I have a credit score of 530 mostly all medical and student loans, I had to foreclose on a titled manufactured home last year due to job loss. Im

Asked by Nikki080584, 45040 Sun Jan 31, 2010

back in a good position now making 30k a year and my fiance making 25k a year. We want to buy a real home. Do I even stand a chance of purchasing a home?

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Don Tepper’s answer
Don Tepper, Agent, Burke, VA
Sun Jan 31, 2010
I agree with Jerry. You'd probably be better off renting for awhile. Get your credit score up, pay off some of those debts, and let the foreclosure fade a bit more into the past.

You might be able to buy a home now, but the terms wouldn't be good, and you wouldn't be able to buy nearly as much as you could with somewhat better credit. Whether you have a chance of buying now is not the question. The question is whether that'd be the right move for you. Answer: No.
1 vote
Christie Pey…, Agent, Moorestown, NJ
Sun Jan 31, 2010
My question to you is who pulled your credit and how did you arrive at a 530 credit score? Lenders do a tri-merge credit check, your middle score is used to approve you for a home mortgage. My best advice is to contact a lender who can take a mortgage loan application, and provide you with a true credit score. Once you have your true credit score you may qualify for an FHA loan, the credit criteria is changing and you may be surprised that you qualify. If you don't qualify today a good loan officer will give you advise on what you need to do to raise your credit score and help you develop a plan to get you credit worthy to purchase a new home.
I personally have worked with many buyers who have had financial struggles and were sure they would never be able to purchase a home. Many of them are now in their new home and with a loan they can afford. There are many options, but you need to find a well educated Realtor who understands the financial ins and outs, and not someone who pushes you on to someone else who may take advantage of your lack of mortgage understanding. If you would like to schedule a buyer counseling session, please feel free to contact me. There is never a charge and you can feel secure in knowing it is a private and confidential meeting. 513-290-4026
Christie Peyton, Realtor
Comey & Shepherd Realtors, City Office
1 vote
Russ Ravary, Agent, Commerce Township, MI
Sat Mar 2, 2013
No you don't rent for a while. Build your credit back up. Pay everything on time. Get a secured credit card and use it wiisely
0 votes
Ross Kelly, Agent, West Chester, OH
Sat Mar 2, 2013
Your best chance to get into a home would be a lease with option to purchase. A land contract would also be possible but would require a larger down payment.

After a few years with a careful credit repair program you should be able to convert to a full mortgage and purchase.

It will take some work to find your best opportunity but I have seen it workout well many times before.

Good luck

Ross Kelly
0 votes
, ,
Sun Jan 31, 2010
Hi Nikki,
Did you have a Chapter 7 bankruptcy along with the foreclosure? I have a USDA lender with a 5.5% interest rate, fixed for 30 years, after being out of a bk or a foreclosure for 18 months. FHA requires 3 years for a foreclosure. In regards to your credit score, we work with a credit repair company called New Beginnings that can do wonders. We would need to get your credit score up to 620 for this USDA Government program...please feel free to contact me at the number below for more information...thanks!

Best regards,

Joshua Pick
Sr. Mortgage Consultant
Consumers Real Estate Finance
0 votes
Jerry Lorenz, Agent, Strongsville, OH
Sun Jan 31, 2010

Unfortunately I think you may have to rent for a while. The loans that most traditional lenders are giving out today are credit score driven but there are a few mortgage brokers that still can sell off special case loans. I would try and find a Realtor that works with hard to finance buyers. You will have a shot but I think it will take a lot of work and some time.

Jerry A. Lorenz
Russell Realtors
Cell: 440 724 4402
Blog: http://jerrysrealestateblog.blogspot.com
Web Reference:  http://www.lorenz-543.com
0 votes
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