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2 Bumps

Buying a House?

Can anyone give me any Feed back as to buy a home when your Credit is bad? My DH and I had our credit smashed by our ex's. Now that we are together we would like to buy a home. I have looked all over the internet and it is blowing my mind. Has any one been here? And my grandma is freaking out because she dose not want to see us with a 30 year mor. Thanks

 
Mrs.Elgert

Asked by Mrs.Elgert at 4:33 PM on Aug. 3, 2010 in Money & Work

Level 19 (7,187 Credits)
This question is closed.
Answers (16)
  • Your best bet is to sit tight, work on cleaning up the credit and give your scores time to jump to a decent rating. You can get access to all three credit reports free of charge at www.annualcreditreport.com...no payment, no trial - you are entitled to one free credit report from the 3 CR agencies once every 12 months. Make sure to examine each item and dispute any information that is incorrect. Also, letters of explanation are helpful to send to the CRA's so they will have on file when a creditor goes to pull your report. Lenders have become tougher byr law & given the circumstances that have gotten so many homeowners in a pickle. It's better to have all your ducks in a row- credit, downpayment and do your homework to make sure you are getting the best program that will be in your best interest in the long run. Also, research foreclosure lists at your bank - you might be able to save some cash and go that route. Good luck!
    luv2laaf

    Answer by luv2laaf at 5:29 PM on Aug. 3, 2010

  • You don't. If you even get accepted you will get a terrible rate and will wind up paying more than a reasonable person would be willing to pay. You need to rent until you get things cleaned up.
    tennisgal

    Answer by tennisgal at 4:38 PM on Aug. 3, 2010

  • I'm in the same situation but not because of exes, my boyfriend had some cars repoed, and as for me I don't really have any credit (it's hard to get any without already having it and I don't have a job) so we were denied for a $40k loan for a repoed home but maybe look into that, buying a repo home or look for a rent to own. We were basically told to work on getting the credit cleaned up, go to equifax, transunion and/or experian for your free credit reports it will tell you everything on there that is against you and on your credit, if you get all 3 you can compare and call to dispute anything that isn't YOURS and by that I don't mean things that were done when you were with your ex because anything that had your name on it with them is still yours but anything that could be from someone that has the same name. Other than paying off old debts I really don't know what else to do or tell you that you could do. Good luck!
    Tabatha42183

    Answer by Tabatha42183 at 4:38 PM on Aug. 3, 2010

  • Unless you have monoy for a down payment, typically 10 to 20 percent of the sales price of the home, then you need to look into going with an FHA loan. The internet is a good place to start but you are probably better off calling a reputable bank or mortgage broker who can get you good info and answer your questions. Even if you can't buy a house this minute they can help you plan to be in a position to buy a house down the road. Ask friends and family for a recommendation of someone trustworthy. A good loan officer will take the time to explain things and won't try to give you a hard sell. If you feel uncomfortable look for someone else.
    MaryMW

    Answer by MaryMW at 4:41 PM on Aug. 3, 2010

  • I do not know if the website at the end of my comment might be of help or not. It is the National Foundation for Credit Counseling. You will have to cut and paste into your browser. I have been told it is free counseling for those with credit issues. But you will have to verify it is free. It was recommended to us because we were considering filing bankruptcy. Good luck. http://www.nfcc.org/index.cfm
    elizabr

    Answer by elizabr at 4:42 PM on Aug. 3, 2010

  • You will have to pay a huge downpayment, or you may be eligible for an FHA loan. If you don't, your interest rate is likely to be very high. If you contact a realtor, and let them know the situation they may be able to help find a lender that will be fair with you. (With the housing market as bad as it is, I'm sure they'd be willing to help!) I'd be careful with any of the "counseling" programs out there, many charge a substantial fee for clearing up your credit - and they do the exact things you can do yourself with some research.
    Scuba

    Answer by Scuba at 4:46 PM on Aug. 3, 2010

  • Well, unless you have a substantial (and I mean HUGE) down payment, I honestly think it is gonna be a rough go. With the housing market devastated the mortgage lenders are not looking to give mortgages to individuals with less than favorable credit. The banks do not care of the circumstances ~ they only see the number. From what I have heard you need a credit score in the high range (and we are talking 700ish) and at least 10% down to get a decent rate. Then you have to consider the fact that in some places the value of current homes is still falling. My house is worth $10,000 less than I paid for it 17 YEARS AGO and is expected is drop another 10% before the market levels out. It is a big decision and I wish you the best....
    WoodWitch

    Answer by WoodWitch at 4:40 PM on Aug. 3, 2010

  • Some are being worked on as it is (Thank God DH is back to wrk again). Thanks for free credit report links. I went to one the other day that said it was free and then wanted a credit card #.
    Mrs.Elgert

    Comment by Mrs.Elgert (original poster) at 4:49 PM on Aug. 3, 2010

  • The one I sent is a counseling service, not a credit report link. Take care.
    elizabr

    Answer by elizabr at 4:54 PM on Aug. 3, 2010

  • You need to fix your credit first. Then you need to think about saving for the down payment .
    louise2

    Answer by louise2 at 5:03 PM on Aug. 3, 2010

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