Home Buying in Orlando>Question Details

John, Home Buyer in Orlando, FL

Im a first time homebuyer with non existant credit . But excellent repair skills. what areas should i avoid?

Asked by John, Orlando, FL Fri Jan 30, 2009

I am a first time home buyer looking to buy a home or townhouse in the next few months in Orlando Fl/ surrounding areas. I am wondering if I can find a home in need of repairs 'but not like needs complete rehab / unliveable" for 30k or less. My credit is non existent. Ive come accross a few realtors who only listen to half of what i say also any ideas.
Thanks to all who respond.

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Thanks to everyone who answered my questions.
0 votes Thank Flag Link Thu Feb 12, 2009
There are some great answers here,I would suggest getting together with a loan specialist to work on your credit repair.
Once that is done ( it will take some time) Then you can begin in earnest your search for a home.
This Market is going to be strong for a while. Yes Strong! There are many more rehab properties to come. Be patient and start with your credit repair. Keep a keen eye on areas you are interested in to best be ready when the time comes.
0 votes Thank Flag Link Mon Feb 2, 2009
Hi John,

Have you considered looking at HUD Foreclosures? I have to say, honestly, most banks have a minimum loan amount which is usually around $40,000. However in this market I am sure they will make exceptions!

There are several programs for First Time Homebuyers that offer down payment assistance to make your mortgage more affordable. In addition, given your lack of credit, you may be eligible for an FHA loan.

FHA loans are ideal for First Time Homebuyers because of its flexible requirements. Since your credit is "non-existent", FHA's guidelines allow borrowers without credit to create an alternative report of creditors.
You must have a payment history with those alternative creditors for a minimum of 12-24 months. For example, if you rent from a leasing company or apartment complex and you can document two years of on-time rental payments then you can use your landlord as an alternative tradeline (creditor). You will need to provide at least 4 of these types of accounts/creditors - we usually look at your utilities, cell phones, car insurance, etc. You must not have had any late payments during the last 12 months.

In addition to creating that alternative profile, you will need to prove income and assets. Income - Paystubs, w2's. Assets - bank statements, 401K plan statements, etc. With respect t the bank statements, as a client with non existent credit, the bank will review your bank statements for negative activity. You cannot have any overdraft charges or negative balances.

If you are eligible for Down Payment Assistance, you will be required to contribute a minimum of $1000 to the purchase transaction. This will cover some of the expenses associated with purchasing a home such as the appraisal, home inspection, termite inspection and earnest money deposit.

Again, without credit the banks will scrutinize all of the documentation you provide, so you don't want any negative information in support of your loan application.

There are two FHA programs I want to mention in closing. FHA offers a rehab program that allows the borrower to incorporate the cost of the repairs into one loan. This program is called FHA 203K Streamline - it's a great program for a FTHB like you - The repairs cannot involve any additions but you can renovate the existing home. There are restrictions on the types of renovations permitted but, for the most part, you can do almost anything. You can use this loan with down payment assistance from Orange County.

The other FHA program allows a borrower to purchase a HUD foreclosure with as little at $100.00 down. Again some restrictions apply. In addition to this, if you are in law enforcement, a firefighter, EMT or teacher, you may eligible to purchase a HUD foreclosure for 50% off the listed price.

You should find a lender that is well versed with the types of grants available to First Time Homebuyers and more importantly, she should be able to provide you with a loan that best suits your needs.

I am a Down Payment Assistance Specialist. Not all lenders work with the SHIP - this is my niche.

I hope this helps! Feel Free to contact me if you have any additional questions.

Jacqueline Clarke
Down Payment Assistance Specialist/Mortgage Consultant
Enterprise Mortgage Group, Inc.
0 votes Thank Flag Link Sun Feb 1, 2009
Hi John,

It is vital to have a team, Realtor and Lender, who listens to your needs. It is possible to find a home under $30,00. It will take research, work and knowing that you may have to complete a number of repairs. For example, you can look into purchasing a HUD home, or Fannie Mae also offers homes. You do need a Realtor and Lender who is experienced in, not only, working with First Time Homebuyers, but working with the programs available, like HUD, Fannie Mae or the Neighborhood Stabilization program. Feel free to contact me if you have any questions.
0 votes Thank Flag Link Fri Jan 30, 2009
Hi John,

Many first time homebuyers don't know that you don't always need a credit score to purchase a property. With an FHA loan you can use alternative credit such as utility bills and past rental history to qualify for a home. The first step I would recommend is to work with a lender well versed in FHA loans to help you get qualfied and then work with a realtor who specializes in working with first time home buyers and the special financing programs available to them. Good Luck :)
0 votes Thank Flag Link Fri Jan 30, 2009
Hi John

I am sorry to hear that you are not being heard. Hopefully those of us that participate here to answer your questions will be able to help. Everyone should have an opportunity to own a home. There are many steps you can take to establish credit. Have you talked with your bank or a Mortgage Co? Are you just interested in purchasing below $50.000? and if so do you have cash for this? These are just a few questions. To answer yours without too much detail, a single fam home for around $30,000? Not so confident about that but perhaps a condo or townhome could be found depends on location. Remember with a condo you will have monthly fees that could be very high again depending on the location.

My suggestion here is to find a Realtor that you would be comfortable with, a bank or mort broker that can advise you on credit or lack of and how to build your credit history or score if necessary. You will need a trusted inspector or contractor unless you want to do it yourself and there are guidelines for that as well. Any Realtor here will offer you many differing opinions and many resources that you can use. Engage a Realtor in conversation to determine if he or she will listen to your needs and I suggesst you speak to a few before you make a decision with whom you wish to work with. Keep in mind it is generally accepted to work with one Realtor at a time but you can change Realtors if you do not feel your needs are being met. Make sure you advise one Realtor that you will not be using their services before moving on, this is common courtesy in our profession. At least you know that you have that flexiblity. Go For it! You never know what you will find out there in today's Market.

If you would like more information or details I invite you to visit my website. Thank you for the opportunity to help.

Gay Middleton
Realtor/Sales Specialist
Web Reference: http://www.gaymiddleton.com
0 votes Thank Flag Link Fri Jan 30, 2009

Need to ask a question please don't be offended, how do you plan to buy a property?

I've been in many Short Sales and Foreclosures all over the Orlando Metro Area with Buyers and sold distress homes throughout the same area.

You can email me through my website below or click the blue 'Broker Dave' next to my picture.

No promises but maybe a direction,

Dave Lowe, broker
GRI / ePRO / GREEN designations
Search Central Florida Coast to Coast: http://www.myfloridahomesmls.com/davelowe
My Bio: http://brokerdave.topproducerwebsite.com/daves-bio-.asp
Customer Testimonies: http://brokerdave.topproducerwebsite.com/customer-testimonial.asp
Web Reference: http://two4oneoforlando.com
0 votes Thank Flag Link Fri Jan 30, 2009
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