Need a home loan with fair credit…?
Me and my fiance are getting married on May 10 and we want to purchase a home. We found a PERFECT home for us in our town that has been appraised at ,000 and is being sold for ,000 (please keep in mind we live in a small rural town where the median price for a home is ,000.) The home was a foreclosure that is currently owned by a couple that "flips" houses. My credit is 540 and his is 550. Up until a year ago his was perfect but he went through a divorce. My credit is bad because of bad checks that were written out. Im getting my taxes back in a week and will finally be able to pay off everything negative that is on my credit report. We were told that there is no way that we will be able to get a home loan bc of our credit, but i still think there is something that can be done. Ive never owned a home and he has previously owned two-one that burned in a house fire and one that is ex is currently living in. Is there anything that can be done, or where is a good place to begin...
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If you can get an FHA loan, maybe, but I doubt it because you probably have collections and chargeoffs, otherwise, not to be harsh, but you need to get your finances in order, and pay your bills, and get some money into savings.
Then you need to develop your credit. There are plenty of major credit card companies that offer secured credit cards, and you can develop it that way. Use them for gas and groceries, then pay them off at the end of the month. It will take you about 2 years to get things back in order.
with those scores – you’ll probably need 20% down payment to get a mortgage right now, plus more cash for closing costs
Talk with a local lender or a bank and see what they say, after you take care of past debit with your tax return. If they don’t have good news on a loan then you can try and see if the current owners are willing to do a lease purchase for a few years to get your credit scores up. If they are willing to do this you and your fiance should not incur any more debit and pay on your past debit to clean it up.These are just a couple of options. But the best option is to clean up your credit and look to buy a home once your current and past credit has been taken care of.
Jess, your only option is to work on repairing your credit history and improving your credit score. With todays mortgage woe’s no one is going to loan you money.