I have horrible credit but a great job for 2 years - almost 100K. How can I buy a house?

Asked by Mark, Aurora, CO Sun Jan 18, 2009

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John Jeffrey, , Denver County, CO
Tue Jan 20, 2009
FHA, my good man. You will have to address why your credit is "horrible". If you have outstanding collection or judgment debt you may have to pay off before you purchase. Remember that is you do have collections usually you can negotiate a lower payoff. I normally review my clients credit report and discuss with them a plan to correct their credit. Having credit issues isn't a deal breaker however, you dop need to address them. FHA is the most flexable for this scenario. Mkae sure that whom ever you work with that you understand that buying a home is a very big step. You need to budget and (like everyone else here who responded has suggested) make sure you can afford the home you want to purchase. Live within your means is the theme of 2009 and that includes your home!
1 vote
, ,
Mon Jan 19, 2009
Dear Mark: Credit is so important and I recommend that you work on getting your credit restored before buying a home. There is a huge difference in the interest rates with lower credit scores. Even if you do qualify for a loan, the difference in the monthly payment would be substancial.

A proven credit restoration company can help restore your credit, increase your score, and get you on your way. The process can take upto 6 months. As one of my specialties, I provide credit restoration services. I have an online video that will walk you through the process. Please feel free to visit the following site - http://www.creditrepairproof.com -

The program is prooven and amazing - After watching the short video, feel free to contact me with questions and information on how to get started in this amazing program. The proof is in the pudding. Good Luck

Gwenn Tanvas
Certified Mortgage Planning Specialists
1 vote
Voices Member, , Benton County, OR
Sun Jan 18, 2009
Mark, It looks like I'm going to be the one giving the most unpopular anwser....

IMHO you should spend every moment working to repair your "horrible" credit with the money from your great job. Why is your credit horrible? Why should someone loan a large amount of money to someone with a questionable payment history? Why isn't your first thought, Hey I got a good job now I can pay off my debts?

Fix your credit and you will find that getting a loan will be easier and you will end up saving money..
Buying a home will be a huge new responsibility and you should take care of the old reponsibilities first...

IMHO, anyone who would consider someone with horrible credit for a home loan is operating under a code of ethics I don't understand. (I include the goverment) The only big picture here is greed!

Enablers hoping to profit

Told ya it wouldn't be popular, Dunes
1 vote
Annette Law…, Agent, Palm Harbor, FL
Tue Aug 5, 2014
This question asked Jan 2009.

Mark is well on this way to a new chapter in his life.
0 votes
My NC Homes…, Agent, Chapel Hill, NC
Tue Aug 5, 2014
Start actively working to repair your credit. While you may get an FHA loan, it's going to cost you more than necessary because of your credit. Also you should investigate FHA's HAWK program which will educate you and get you better rates once you've successfully completed their program.

Check out the link I've attached below to understand the importance a credit score has in terms of getting a loan. Basically there are only three things that any lender considers when reviewing a buyer making a mortgage loan application: Income- You seem to have this covered, Assets: How much cash do you have to put into the purchase and Credit- You've already admitted that this is where you're weak.

Good Luck and Happy House Hunting.
0 votes
The Dixon Gr…, Agent, Denver, CO
Mon Aug 4, 2014
FHA is probably the best option to go with. There's some great programs out there for you to consider. Are you a first time home buyer or have you been through this process before? Credit score is going to have to be decent in order to qualify for this loan.
0 votes
Lorie Gould, Agent, Duluth, GA
Sat Feb 14, 2009
Mark... what does horrible credit mean to you? Some people have horrible credit and don't realize they have horrible credit. Others think they have horrible credit and it is not so bad. And how old is the negative credit?

And have you considered using a credit repair company? There are hundreds of credit repair companies in the marketplace; however, most of them charge an arm and a leg and most of them are not reputable. There is one company that I have sent many many clients to because it is actually a law firm, their fees are minimal, and they do an incredible job! And there is always someone to actually speak! If you would like their information I would be glad to share it with you... simply click on my profile and email me directly.

Good credit is becoming a must. FHA is still forgiving to bad credit that is 2 years old or older meaning your last two years needs to be clean. Financing for homes, cars, etc has become harder to obtain so paying your bills and obligations on time is a must.
Web Reference:  http://www.HomesByLorie.com
0 votes
Kathryn L Ca…, Agent, Conifer, CO
Sat Feb 14, 2009
Greetings Mark:

I would contact 3 Mortgage Consultants-- and go over the pre-approval process/ and if needed-
get you on the right track to purchase a home in 2-6 months. There are a lot of great deals out there!

With FHA/ a lower fico score is needed: 580 or higher--and only 3.5% down-payment .

Free Home Lists/ and Additional Advice: FindingTheHome.com

All the best, Kathryn
Web Reference:  http://DenverHomeLiving.com
0 votes
Mark Sawyer, Agent, Littleton, CO
Wed Jan 21, 2009
Credit issuses are not always a bar to homeownership but a negative/detrimental credit history most certainly prohibits access to the best rates and programs to financing you home purchase. I discourage clients form paying for credit repair - that money is better utilized paying off debt or collections. Credit repair services do not do anything you can't do yourself - for free - if you diligently follow through.

For more information contact::

Mark Sawyer,
720 922 9266 direct
720 981 1907 fax
Real Estate Results with Integrity
0 votes
Leslie Monaco, Agent, Greenwood Village, CO
Tue Jan 20, 2009

I agree with all of the post below. I think that you should try to get your credit as good as you can before you consider buying a home. Most people don't realize your credit changes on a monthly basis. That means that with some work (ie paying on time, paying down debts, paying off collections, etc) you can get your credit back.

I have some credit tips on my website, go to: http://www.leslieheldenbrand.com/understanding-credit.asp to see some great articles on understanding credit.

If you have any further questions, please feel free to contact me!

Leslie Heldenbrand
0 votes
The Kinslow…, Agent, Centennial, CO
Tue Jan 20, 2009
John, I love your theme for 2009!
0 votes
Brian Burke, Agent, Highlands Ranch, CO
Mon Jan 19, 2009
Hi Mark,
Have you spoken to a loan officer?
There are some good answers here. I wanted to state that you should sit down with a Loan Officer to see how bad your credit is. With a good down payment you may be ok? How much home do you want to buy? Do you own a home now? Are you current on Rent and or Home payments?
0 votes
Bill Eckler, Agent, Venice, FL
Mon Jan 19, 2009

Many people have the misconception they have terrible credit, only to find it isn't as bad as they thought. Our recommendation is to be in touch with a couple of loan agents for their input. Hopefully you will be pleasently

Good luck
0 votes
The Kinslow…, Agent, Centennial, CO
Sun Jan 18, 2009
Hi Mark,

Blase DeRoco with Freedom Financial has helped a lot of our clients with similar scenarios get loans. Freedom Financial is a direct lender, they can look at the big picture and get people approved that a lot of other lenders can't. Blase gets them approved and we get the fun part of helping them find their new homes. 303-680-0633 I hope it works out for you and you get your new home.

Sandy Kinslow
The Kinslow Team
Coldwell Banker
0 votes
Dallas Texas, Agent, Dallas, TN
Sun Jan 18, 2009
Contact a mortgage broker detemine how bad your credit is , if declined request loan officer provide you suggestions how increase your scores. Options pay you debt down, credit repair, your scores can increase within 90 days.
Web Reference:  http://www.lynn911.com
0 votes
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