Is it possible for us to get a home loan?

Asked by Travis, Pennsylvania Thu May 22, 2008

My wife and I just recently paid off all our debts (we had owed around $6,000.-). We have never really established much credit. Our credit scores are a low 600. My wife still owes some medical debts that are in collection. We only have $3000. in saviings. I make approx. $35,000.- a year. My wife is a sahm but works pt. She makes approx. $10,000.- a yr. I have had my job for 8yrs and she has only been at hers for about 6mths. Is it possible for us to get a home loan? The neighborhood next to my job has homes for sale around $130,000.- We live frugal, grow our own foods and I bicycle to work and such. We pay $900. for rent right now plus another $100 in laundry and another $150.- in electric/gas. I really think we could afford a house.

Help the community by answering this question:

+ web reference
Web reference:


The Sold Team’s answer
The Sold Team, , York, PA
Thu May 22, 2008
Travis, from the info you have provided sounds like you are able to get a loan for a home. There are many programs out there that are for first time Home Buyers like you and your wife. It is also a good idea to ask for Sellers help with the closing costs so you don't have to pay so much at the closing. There is a great program in conjuction with FHA called Ameridream grant. That sounds like it would work perfect for you. The first step is to talk to a lender, a reputable lender and see if they offer such programs. Different banks offer different programs and it does not hurt your credit to look around. Peoples Bank is a great bank in many locations in PA they have some really good programs. With the amount you pay for rent you can absolutly afford a home. Feel Free to call me with any questions.
Cindy Dine
The Sold Team
Century 21 Heritage
717-757-9487 ext. 359
0 votes
Pacita Dimac…, Agent, Oakland, CA
Thu May 22, 2008
Get thee to a lender, post haste.

The first step is talk with different lenders. Attend first time buyer seminars. Get educated about various buyer assistance programs in your city (you can google and search in your city === usually these city-specific buyer assistance programs are online).

Good lenders can provide advice on how you can improve your credit scores, etc. But this will all take time. The important thing is to get started and to implement the lender's suggestions.

There's a program called the Nehemiah Program wherein the Seller kick's in some of the monies you will need such as downpayment and closing costs. Here's the link. Check it out. Maybe it will work for you.

Good luck!
2 votes
Myke, Home Buyer, 89449
Thu May 22, 2008
There are programs out there for your type of situation.
Look into FHA loans.
You may need a bit more savings for a down payment, but the lending guidelines are much more relaxed, and the down payment is as low as 3%.
Not saying "oh yea for sure you can do it!" - it may take a little bit of time and some work - but it is possible.

Take your time, do it right, and don't get in over your head. You can make it happen - but it may take some patience.
2 votes
Don Tepper, Agent, Burke, VA
Thu May 22, 2008
As is advised below, consult with a good mortgage broker to find out what's available, what credit scores are expected, and so on.

Just some general advice: Work on raising your credit score some. Address the medical debts that are in collection. Clear those up; negotiate them down, pay them off. Have your wife stay at the same job, to build up more job history. And stay at your job; 8 years is good.

Financially, sure, it sounds as if you can afford those homes. If you're renting for $900, after tax deductions (I'm not an accountant, so this isn't accounting or financial advice) you could afford $1,200 (maybe more) in mortgage payments. And that would be more than enough for a home costing $130,000.

It's possible to buy for almost no money out of pocket, with some of the programs mentioned below. However, a broader view of your finances might suggest that you should build up more in liquid assets--maybe $20,000 or so.

What you should probably do is set a 6 month-1 year time frame to raise your credit score, build up some additional savings, and add some time to your wife's employment history. And you should immediately talk to a good mortgage broker and start interviewing Realtors, so you'll have a good gameplan and your team in place.

Good luck.
1 vote
, ,
Thu May 22, 2008

From what you are telling me you sound like a good canidate for some programs. But withour knowing the specifics of exact credit scores and exact debts and collections its hard to tell. There are many programs out there for first time home buyers and especially for your income bracket. There is the USDA loan which lets you include all your closing costs, theres no mortgage insurance, and rates are low but the property must be eligible. There is FHA which requires 3% down but the seller can contribute to that as well. Keep in mind you will have to qualify with taxes, insurance, and private mortgage insurance if required. If you paid off ALL your debts with an income of 45k a year both of the above programs would allow a housing payment with a back end ratio of 41% about $1500 a month. Should you need further assistance please feel free to contact me 800-839-6186x334. Thank you and good luck
0 votes
Michael D De…, , 18969
Thu May 22, 2008
There are a few good mortgage programs out there right now. Some are area specific. From what you are saying here, you may be a good canidate to buy a home. Work with a good Mortgage conultant (myself comes to mind) and a good real estate agent and you could be in a new home sooner than you think! Good Luck!

Michael D Delp
Mortgage Pro
4802 Old Bethlehem Pike,
Telford Pa. 18969
Ph- 215-453-1025
Fax- 215-453-1012
Cell- 610-762-0318
0 votes
Trisha Wade, , York, PA
Thu May 22, 2008
One of the best things to know is what payment you can afford. You not only have to look at the price of the home, but how much taxes will be as well. They will add to your monthly payment. There are a few other things that can add to a payment as well. If you are comfortable making payments every month and have at least 3% down, you may qualify. You will never know until you shop arround. You are doing all the right things by looking at what you can be qualifed for first. Many people want to get out there and look at homes, but find out later, they cannot afford them. I would really start talking to lenders who are willing to help. I know many lenders in York that will even help you become ready to buy in the future if you cannot at the present moment. Just talk to someone, it's the best thing you can do. Let me know if you have any questions.
0 votes
John Badalam…, Agent, Wayne, PA
Thu May 22, 2008
Specific and taylored to Pennsylvania, there is the the PHFA program (Pennsylvania Housing Finance Agency) which offers lower interest rates, and in some cases downpayment and/or closing cost assistance. They are able to offer these programs through the sale of mortgage revenue bonds.

You need to work with a participating lender familiar with PHFA (their web site offers a list by counties).

I have provided the web reference, below.

Best of Luck to You!
0 votes
Sharon Harris, Agent, Hanover, PA
Thu May 22, 2008
Sure there is hope for you. I am about to close a deal with a couple that had a credit score in the middle 500's. I can pass along this mortgage companys number to you if you wish to calll them and get some facts. They still do in house loans meaning they will work with buyers and financne it in there own company not sell it out to big banks. FHA is the way to go in your situation. They do not worry so much over medical bills. they are more interested in credit cards and late payments. There are homes listed in your area for less then $80.000. I just showed a very nice property for $99,000 that was in great shape and had a nice yard. if you want it bad enough you will do what it takes to get there!!! Let me know if you would like to haave some listings in the area. I can get them to you. Just need an e mail address. Good Luck
0 votes
Myke, Home Buyer, 89449
Thu May 22, 2008
Nehemiah is a pretty interesting program - but it can be tricky to get sellers to sign up.
In this day and age, it may be a bit easier then it used to.

I do agree - start talking to lenders and exploring your options. Also do yourself a favor, and do a lot of your own homework as well. The more you understand about all of these things, and the more knowledge you have - the easier the process becomes.
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more