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3 Bumps

Is it possible?

we would like to buy within the next 3-5 years. What are the steps for us to be able to buy a home by then. Do you have to be at your job for a certain amount of time? Our credit is in pretty bad shape. We have 3 little girls and wanted have more once we own a house. Any advice is helpful thanks.........

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ILYNAA

Asked by ILYNAA at 9:52 PM on Mar. 6, 2011 in Home & Garden

Level 7 (162 Credits)
Answers (5)
  • you can NOT have any judgements on your credit, you can not have a high debt ratio, you need to hold a job over a year and pretty much have to have at least a 700 credit score. it is not as easy as they say that it is to get a house loan. we have 6 figure salary and no debt and we even had some drama. save up you need almost 10% in some cases for a down payment
    jrevling

    Answer by jrevling at 10:00 PM on Mar. 6, 2011

  • Are u currently renting a place?
    Michigan-Mom74

    Answer by Michigan-Mom74 at 10:01 PM on Mar. 6, 2011

  • Here is one idea that maybe helpful. One option is to pursue what’s called an “Owner Financing” solution. This is probably the best deal you will be able to get. You want to look at a Lease-Option with owner financing, as this is the safest bet for both owner and buyer. This is one way you can easily buy house no down this economy. Here are a few examples why ths could be a good solution...
    1. When u r entering in the lease-option agreement with an owner, you are allowed the live in the home as if you actually own it. It’s practically “your home.”

    2. You sign an agreement with the owner of the property in which you rent the home for a period of time (usually a year or two) and as soon as you qualify for a home loan within the agreed time period, you buy the house at the originally negotiated price. You are basically “leasing” the home with an option to “buy” it.
    Michigan-Mom74

    Answer by Michigan-Mom74 at 10:15 PM on Mar. 6, 2011

  • This is actually a great arrangement since the owner overlooks your bad credit and you get a few years to fix it up and prove to the banks you will make a good loan candidate. You get to enjoy the following benefits: No dealing with landlords. You can treat the home as yours, meaning you can make whatever renovations you wish. As the home appreciates in value, you get to “cash in” on that increased equity when you buy the house. This is because you buy the house for the original negotiated price. Since house prices tend to increase with time, your house will likely be worth more than when you first “leased it.” Buy the house at the lowered price and all the equity is yours. You are essentially locking in the tomorrow’s market price today.The biggest advantage here is that you can get this deal signed with bad credit or even no credit. This is what me and my DH had to do, and we just closed, and the house is ours.

    Michigan-Mom74

    Answer by Michigan-Mom74 at 10:37 PM on Mar. 6, 2011

  • Thanks Michigan-mom74 your advice was the most helpful........ We will check out homes this way for our first home!!!
    ILYNAA

    Comment by ILYNAA (original poster) at 9:22 AM on Mar. 7, 2011

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