Can low income poor credit people purchase a home in our area and how? I am tired of renting!

Asked by C, Champaign, IL Sun Jun 7, 2009

I just recently graduated from college and started a new job. My fiance has been working as a store manager for a video store. We are interested in purchasing a home seeing as I found a job in the area. Both of us have poor credit ratings, but have been working really hard to fix that. I have a high debt to asset ratio from paying for school on my credit card and he has some past bad debt situations. Is it impossible for us to get a loan, we've been paying over $800 in rent for way too long. Just trying to find out what possibilities there are out there. We make less than 60,000 a year combined. Is there any hope for us in the Champaign-Urbana area?

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Dallas Texas, Agent, Dallas, TN
Sun Jun 7, 2009

All lenders no matter who you are require 3.5% downpayment or more, based on credit scores, debt ratio, employment history of 2 years. If your credit scores are below a 620 might want to improve your scores then apply for loan. HOWEVER DON'T have anyone pull your credit scores for a loan till you have had negative issues addressed and deleted from reports.

National Featured Realtor and Consultant, Mortgage Loan Officer, Credit Repair Lecturer
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Hannah Flieg…, Agent, Larkspur, CA
Sun Jun 7, 2009
Hi C,

There is hope for you! You might be able to get into a rent to own or a lease option type of deal. You can check with a local property management company in your area. I am in California and I have a contact in Aurora I do not know how far that is for you. At least a rent to own situation is that a portion of your rent will be applied towards purchase credit for the buy in the future. While you are living in the home you can then work to improve your credit rating through credit repair strategies.

If you need assistance with credit repair this is what I do for a living. The fee is reasonable and a money back policy. Typically I get 80-300 point recovery. Good luck and call me if you need assistance with your credit repair or the Aurora contact. Thanks!

Hannah Fliegel
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