Home Buying in 99208>Question Details

Christine, Renter in Spokane, WA

Is it possible to buy a home with bad credit?

Asked by Christine, Spokane, WA Mon Apr 1, 2013

My husband and I both have bad credit from past divorces. His is 540, he has a descent income, averages about 50k a year, and has been with the same company for over 14 years. I am a stay at home mom... Other factors to consider, we have a resent car repo due to a misunderstanding with the finance company. We didn't have the funds to pay the car in full so we lost it. We have been renting for about 6 years from the same apartment management company, but we are outgrowing the apartment lifestyle. We would really love to be able to buy a house. I just don't know what our chances are.

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Hi Christine,
My suggestion would be to talk to a local lender that specializes in first time home buyers. They will be able to help you through the process of cleaning up your credit and can also help familiarize you with programs that might help. Please let me know if you need referals.
Terry Lipe ABR, CDPE, SFR, CSP.
Coldwell Banker Tomlinson
8205 N Division St
Spokane, WA. 99208
Cell: 509-999-7916
Fax: 509-242-7427
Email: terry@cbspokane.net
1 vote Thank Flag Link Mon Apr 1, 2013
Mo is right, better to fix your credit & then buy unless you want to pay much higher rates. why not rent a home in the mean time.

Good luck to you in any case,
Jirius Isaac
Isaac Real Estate Team
Champions Real Estate Services
TriStar Finance #MLO-107799
Office: 425-483-6849 Cell: 206-841-9976
Winner of Seattle Magazines 5 Star
Real Estate Agent Best in Client Satisfaction Award
Mortgage Loan Originator Best in Client Satisfaction
Web Reference: http://tristarfinance.com
1 vote Thank Flag Link Mon Apr 1, 2013
First of all, I want to thank you for writing down a question, real estate agents get all the time... (If i have bad credit, can a qualify for a homeI) I guess my answer is a little straight forward, but I believe in blunt honesty... That being said, I would love to sit down with you and your family, about what your options are... What are those options are though is tough to say, with out a little more information. I know there are many programs out there, and who knows what can qualify for. any other answer is just someones, best guess, but if owning your first home, is something that you really feel is best for you and your family, please do not hesitate to give me a call. I would personally be more than happy to try with you guys.
James Morgan
Real Estate Broker
0 votes Thank Flag Link Tue Dec 10, 2013

As everyone else has mentioned, this is not uncommon. DO not think you are the only one in this situation. I encourage you to attend one of my "First Time Home Buyer" classes. In this short evening class we serve dinner, have a lender talk about how to clean up credit and get pre-qualified, and go over the basics of purchasing a home. After the class you can stay after and talk to a lender about your situation and she can give you direct input and advice. We should have you on your way to home ownership soon!!!

Abbey Parsons
Coldwell Banker Tomlinson
0 votes Thank Flag Link Thu Oct 31, 2013
When All else fails call me...I have helped several people with not so good credit become proud home owners. With your last three years of W2's and about 5-10% down of listing price I could possibly find you not only a home but acrage to go with it. Often times Land owners with a manufactured home on it can only sell their property by owner contracts or cash, I have seen this often and have done several of these contracts for sellers and buyers! Call me when your ready to start looking.
0 votes Thank Flag Link Mon Apr 1, 2013
WE arelooking for acreage with or without a manufactured home on it. Are there any in the Valley??? or close to the Valley??? Thanks
Flag Thu Apr 11, 2013
I want to echo and expand on what has already been said. Repairing your credit and solving the issues that have caused it to be bad in the first place is critical to long term home ownership. I don’t know you or all that you’ve been through. I’ve met many good people that have gone through bad situations and ended up with bad credit.
First, order a copy of your reports and review them carefully. Dispute any errors you may find in writing to each agency that reports them.
While you are waiting for your report, establish a budget and a plan to get out of any current debt. This will do more for you than anything else. By getting out of debt and establishing available credit, you will boost your scores. Do not close any accounts, but only use credit for items you can and will pay off each month.
Save as much money as you can. When your scores are in the range necessary to qualify for a good mortgage your available savings will be necessary for a down payment and reserves. You will also be in position to handle any emergencies you confront along the way.
Consider working with a financial counselor to help you do this. On your own it’s easy to rationalize and stay on your past habits. When you have someone helping you, you stand a much better chance of succeeding.
0 votes Thank Flag Link Mon Apr 1, 2013

Your scenario is not uncommon. Are there ways to buy homes with "bad" credit...yes but you have to put a lot down and you pay much higher rates. Personally I would suggest looking into what can be done to improve your credit over the next 6-12 months and based on doing things correctly that should be able to put you in a much better position to be able to finance a property without the adding stress of a big down payment or very high interest rates. Be happy to speak if you would like to discuss further.

Mo Kamalzadeh
0 votes Thank Flag Link Mon Apr 1, 2013
I really want to thank all of you for replying to my post. I'm in the process of cleaning up our credit. In fact I have already had three item's removed! I never thought my husband and I would be in this position after so many year's of hard work home owner ship and owning our own Brook and motor store front in California. All I know is that there are so many worse off! So when I start to have a pity party I count our blessing's.. I do know that if I were in a situation to help people like us buy a home and carry the note I would do so without totally ripping them. I was hoping when I reached out on here that just with God's help we would find like minded people. Not that I do not feel so blessed to get all your help, I just feel for people such as us. I put this in Gods hands and will do all I can because he will help those who help themselves. Thanks again and keep giving forward.
Flag Thu Jun 6, 2013
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