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So this is a question my husband asked me to ask you ladies...

Can you tell me anything of first time buyer loans. Or loans for foreclosed homes. I'm assuming they go on your credit. Is it hard to get a loan? How good does your credit have to be? Anything you can tell me would be great. There are TONS of repo homes around here. Anywhere from $1000-$40,000 and we are paying $550 a month in rent so we are really hoping to maybe buy a home by next year. So yeah any knowledge on the subject would be great! Thank you!

 
LoViNmYbAbIeSs

Asked by LoViNmYbAbIeSs at 12:58 PM on Jun. 18, 2012 in Home & Garden

Level 27 (29,408 Credits)
This question is closed.
Answers (9)
  • If you have 20% to put down on a home,, more than likely you can get a loan,, now if you have terrible credit,, it would require more like 40%,, but if you can buy a foreclosed home they want $20,ooo for and it is worth say $100,000. you can still even with less than good credit get a loan if you have 20% down.
    If your credit is spotty there are people who are willing to "rent to own",, for example my girlfriend got married last year and moved in with her new hubby, in the meantime lost her job, house has been for sale for almost a year, her brother is assuming the payments for her, for her to sign over the house.
    kimigogo

    Answer by kimigogo at 1:07 PM on Jun. 18, 2012

  • My husband has been working for banks doing property preservation on the foreclosed homes for about 6 years now, and we bought one. There are a ton of foreclosed homes out there, and some are ridiculously cheap, but the loans can be hard to get and take forever to be approved for. Some aren't able to be financed at all because they couldn't pass inspections. For example, you usually can't finance a house that is stripped out, with no working electrical, etc. These homes have to be purchased as cash only. Most of the houses here are being scooped up by investors who are paying cash, so the average homeowner doesn't even get a crack at it. If you are able to make an offer, the banks will usually have more than one offer, and they won't tell you what the other offers are. This happened when we bought our house. They just said they had other offers, so each person was given one shot to offer their "highest and best".
    JulieJacobKyle

    Answer by JulieJacobKyle at 1:06 PM on Jun. 18, 2012

  • there are so many variables to buying a house. i'd check with the realtor and lender.
    meooma

    Answer by meooma at 2:20 PM on Jun. 18, 2012

  • Obviously the higher your credit score the better. You are allowed 1 free copy of your credit reports from ea. of the 3 credit reporting agencies. If you find errors on them, you can dispute them ahead of time. You need to be prepared to put a percentage down as a down payment. Shop around for lenders, & don't forget credit unions. Sometimes they're easier to deal with than big banks. It's a buyers' market right now so GL!! :)

    mrsmom110

    Answer by mrsmom110 at 1:02 PM on Jun. 18, 2012

  • My husband and I are just going through this process and let me tell you the very first thing you should look into, A CLASS for First Time Home-buyers! We took one this weekend (even though we're already at the point in the process that we are approved and ready to put an offer on a house) and it was amazing how much info you get! If not a class maybe look into a community resources program in your area that will help you figure out how much you can afford and lead you to the right places to get a home loan. We went through the USDA Rural Development office but if you live in the city that isn't an option. There are lots of other programs out there though to help first time buyers though! Good luck on your journey to becoming homeowners! :)
    DreainCO

    Answer by DreainCO at 1:05 PM on Jun. 18, 2012

  • Also, really sit down and figure out your expenses. Think about how much maintenance and utilities and taxes will be on a house you're interested in. Research the cost of repairs or upgrades you think the house needs. Find out how much insurance will be. Take that whole number and add 30%. It will ALWAYS cost more than you think.
    JulieJacobKyle

    Answer by JulieJacobKyle at 1:14 PM on Jun. 18, 2012

  • The easiest thing to do is to prequalify with a lender - then you can go from there.
    tasches

    Answer by tasches at 7:46 PM on Jun. 18, 2012

  • Credit needs to be good especially right now since so many banks got burned. If you have money for a down payment, even better.
    jeanclaudia

    Answer by jeanclaudia at 7:49 PM on Jun. 18, 2012

  • Right now you need good credit and yes anytime you get a loan it goes on your credit score. If you are interested in forclosed homes you may want to check with a lawyer that deals in that type of law. It is my understanding that they get those lists but I am not sure. I would imagine the realestate agents would as well but I have never had any luck dealing with them.
    Dardenella

    Answer by Dardenella at 8:10 PM on Jun. 24, 2012