want to buy a house now!!

Asked by Dilanthi Perera, 95070 Fri Sep 19, 2008

Fico score is 533. Gross income is about $200,000. Small business owner. Single mother. My divorce is the reason bad credit happened.
My lease on my house is ending next month. I am desperately looking for a house.
Can someone help me? I need a FHA loan or something like that . There must be someone out there who is willing to take a chance on me.
I can put down about 3%.
I understand the whole banking mess... how can I find someone who will help me out there?


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CJ Brasiel, Agent, San Jose, CA
Fri Sep 19, 2008
Dee -

You don't mention how much you could put down. Lower credit scores can be somewhat offset by down payment and debt to income ratio. Reality is that you probably will not be able to fix your credit in one month. However, the best way to see if you have any possibilities to work around the bad credit score is to speak with a experienced FHA lender. Most here on Trulia can recommend someone to speak with. If you are looking for someone to help guide you through the process, let me know. I offer a 1-hr consultation, no-hassle, no-obligation.

Web Reference:  http://www.TalkToCJ.com
1 vote
Ali Moein, Agent, Saratoga, CA
Fri Sep 19, 2008
Good morning Dee,

Here is some information, hope you find it useful.
For getting an FHA loan you'll need to do a full document loan and your 533 credit score may cause a problem. The first thing is to consult an experienced loan officer, here is a number you can call:
Toni Kent: 408-771-6077. She will be able to explore all the possibilities of an FHA loan with you.

Once you have a clear understanding of loan process and the loan amount you can get, consult with a Realtor and find your ideal home. I live and work in the 95070 zip code and will be honored to work with you.

Ali Moein
1 vote
Andrea Wince…, Agent, Milpitas, CA
Tue Feb 17, 2009
Hi Dee, hopefully since you posted this back in September you've found a home. You have a great income but your credit score is rather low. Maybe a lender can overlook that if you have a larger downpayment and with an explanation letter of your reason for the low score. Since you are a business owner, you would need to be able to document your $200k income as well. Have you spoken to a mortgage broker? They have access to several programs. If you need a referral for one, please let me know. I work with a mortgage person in Los Altos who has done a great job for many of my clients. Kind regards, - Andrea.
0 votes
Tm, Home Seller, San Jose, CA
Thu Oct 2, 2008

My husband and I have a four bedroom house that may suit your needs in Silicon Valley.

And we may be able to work out terms favorable to all of us. We are willing to consider financing methods that include those that have been suggested by the professionals here.

Please email me at tek1313mail@gmail.com with the subject line "I want to buy your house - maybe!" and we will talk further.

0 votes
Scott Godzyk, Agent, Manchester, NH
Wed Sep 24, 2008
Your best move could be to find a house with a lease option, with your credit score you are under fha guidelines and with only 3% will not be able to get a conventional loan either. In a lease purchase, you first need to get prequalified with a local loan officer, and tell them what you are trying to accomplish, they can tell you what price range you need to be in, dont go and lease something you cant afford. then negotiate the lease, figure the monthly amount of rent, the term of the lease, look for at least 2 years. then negotiate the price of the house, then negotiate how much the seller will credit you towards your purchase. you should check with the loan officer if there is a maximum the seller can credit you. you may even ask them to build closing costs into the price. now if you purchase you will get these credits, if not you will not receive anything back. good luck
Web Reference:  http://www.ScottSellsNH.com
0 votes
Eric & Janel…, Agent, Cupertino, CA
Wed Sep 24, 2008
We would be happy to put you in touch with some of our Lender resources. They can go over what requirements you will need for an FHA loan. Another recommended strategy is a lease option, we have handled many of these successfully. Moreover there are a few other options available in this tough credit market. Feel free to call us, or visit our website to find out more about us. http://www.BOYENGA.com
Web Reference:  http://www.boyenga.com
0 votes
Adrian Hunti…, Agent, SAN FRANCISCO, CA
Sat Sep 20, 2008

I am a realtor and a loan officer and know how to fix credit. Currently I am using two lenders that do FHA loans that are Refer / Eligible. Email me if you would like me to help.

Welcome Home Real Estate & Finance
Adrian Huntington
925-818-6694 Cell
39 California Ave Suite 204
Pleasanton, CA 94566
Making homeownership a reality.
0 votes
Carrie, Home Buyer, Detroit, MI
Fri Sep 19, 2008
I just got a house and my score is 551, it was 420 last fall. Like you I'm a single mom and make plenty of money to afford a house, but just don't have the credit (mine was my daughters hospital bills/no credit due to the hospital bills). Obviously credit repair is an important issue, but if you need to find a place in one month then look at rent to own, That is how I got my house, and it is a turn key house, I don't even have to paint. I am able to rent this house month to month as long as I want and I have the price locked in. I can "try on the house" and make sure it's going to fit for us, and there are no major issues, and can move out if I want without being out any money or being stuck trying to sell a house. My downpayment is only $3000, and my monthly payment is $600/month and I gross $3000/mo. In a year when I am able to get financed my money has already gone toward the purchase price, and I don't have to relocate my kids again. Also, if for some reason I can't get financed in a year then they will do a land contract.
Also, (making that much money you're probably looking at a nicer house than mine). My house is valued at $83k, and I'm getting it for $69k, so, it's not way overpriced and I live pretty much out in the boonies with the cows and the cornfields, so I'm sure there is alot more inventory for rent to own where you're at.
Only other option I had was to go with a manual underwriter, they don't look at your score, just if you've paid your bills on time for the past year (I think they just look at housing type bills mainly, because they didn't care if I paid my hospital bills or student loans). Maybe try Flagstar bank if you go that route. Hope this helps!
0 votes
Norman Aless…, Agent, San Jose, CA
Fri Sep 19, 2008
Hi Dee,
My name is Allyson, Linda and CJ gave you excellent advice regarding having a good lender who could help you improve your score. I suggest you get with at least 3 different lenders so you can see your options and what interest rate you qualify for ( because of your low score, your interest rate will be higher than those with a higher FICO score) approx between 6.5% -7.5% ( right now this may change in the future ) with under 5% down should be doable. But first I would chose a realtor. The reason being most good buyers agents have quite a few sources for lending and can help you chose the best for you. When I recommend my lenders to my buyers I always give them 3 with one of them being a direct FHA lender ( by the way FHA is going up to 5% down in October). I also tell my buyers to let the lender know you are checking out other lenders so he/she works to give you the best deal possisble.
Now for chosing your agent, you want an agent experienced with buyers who will take the time to show you enough properties until you find the one that fits your needs. Also they will educate you on the procees so you feel comfortable making the purchase and finally their knowledge and communication skills are such that they will negotiate for you the best deal possible.

I have the experience and knowledge you may be looking for.
You can check me out on my web site http://www.homesbyallyson.com
Also if you like you can put in your own property search or email me with your needs and wants and I can set up a search for you. my email is allyson@homesbyallyson.com

If you would like a phone consult call me at (408) 705-6578 I'd be happy to answer any of your questions.

0 votes
Terri Vellios, Agent, Campbell, CA
Fri Sep 19, 2008
Do you belong to a Union? There is a special program I know of which offers great financing benefits for Union members or immediate family member of a Union. FHA programs are available for less than steller credit. I've worked with difficult situations I'd be happy to meet with you. There are also loan programs which offer down payment assistance and specialized financing. It all depends on your whole picture.
Web Reference:  http://www.terrivellios.com
0 votes
Linda Baker, Agent, Los Gatos, CA
Fri Sep 19, 2008
Hi Dee,
Let me start with the "glass is half-full" comment. You have very good gross income. Depending on why your credit score is as low as it is, you have an opportunity to both save money towards your down payment as well as paying off some debt. It is very important to be working with a lender who can help guide you to improve your score as quickly as possible with the maximum impact. I have clients who are in a similar situation, and in 3 months there has been significant movement in their scores (over 100 points higher.)
There are many things that can affect your credit score. The lender will have a good idea what will be the best strategy, once they run your credit.
Now is a great time to seize the bull by the horns. Select a great realtor & lender to team together and work with you to create your home buying strategy. It is important to have patience, because the harder you work on both improving your credit as well as increasing your down payment/ cash reserves, the better loan you will be able to get.
I have great lenders that I work with, who work hand in hand with their clients to help them achieve their goals. If you would like a referral, feel free to call or ping me.
And, congratulations on your decision to take steps in the right direction - towards home ownership! I would be happy to be a part of your team that helps guide you to that goal.
Good luck,
Linda Baker
0 votes
Laarni G. Om…, , Orange County, CA
Fri Sep 19, 2008
Hi Dee,

Please call one of the FHA lenders near you. But surely, he or she will tell you that your FICO score is lower than the minimum requirement of 580. Please consult a lender first before you an agent excites you to look for a house. It will be a total waste of your time without a pre approval.
0 votes
Michael More…, Agent, Los Gatos, CA
Fri Sep 19, 2008
Hello Dee,

One of the programs you speak of is the Nehimiah program thru the FHA. It seems you have already talked to a lender, if not than please do. I have a great one that may be able to help you. You can call me or e-mail me.
I agree if you don't ask you won't know. Good Luck

Mike Moresco
Web Reference:  http://www.mikemoresco.com
0 votes
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