Thread: Thinking about buying I have questions

You may be able to qualify for FHA; otherwise if there is sufficient equity in the deal you may find a hard money lender that would finance it for a year or two after which you could get traditional financing if your credit has improved. The best bet may be to but the property from the seller on a contract for deed.

Ask to owner to buy it subject to the existing mortgage. No banks involved, saving mortgage fees and to avoid the due on sale clause, make a lease contract and ask for a quick claim. Then refi in a year or so with better credit...

Thanks so much for your post! In today's real estate market, it could be tough to get a loan in this type of situation. We recommend to our buyers in Minnesota in similar situations to go ahead and contact a credit repair specialist. He or she can get you in position to purchase a home for sale down the road. You will be able to get a better interest rate on the home when your credit has improved as well.

With so many homes for sale on the MLS, there are countless choices now and there will continue to be great deals out there even 1-2 years from now. I hope this helps.

I would say to at least talk to a lender. It will cost nothing and they will tell youwhat you must address.

I am not sure about a credit repair specialist. I would check and double check them before signing anything, I have heard there are some really great credit repair people and there are some scam artisits also. It is a shame someone would prey on people trying to do the right thing and improve their credit but they are out there.

A lender may be able to advise what loans you could qualify for such as USDA, or other programs that are more unique to your area.

I'm no mortgage originator nor am I a real estate agent, but I do work in a real estate office and my mom is a mortgage originator, so I'm just repeating what I've heard.

While your credit may be bad, there might be a way to spin it so you can get the house for now. My mom has had clients that applied for a home loan with their credit the way it was, and then suddenly went out on a huge credit-fixing spree.. Because they paid all their debts off and what not, it showed up on the credit borough that those collection accounts were now active, and brought their score down.. Even though they paid off the account.. and then weren't allowed to buy a house because they went out and did the right thing of paying off their debts.

I agree with the 'just go and talk to them, it's free' idea because most mortgage originators will do a lot to help you in this market if they think they'll get a deal off of it.

Sorry if this was confusing or didn't help!

If all else fails see if the owner would do a lease option to give you time to improve your credit and save for a DP. See my blog link below to get more info on Lease Options.
Good luck,
donrock

In order to purchase the property confidence is the key. They key to real estate is when you buy not when you sell. Make sure your getting a good deal way below market value. If the house will pay for itself the bank will not care. Dress nice when going to the bank. Develop a relationship with the bankers.

The bank will want a termite inspection and 20% down at least. You will also need consider insurance and and good credit.

What else?

Keep on going though. Do not let any obstacle stop you.

To Ascension Success,

-TLS