New to buying. Where to start? Husband has immaculate credit, low wage tho. Any suggestions for financing?

Asked by Jeshua Scanlon, Asheville, NC Thu Dec 27, 2012

I have a new business, bad credit.

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Debbie Franc…, Agent, Asheville, NC
Sun Dec 30, 2012
Hello Jeshua,

My colleagues below have given you a lot of good ideas. I would like to add that the organization that can help you put it all together is OnTrack Financial which is a local nonprofit dedicated to financial literacy. They offer a class for first-time home buyers which is required for some of the programs offered by NC Housing Finance Agency, USDA and Mountain Housing. The class costs about $35 and I know there is a class starting in January. I will be teaching the section on how to choose and work with a realtor. To find out more about OnTrack, check out their website or call 828-255-5166. They can also advise you on your credit issues.

At and at, you will find a list of realtors who have taken additional training on the programs available to first-time homebuyers. Clients for realtors who have received the Workforce Housing designation (described at Homes 4 NC) may be eligible for additional down payment assistance through Homes 4 NC.

Hope some of this was helpful. Let me know if I can be of any further assistance.



Deborah H. Francis, GRI, ABR, ePRO, SFR, GREEN, CRS Candidate
Keller Williams Realty
Associate Broker/Realtor®
86 Asheland Avenue
Asheville, NC 28801
cell: 828-553-9019 email:
Please visit my website;
"Your Move is My Mission"
1 vote
We did go to ontrack. They didn't have any suggestions besides asheville savings, who only approved a $30,000 loan. I will check out the class!
Flag Sun Dec 30, 2012
Margaret Moo…, Agent, Chapel Hill, NC
Fri Jan 11, 2013
Start by talking with a lender, that way you will know what your options are. You may have to wait a little while in order to improve your credit and increase your buying power, but with time you should be able to find yourself in a better position.
0 votes
Terry Farnsw…, Agent, Lisle, IL
Sun Dec 30, 2012
Hi Jeshua,

As stated below, for the time being - you'll probably want to stay off the credit application due to A. your low credit score, and B. lack of verifiable income/length of time in your new job.

As for your husband, he could certainly apply solely for financing....but the question is are you going to want to purchase the type of property afforded solely using his income? I don't know the market in your location, so I'm not sure what you can "get" for what he could qualify for on his own. Keep in mind that in addition to the principal on the loan, unless you put 20% down, you'll most likely be paying mortgage insurance, in addition to interest, taxes, and homeowners insurance. Some exceptions to this would be if you found a Fannie Mae/Freddie Mac owned property that was eligible for HomePath/HomeSteps financing (only 3.5% down needs and no mortgage insurance required), or USDA financing (the property would have to "qualify" for this to be eligible). With any financing however, your debt to income ratios would still have to qualify - regardless of the loan product.

My suggestion would be to first figure out what you can COMFORTABLY afford on your own, using an online mortgage calculator, etc. Then, meet with a mortgage professional who can give you an idea of the amount of financing you would qualify for. Lastly, determine if that amount is going to afford you the type of property you want/need. If not, you may be better off waiting until you can qualify jointly. The last thing you want is to be "stuck" in a home you can barely afford, that doesn't even meet your needs.........simply because you want to buy NOW!

Hope that helps!
0 votes
Thank you! That's a very helpful answer. We don't have a down payment. Husband only approved for 30 K thru Asheville Savings. It's really frustrating to pay $1,000 per month for rent when that could be a mortgage.
Flag Sun Jan 13, 2013
Team Browne…, Agent, Asheville, NC
Fri Dec 28, 2012
Hello Jeshua.

There are several opportunities for 1st time buyers. Lenders look at 3 different factors when assessing a borrower's application. 1 is credit history, 2nd is income (ability to repay) and 3rd is equity (downpayment) - you did not state whether you had money for a downpayment. All of these factors together determine the loan program and repayment terms that you qualify for. We have successfully worked with many 1st time buyers and would love to assist you with good lending referrals and hard work finding you a home that works for you and your budget. If we can help, please call or write.

Scott and Carol Browne
Keller Williams Professionals
Asheville, NC
0 votes
Alyssa Augus…, Agent, Asheville, NC
Thu Dec 27, 2012
Hi Jeshua -

I'd start by checking out Mountain Housing. They're a local Asheville service that can help first time buyers find a number of ways to become homeowners.

You should also just go talk to one of the local banks, Asheville Savings is quite good and would be happy to help you figure out what your options are...if they don't have a financing option that will work with your credit situation, they will be able to point you to the other options in our area.

Finally, if either of you is a teacher or hospital worker (or a variety of other lower wage service providers) there are special programs in our area to help.

Good luck...and if you need any help when you're ready to start looking, I'd be happy to assist!

0 votes
My NC Homes…, Agent, Chapel Hill, NC
Thu Dec 27, 2012
Chances are you will need to stay off the loan application as your credit will be an issue if it's as you indicate. One place I'd start is on the website where you can find several different assistance programs available here in NC for first time buyers such as yourselves. You can access lenders through this site that can let you know what you can afford and can pre-qualify you for a loan.

The next step is to find an experienced Buyer Broker who enjoys working with first time buyers. I've attached a link below on how to interview Realtors. Be patient if necessary, finding the right agent who will be working on your behalf can and will make a tremendous difference.

Best of luck to you and your family, I hope you have a healthy and exciting 2013 including buying your first home.
0 votes
Thank you so much! Are you too far to be our realtor?
Flag Thu Dec 27, 2012
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