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What's the best way of getting into a new house while having zero credit???

Just barely starting out new with husband, and got a baby on the way in about 10 more weeks.


Asked by Anonymous at 2:34 AM on Apr. 6, 2009 in Money & Work

This question is closed.
Answers (5)
  • well if you really mean what you say about the zero credit then I am assuming you have no bad credit? and no credit is better then bad credit. First of all in these hard times homes are being sold very low and people are desperate. I don't know where you live but most places have a first time homebuyers program that will help you find a house and even lend you the money with 5 % of the loan down and you only have to pay them back IF and when you sell the home I believe It's 10 percent of the total home sales. But they will work with people with no credit...I have bad credit and they are accepting me. just look online at whatever town your in and type in the place and first time home buyers, something should pop up. Gl

    Answer by faithsMoM27 at 2:41 AM on Apr. 6, 2009

  • If you can lease with option to buy is a good way. When i was newly divorced i had no credit, worked online so my income was considered unverifiable. Because when i was married the bills and the mortgage where in my exs name therefore the 10 yrs we where married and i paid half the bills i was only building his credit.
    that is what i did searched till i found someone offering a rental with option to buy or lease with option to buy. Very pleased with the house the interest rate is not as low but still a good rate and we negotiated the terms of the contract together...i have bought 2 houses this way since then and i find it better than a bank and easier for me didnt even need downpayment just first and last months rent....toooooo perfect for a single parent or couple just starting out...or even for someone who wants to own again after a forclosure.

    Answer by theresamarie311 at 3:52 AM on Apr. 6, 2009

  • You can do it! What you need to do is go into a bunch of banks and explain your situation. You need to find a bank that underwrites their own mortgages. Usually it is going to be a small town bank. The big banks let a computer tell them who gets a mortgage based on credit scores and such. But a small bank, that underwrites their own loans will look at your overall history, they will look at your income and what bills you pay and write up a mortgage for you. Another option is to find a mortgage broker....this is an independent person that you will pay (usually about 2% of the mortgage) and they will find a mortgage for you. So they will know your situation and they have access to many many banks and can get one to do the mortgage for you. You will be able to talk to the mortgage broker over the phone to see if they can help you and they only get paid AFTER a mortgage is obtained (at closing).

    Answer by slw123 at 8:05 AM on Apr. 6, 2009

  • Along with all of the previous good advise, I would also create a good working family budget that proves not only to yourself, but to a loan officer the amount of the home you can afford. Most people go looking for a home thru the back door, meaning they find the house they want & then try to buy it regardless of the reality of the affordability.

    Add your entire income, & figure what 40-45% is of that amount. This amount would not only be the amount for the mortgage but also for the prop taxes and utilities. Any more than this would not allow for normal expenditures like groc, autos, auto repairs, insurance, clothing, savings, weekly running money, haircuts, makeup, baby items, medical & prescriptions, christmas, & fun things like a fun weekend, eating out, birthday gifts. Watch your friends and see who is enjoying life & loving their home, & those that are under stress b/c they can't afford their homes.

    Answer by lifeasinoit at 9:12 AM on Apr. 6, 2009

  • One of the most important criteria's the bank will look at is the stability of your income, like how long you have been at your job, is it verifiable, is it steady, etc. Don't try to include your income, b/c with babies coming along and small children in the home, women are the first to stop working b/c if a child gets sick, moms come home. If daycare becomes a prob, wife stops working.

    A moms income can supplement the income, but not be the basis for increasing debt.

    Answer by lifeasinoit at 9:15 AM on Apr. 6, 2009