Since your monthly payment would be building Equity... I would always recommend Buying over Renting if it is at all possible.
Loan guidelines are tightening up... but with the large downpayment you mentioned, there may be the possibility of getting you approved. Or there is also the option... if you were able to pay off the collections... To get an FHA loan for only 3% down.
I would be happy to put you in touch with a Loan Officer who also does FHA... to discuss all of your financing options. She has helped other Clients of mine when other lenders had turned them down. I think it would be at least worth a shot... to try and get approved before you decide to continue renting.
If you do get approved... I would be happy to help you find an ideal home as your Buyer's Agent at NO cost to you. Anyways give me a call (702)351-9863 or you can instacall me from my website below...
Best of luck!!!
It may a number of months to accomplish clearing your credit and getting those scores up a bit. But right now we are experiencing the best buyer's market we have had in a long time and it would be a shame to miss that window. And just recently in the lower priced single family homes, we are starting to see multiple offers again. This indicates that our market is definitely correcting itself.
Perhaps you might consider a lease purchase. There are many vacant homes on the market and there are enough owners that are desperate enough to sell that they will consider a buyer with viable option money which you actually have. You won't be able to consider any of the foreclosure properties or short sales on the market, but quite a few owners are now priced to the foreclosures to get their property sold. We may be able to find you a good deal on a home you like to take advantage of the market conditions now and give you time to get financing.
But before that we have to make sure we can get those credit scores up in a reasonable time! Give me a call at 702-596-7821 and I can not only get you with a lender that can help clear your credit, but I can also discuss the ramifications of doing a lease purchase.
You can't predict the future, but as the upcoming hiring boom happens there is a possibility rents and home prices will begin to creep upwards. It's something to consider and worth your time to explore all your options. I can put you in touch with the loan officers in my office if you'd like. In my experience with them they've been very helpful and straight up about what can or can't be done. Whoever you decide to use there's no cost or obligation to have them run it and you owe it to yourself to have a clear cut answer.
When you say "talked" and "hear", I'm assuming they didn't actually run your credit, or else you would already have your answer.
I would agree that you should find out exactly where you stand. A good mortgage broker can even let you know if there is any way to improve your credit score. At the very least, just improving that may save you money in the long run even if you do continue to rent, and for all your other credit purchases.