real estate professional who works with a lot of first time home buyers can help you in this area. I personally would not go the rent to own route because I've seen a lot of buyers get their credit squared away in a short period of time and a rent to own will lock you in.

There are some real estate companies that also are now giving rebates on new homes purchased so check out my reference and get a rebate coupon to get the ball rolling.
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Lynn Johnson, Agent, Charlotte, NC
Tue Oct 27, 2009
Yes, NACA is a great organization to help you with your situation. However, it is a very tedious process and you must be ready to document everything. Plus you must send every bank statement and pay stub on a timely basis while getting your loan. The pay-off is great because you have little money out of pocket, no closing costs and an excellent interest rate you probably could not get on your own.

This will be a good process for you to get your financial affairs in order and truly understand the home-buying process. You do not want to get into a home and then not be able to make the mortgage payments. I have just recently been through this process with a client and can help you navigate through this program. Please feel free to call me at 704-756-7005 if you have any questions.
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Vivian Olkin, Agent, Carrboro, NC
Mon Oct 26, 2009
There is an organization in NC for people just like you, those with steady jobs and poor credit. It is called NACA--Neighborhood Assistance Corporation of America. NACA.org. You will need to sign up for one of their monthly Sat. morning classes, at which time you'll arrange to meet with one of their financial counselors. They will help you clean up your credit so you can qualify for one of their loans. Once done, you'll be able to buy a home through NACA with NO down payment and a lower interest rate. It is an excellent program. NC is one of only 14 states that participate in this. Please check it out.

Please notice again no down payment, zilch, zip, zero.

By the way, the 2 banks NACA works with are Bank of America and Citibank. Both offer low loans though NACA; if you were to go to them on your own, you couldn't get the same rates.
Web Reference:  http://CrazyVivHomes.com
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Shonn Ross, Agent, Charlote, NC
Mon Oct 26, 2009
Hi Alexis..first I want to say that I think it is great that you, as a 23 yr old parent of two, are looking to buy a home and that I understand how difficult it can be to build good credit under the circumstances...unfortunately, lenders are more strict than ever regarding credit scores. My first question would be to ask if you have any strong credit references such as rental history, utility bills, if so you may be a good canidate to maybe do a lease purchase and work with a lender that will advise you on what you need to do to improve your credit scored so you can qualify for a loan. Another possibilty would be owner financing. These two scenarios are a little more difficult t find, but not impossible if you are open to living in different areas of the city. I know of several very good and qualified lenders I could put you in touch with to get things started. If you have any questions, please let me know, I am more than happy to share my experience with you. With Wam Regards, Shonn

704-506-6767
Web Reference:  http://www.savvyshonn.com
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Lexie Longst…, Agent, Charlotte, NC
Mon Oct 26, 2009
Well, the first thing you need to do is work on improving your credit. You should start by talking to a mortgage lender who will work with you to determine what is bringing your credit down and give your strategies to get it up. They will also be able to give you an idea of how long it will take and how much home you can afford... once you get it up. This should be your first step.

Even if you do a lease to own, there will be a date or point at which you will need to get a loan to purchase the property. There are lots of investors out their that will actually purchase the house that you want .... and then lease it back to you on a lease purchase agreement. The disadvantage to you in doing this, is you will be paying "over market" rate rent on the house in order to get a credit toward your purchase. This could hurt your chances of raising your credit score if you are doing this instead of paying down your current debts. There are also new FHA rules that state that you have to fully document your lease purchase, and pay over market rate rent in order to get a credit at time of purchase. There are lots of rules - another reason to talk with a reputable lender.

I think your best bet is to try and save your money, fix your credit... and then go for a straight up purchase. You may find a seller willing to do owner financing for you... and that would be another solution but their are very few homes offering that... so your choices will be limited.
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