Home Buying in Memphis>Question Details

Kelly Cooper, Home Buyer in Memphis, TN

My husband and I can afford to buy a house (get a mortgage) but we have low credit scores...We are finally

Asked by Kelly Cooper, Memphis, TN Tue Jan 20, 2009

starting to make enough money so that we can work on our credit and start building it back up (we did a real number on our credit in college). There are so many AMAZING deals right now that we'd love to find a lease/purchase option that we could take advantage of! We are most interested in the 38119 area. We need 2000 sq ft, at least 3 bedrooms and a yard for our dogs. If anyone has anything that might work for us please let me know! We are having a baby in a few months and very ready to move!! We currently pay 1150/mo in rent but comfortable with paying up to 1300 or so...

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Take a look at this web site http://www.pumpupmycreditscore.com this is the program I mentioned in my earlier answer. This program works!!
0 votes Thank Flag Link Tue Jan 27, 2009

Good morning! We specialize in working with credit challenged buyers and have produced amazing results. Not sure if you have ever heard of Uptown Memphis, it's not in 38119, it's actually in downtown Memphis. We have a program called Hope VI which is a Federal subsidy (basically a 10 year grant) that makes ownership very affordable. I only have 6 brand new homes left and upon qualification your may be eligible for upto $30,000. In essence if the purchase price is $150,000 and you qualify for $30,000 subsidy your mortgage would be on $120,000. In addition, these are EcoBuild homes that reduce your monthly utilities by nearly 30%. Let me know if I can do anything else to help you with and by the way downtown Memphis real estate is still in possitive appreciation in 2008, not to be said for other areas of Memphis.

Jason Durston
0 votes Thank Flag Link Tue Jan 27, 2009
Kelly, I hope you have read all of these answers, very important points, Have you considered the credit repair classes ,they can really help set you straight! , I have a couple that have taken the courses, and after 6 months they are ready to purchase, with these rates out in Bartlett, tn. Great homes, great neighborhood !
Wish you all the luck- it is really possible - The American Dream ! Remember the tax credit for first time home buyers is only going to last till June, 09!
Take Care,
Web Reference: http://www.PattyEveritt.com
0 votes Thank Flag Link Sat Jan 24, 2009
Kelly, You are going to make the final decison on how you continue your home search, but for what it's worth I thought I'd toss this into the mix.
http://www.bhgrealestate.com/Views/Look/Default.aspx ...This site uses the county public records and shows housing trends, crime statistics, schools ect..you can break it into neighbor hoods. It good for comparing with other information.
http://www.trulia.com/home_prices/Tennessee/Memphis-heat_map/ ...I'd use this interactive map for more comparables, prices, sales, location ect..It's from trulia and is fun to use and has a lot of info.

I'd keep checking sites like these... http://www.countrywide.com/purchase/f_reo.asp .....REO info

http://www.mortgagenewsdaily.com/wiki/REO_Database_List.asp ...look thru the bank sites for REO info in the area you are interested in.

http://www.hud.gov/homes/index.cfm ...To get info and see hud homes in your area...

Cruise thru and take a look at current gov. programs, see if any might work for you.

http://www.ofheo.gov/PublicInformation.aspx?Nav=136 ..there is a ton of info on mortgages, predatory lending, fraud alerts, banking and lender info ect.. Great place to find a lot of information.

http://www.homesales.gov/homesales/mainAction.do ...I'd check this out..

These are all things you can do as you work on your credit and become informed about the market where you wish to purchase. Becoming informed will allow you and those you choose to work with to find what will work to attain your goals. Spending time now making sure you are informed will save you money and make it more likely that you will find what you want.

Last links...http://www.fhfa.gov/ ...check here once in a while and this is just general info on mortgage rates..

You, IMHO, will be much happier in the future if you take the time now to prepare for making a huge financial committment. Good luck, Dunes
0 votes Thank Flag Link Fri Jan 23, 2009
Hi Kelly,

I've had wonderful success helping buyers get into lease purchases recently, and know of several available in 38119. Check out my profile, and if I seem like a good fit for you, send me an email to jennifercarstensen2008@yahoo.com.

I would love to help!
0 votes Thank Flag Link Fri Jan 23, 2009
I'm sure you must be getting lots of hits on this but if nothing pans out in your favor I would love the opportunity to work with you and your family. I and my wife are investors. We buy property in the Memphis area that is in need of repair and fix it up to rent or sell. Give me a call and lets see if my wife and I can find something that you would like. We have about 14 that we are looking at in various parts of town.
0 votes Thank Flag Link Wed Jan 21, 2009
Hi Kelly,

There is some good advise below - owner financing (all or seller taking back a second), getting a loan maybe at a higher rate, then buying it down (points are totally tax deductable) through seller's contribution and so forth.

Lease purchase sometimes works - most of the time they don't. The deposits are generally non refundable if you do not buy the house within a certain period of time. If it is a seller unable to sell in this market - more than likely their interest rate will be more than market right now - meaning you will be paying a premium. Most investors always try to get 25% over mortgages as their "rent range". Also, you will not get any tax breaks or deductions until you actually close on the property. Maintenance will totally be your responsibility also when you lease/purchase.

There are options out there that will allow you to purchase - find yourself a deal maker - one who knows how to structure a deal. Be totally honest so that Realtor can help you and put you with the lender that can help.

It is when you have no money, shotty credit, and no job - that 's when even a wizard couldn't help you out on!!
0 votes Thank Flag Link Wed Jan 21, 2009

There are a number of mortgage products on the market some require higher credit score than others. The only way to know for sure is contact a local loan officer see if you can qualify for a mortgage at a price that fits your budget. There are also a number of lease/purchase properties avaialble but most of them will require some degree of qualification. We offer a program that can examine your credit score and provide you a "game plan" to bring your score up to a level so you can be approved for a home you can afford.

I am both a Loan Officer and a Realtor in the Memphis area. If I can provide assistance please let me know .

Gerald Williams
Affiliate Broker
Mortgage Loan Officer
BenchMark Realtors, LLC
BenchMark Mortgage, LLC
0 votes Thank Flag Link Tue Jan 20, 2009
Hi Kelly, I'm very familiar with lease/purchases, as I've done many over the years. They DO work. If you are a first time home buyer, you also qualify for $7500 credit for a home. Most lease/purchase sellers do require at least a 5% non-refundable deposit which also applies toward the purchase price of your home, but non-refundable if you do not close in the allotted period of time. A lease/purchase is a purchase with a delayed closing. It's very possible to find a lease/purchase in this market, but we must make sure you really love the home well enough to close on it before you enter into this kind of contract. Also keep in mind, some sellers will actually give you a credit of a small portion of the rent each month to apply toward the purchase price or your final closing expense. These are negotiable items.

Feel free to get in touch with me by email or telephone to get more detailed information.

Connie Robertson
Principal Broker
Direct: 901-550-2249
Keller Williams Realty
3860 Forest Hill Irene Rd. Suite 105
Office: 901-221-5100
Fax: 901-221-5199
Email: connie@connierobertson.com
0 votes Thank Flag Link Tue Jan 20, 2009
I would speak to a mortgage broker and see what you could possible qualify for. There are several loans out there, and credit score is only one of several factors considered.

I am a mortgage broker. If I can be of service, please let me know!

Martin Smith

Precision Funding
877-238-6324 Ext 704
877-238-6324 FAX
0 votes Thank Flag Link Tue Jan 20, 2009
It sounds like things are really coming together for you and your family, that is great. It is also a great time to to be a home buyer. 38119 is an area that is highly sought after, that means you might be hard pressed to find 2000 sq ft for 130.00 per month. I can put you in touch with a local credit repair company that is legit and has great success, it might better to get your credit fixed asap than to get into a lease purchase. You will find that a lease purchase might not be the DEAL you are looking for. Many times lease purchase homes are owned by investors and they are looking to make money not give out deals. Let me know if we can help.
0 votes Thank Flag Link Tue Jan 20, 2009
Kelly, I would be happy to put you in touch with a local mortgage person would can help you assess your financial status, and how to fix your credit, if necessary, so that you can qualify for a FHA or conforming mortgage. That is the most stable financing option. Just a word of advice: many who think they have bad credit don't bother to check with a mortgage person from a reputable financial institution. they are the most likely folks to fall prey to schemes and predatory lending. See a professional!
Contact me, or visit my site for loan officer recommendations.
Web Reference: http://spake.com/buyers.htm
0 votes Thank Flag Link Tue Jan 20, 2009
Hi Kelly: Congratulations on the new baby, now let me offer some help you with your credit so can take advantage of the AMAZING deals and get your new family settled.......

Please visit the following links which will provide credit restoration tips, advice and useful info to point you in the right direction.

Proof that Credit Repair Works:http://wisconsinloantips.com/7creditrepair.htm
Tested and Proved Strategies: http://wisconsinloantips.com/better-credit-record.htm
Little Kown Secrets to Increasing Your Credit Score: http://wisconsinloantips.com/threequicktipsforrepairingcredit.htm

Best of Luck to you and please feel free to contact me if I may be of assistance in your credit restoration process -
0 votes Thank Flag Link Tue Jan 20, 2009
Don't forget about the option of owner financing. Many sellers are in a position of offering owner financing to buyers they qualify, eliminating the need for the bank's approval. Sellers may be more willing to look on a more personal level and help you work on your credit scores rather than just write you off at the beginning. Ask sellers of homes you like to consider this option.
Web Reference: http://www.chadmustin.com
0 votes Thank Flag Link Tue Jan 20, 2009
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