Hi,

My husband and I both have really bad credit. I mean credit scores around 530!We have paid off alot of credit cards in the last 6 months in an effort to get rid of our debt. We still have about alot debt to clean up. We have a couple credit cards that are over the limit and we have worked out a pymt plan with the credit companies with a lower interest rate to help pay it off faster. We are currently renting for $900, it has come time to sign the lease again, and we really want to put this money into something that we can call ours to start our family in! We can come up with about 3 to 4 thousand for a down payment. My parents have said they would co-sign to help us out. My question is would having my parents do that even help our situation? Or is this something that is truly out of our reach?
Thank you,
Heather

Where do you live ? You may also want to look into assumable loans/foreclosures as these have lower barriers to entry.

Also, I'd buy a book (avoid seminars as there is normally a product being peddled) that explains how to repair your credit score.

There are alot of little things you can do to pick up 30-40 points.

There are several options you may have. Rent to own, gift of equity, or a sizable down payment are ways to go. If you are in Pennsylvania, I can help you out. Do as much legwork as possible as far as learning the process and make sure the person you are dealing with presents you with a plethora of information regarding your particular situation. Don't let everyone and their brother pull credit, it can adversly affect your score. Good luck!!!

Jason Sardi
jsardi@fcegi.com
866-262-8720 ext. 229

I own a website that list properties for sale where the owners are offering Owner Financing and Lease Option terms. You didn’t mention what part of the country you are located in, but the homes on my site are located nationwide. Website address: http://www.ownerwillcarry.com/states.html


You also might want to post your needs at http://www.ownerwillcarry.com/community/
This area of the site is a “want ad area” frequented by investors who are looking for buyers. If you post what your need is, an investor can contact you directly if they have something that suits you. Hope this helps.


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I own a website that list properties for sale where the owners are offering Owner Financing and Lease Option terms. You didn’t mention what part of the country you are located in, but the homes on my site are located nationwide. Website address: http://www.ownerwillcarry.com/states.html

You also might want to post your needs at http://www.ownerwillcarry.com/community/
This area of the site is a “want ad area” frequented by investors who are looking for buyers. If you post what your need is, an investor can contact you directly if they have something that suits you. Hope this helps.

Hi, I'm new here, but with a FICO score much below 620, you are going to be looking at non-conforming and/or subprime lenders. That is, lenders who do not have to conform to federal guidelines and can help people with credit problems. In the case of the one I work for, there are a few specific guidelines that might be help make things easier. For example, we can grant loans to borrowers with a FICO score as low as 500. Also, we don't consider medical debts when considering your debt-to-income ratio; we ignore them completely, even if they have gone to collections. The rules are different for different non-conforming lenders, but one rule that extends to all lenders is that federal student loans can be deferred for two years for the purpose of qualifying for a home loan.

One question for you: is your problem one of debt-to-income ratio, or do you have delinquent debts that have gone to collections? The debt-to-income problem can be overcome by a lot of non-conforming lenders, but delinquent debts have to be erased before anyone can grant you a purchase loan.

Good luck.

Hi. I have a couple of questions for you. First, is the issue your debt-to-income ratio, or have these credit card debts become delinquent? Next, do you have any federal student loans? If so, these can be deferred for up to two years for the purpose of purchasing a home.

Also, you should know that there are several non-conforming lenders who can help you get a loan even if your FICO score is below 620. A non-conforming lender is one which lends its own money and is therefore not required to conform to federal guidelines for lending. Their fees can be higher, but they can help people who do not qualify for loans at traditional, conforming lenders. The one I work for will accept a FICO score as low as 500. In addition, we will disregard any medical debts, whether or not they have gone to collections. If you're in California, I can answer any specific questions you might have; otherwise, you should probably take a look at some non-conforming lenders in your area. If this is your first home, the quick build-up in equity will help you reduce your loan-to-value ratio on your next home and therefore qualify you for an even lower rate.

Good luck.

Hi. I have a couple of questions for you. First, is the issue your debt-to-income ratio, or have these credit card debts become delinquent? Next, do you have any federal student loans? If so, these can be deferred for up to two years for the purpose of purchasing a home.

Also, you should know that there are several non-conforming lenders who can help you get a loan even if your FICO score is below 620. A non-conforming lender is one which lends its own money and is therefore not required to conform to federal guidelines for lending. Their fees can be higher, but they can help people who do not qualify for loans at traditional, conforming lenders. The one I work for will accept a FICO score as low as 500. In addition, we will disregard any medical debts, whether or not they have gone to collections. If you're in California, I can answer any specific questions you might have; otherwise, you should probably take a look at some non-conforming lenders in your area. If this is your first home, the quick build-up in equity will help you reduce your loan-to-value ratio on your next home and therefore qualify you for an even lower rate.

Good luck.

Hi. I have a couple of questions for you. First, is the issue your debt-to-income ratio, or have these credit card debts become delinquent? Next, do you have any federal student loans? If so, these can be deferred for up to two years for the purpose of purchasing a home.

Also, you should know that there are several non-conforming lenders who can help you get a loan even if your FICO score is below 620. A non-conforming lender is one which lends its own money and is therefore not required to conform to federal guidelines for lending. Their fees can be higher, but they can help people who do not qualify for loans at traditional, conforming lenders. The one I work for will accept a FICO score as low as 500. In addition, we will disregard any medical debts, whether or not they have gone to collections. If you're in California, I can answer any specific questions you might have; otherwise, you should probably take a look at some non-conforming lenders in your area. If this is your first home, the quick build-up in equity will help you reduce your loan-to-value ratio on your next home and therefore qualify you for an even lower rate.

Good luck.

Mysuggestion is this:

Take the 3-4k and put it towards those credit cards, lowering the utilization and increasing your score.

Make all payments on time for 6 more moneth and then get into any number of great programs available.

Whatever you do , do not become hasty. If you have developed habits that are hurting your credit, continuing these habits will not help you. You may find a home that all together is 900 bucks a month.....but as soon as the toilet breaks or the roof leaks you will be back to a struggle again.

get yourself into the best situation possible and THEN obtain a loan. Forget about your down payment,there are plenty of gifting and grant programs avaialble that will take care of that.

Get your duck in a row, increase the score, and get a better house.

I suggest goign to www.ArtOfCredit.com and learnign ways to improve your scores and better your financial situation.

Good Luck!

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www.HonestMortgage.net

There are alot of little things you can do to pick up 30-40 points.

What kind of little things are you talking about?

If you parents are willing to co-sign that means they would have to be able to make the payments if you do not. Have them buy the property and you in turn could buy it from them on a contract for deed. During that time you can be working with a credit counseler to bring your credit scores up.