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I would love to own a home

I am * 29 year old female. Looking to purchase my first new home. I have horrible crdit but nothing major on my credit besides student loans. I don't know what to do. Where to go or who to talk to. I don't want a high mortgage cause I don't want to default. Any advice

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Anonymous

Asked by Anonymous at 1:29 PM on Jul. 6, 2009 in Money & Work

Answers (8)
  • well just so you know, your credit score goes mostly on the last six months and how often you pay on time. Student loans they do consider to be MAJOR because they are federal loans...
    Anonymous

    Answer by Anonymous at 1:31 PM on Jul. 6, 2009

  • One othr thing, why dont you look into foreclosed homes in your area because they are lots cheaper... or look for something that is rent to own
    Anonymous

    Answer by Anonymous at 1:32 PM on Jul. 6, 2009

  • Go to your local banks and see what they can offer you. It is important to go local when getting a home loan, and it is important to shop around.
    CarolynBarnett

    Answer by CarolynBarnett at 1:32 PM on Jul. 6, 2009

  • Go to a real estate agent. They'll help you with applying for loans and they'll let you know what you're able to do. They can also tell you what you need to take care of on your credit to become more eligible. Good luck! :)
    StefanieN84

    Answer by StefanieN84 at 1:38 PM on Jul. 6, 2009

  • And don't settle for anything unless you really love it, even if it takes a little bit longer to buy! If you aren't happy with it in a few years, and want to sell, it may be difficult, especially if the way the real estate is now stays for awhile! Take your time!
    Anonymous

    Answer by Anonymous at 1:45 PM on Jul. 6, 2009

  • What made your credit so horrible? If you've defaulted on anything or been late with any payments, you're less likely to get a loan with reasonable interest rates. Also, do you have any money to put down? If your credit is as horrible as you say, then you'll probably be required to put down the full 20%.

    I would not go to a bank-- as their financing programs and guidelines are very conservative. Instead, I would look into a credit union or a mortgage broker. A mortgage broker will generally "shop" the programs to find one that is best suited for you.

    Student loans do not count against you as most other loans-- I have $120K in student loans and still bought a house, but I have great credit, I have owned property before, and I had 20% to put down. What they look at is consistency, debt/income ratio, and whether you're income potential is slated to increase.

    Good luck!
    Busimommi

    Answer by Busimommi at 1:46 PM on Jul. 6, 2009

  • We're most likely going through homestead-homes next year. They help guide you through getting construction loans and down payments under $2K. They help with the supplies and you act as the GC. You can do whatever work your capable of. Painting, etc. That saves you money. After the house is built you take the money you saved and that's considered your down payment toward your home. They also help with not so great credit. You'll have to check the site to see if it's available in your state. I think it's a great way to start.
    tcarter1981

    Answer by tcarter1981 at 5:02 PM on Jul. 6, 2009

  • Get pre-approved for a morgage BEFORE you start to look. This way you aren't going to look at houses that cost $10,000 more than you can even get a loan for... We are trying to be pre-approved now, but my DH has NO credit score at all and $1200 in debt. They told us that if we had bad credit and debt they could work with us or if we had no credit and no debt... But no credit and debt was a big NO NO...
    SabrinaMBowen

    Answer by SabrinaMBowen at 6:26 PM on Jul. 6, 2009

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