home equity lines of credit
Question
What home buying options do I have with bad credit and no money?
My fiance and I found the perfect house, in a perfect area, with the perfect price. It's spacious, which is great, since we have two kids and three dogs (one is a Dane). The house is 82k. My fiance makes 50k/year. I make whatever comes my way doing web design. Our credit scores are in the low 500's. We have no money saved up (this kind of showed up outta the blue). We go see the inside on Monday, and I already know I want this house. We can't get a bank loan, besides our credit, because the house is deemed unlivable. It has no heat (yet) and there is some electricity and carpentry that needs to be done. I have a handy family, so, to me, it doesn't sound like a big deal. However, I don't know on what grounds they are deeming it unlivable. If we go Monday, and it's a wreck upstairs (the downstairs is fine, from what we could see through the windows), we'll say no. If it is something my family can fix, then we'll say heck yeah! I'll live downstairs until the upstairs is done, for all I care. Now, here's the big problem. Like I said, crap credit and no money. My dad can't help, he has his own house and father to care for, my mother has no job, but has pristine credit. My step father has great credit and gets paid a good bit, but he owns three houses, and I was told lenders looked down on that. If we like the house, we're going to talk to my future mother in law's real estate agent. She has crap credit too, but bought her 90k house with no money down. I hate to sit idle, though. I need to know if there is something we can do. I looked at hard money lenders, home equity loans, and home equity lines of credit. I'm buying an ebook tomorrow that gives me access to sub-prime lenders. Is there anything else I can do? Any realty agents on here that might know? We have never gone bankrupt or foreclosed, will I need a Letter of Explanation? If we can't get this house, then we'll build our credit and money for two years and get a manufactured home. We'll put it right in the utopia town we found. But for now, if there is something we can do, I want to do it. I'm not giving up just because I made some stupid mistakes when I was 18. Thank you to everyone who replies to this! Oh, and thanks for reading all that, it was a lot, ha ha! And I hate that freakin spell checker... It's as bad as that paper clip on Microsoft Word... One more thing, we would like to be able to get a loan in addition to the mortgage to fix up the house and put a furnace in... or a wood stove. Wow, awesome responses so far, thanks all. Apparently my score is in the higher 500's. Unfortunately, it's still bad, plus I'm not technically employed. It's my fiance's score that really matters, I think. We also have a car loan that's all paid on time, so I hope that looks good. Mrswearing- the furniture idea's a great one. I like buying stuff too haha. I think I'll try that. Sylvia- you definitely made me feel inspired! I'll check up on that info! Kemperk- well, what happened was I turned 18 and got cell phone plans and whatnot... I also don't like having a boss, so I couldn't keep a job. That's why I work for myself ;) Members of my family build houses, so depending on what needs to be done, I should be good there. Thanks again everyone! Turns out, I have options. FHA can approve the loan if we give them 5% down. That money can come from a relative, as well, as a "gift". Now all we need to do is see the house to see if it's worth it. Thanks ;) Oh and to the first person who responded, Sub-prime lenders do still exist, there just aren't many of them. That ebook was worth the 17 bucks. Lol, I'm not that poor.
5 months ago - 6 answers
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My boyfriend just bought a house, and while he doesn't have bad credit, he didn't have any money saved up. He went through a first-time home buyer's mortgage company and didn't have to pay a cent down. He started making his mortgages payments a month after he got the key and everything is perfect, got great interest rates, etc. As far as a second loan for heat and stuff, i doubt you can get one and if you do the interest might be insane. A lot of mortgage companies will finance in certain things like new windows and a heat pump. They offered us new windows but we're paying for it separate. Also, you will get the first time home buyers credit from the IRS if you havent bought a home in the past 3 years. It's 10% of the loan amount up to $8,000. So for an $80,000 house you can get $8,000 from the IRS and not have to pay it back-at all. So check into that too. Also, if the house is in too bad of shape, you might not get an insurance company to accept you...this is something to think about because even though your offer might be accepted, you might not get things lined up in time to actually buy the house before the contract ends so there are so many things that can go wrong--just be prepared.
Source(s)
Looked at over 100 houses and had contracts on 2 that went south until we finally got the one that was worth the wait.
by Sylvia H
5 months ago
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Other Answers
With credit in the low 500's, and no money for a down payment, you might as well save the gas money and not bother to go look at the home. And if you've been paying any attention, you know that sub-prime lenders are out of the picture - so save your money on the ebook too. To get a mortgage today you need both good credit AND a down payment. Home equity loans and home equity lines of credit require that you have.... home equity. That means you own a home that's worth more than you owe on it.
by Judy- 5 months ago
I don't want to advise doing this but you can piggy back onto your grandfathers credit or brother or whatever. there are also credit repair services out there that will raise your credit score for you for a fee. now I highly disagree with piggy backing because frankly it's cheating the system. so what you do is have someone with great credit co-sign onto something small like some funiture for your new house. pay off the stuff quick and I mean within about 3 or 4 months. now if you don't have that amount of time you can also go into a sub prime credit market then refinance out once you have some credit established. thats what I did and my credit score is great. be advised if you do the piggy back option make sure the person you are piggy backing with has nothing bad on thier report.
by mrswearing- 5 months ago
what you want and what you can logically get NOW are two different things. I will do this for you, for free, I will help you determine why your credit score is so low and how to get it up into the 750's and how to put aside 25k for a down payment. otherwise, the best you can do is a lease-purchase. [don't forget the house needs a lot of work......who will do that?] i am thinking you either have lots of old medical bills or someone gambles or drinks and smokes a lot...... since you would never buy a home while using pills.......................
by kemperk- 5 months ago
Working for yourself is not a big deal, they will use your tax returns as proof of income. Your issue is your credit, you two will have to start paying on your debts, on time, before any bank will touch you. You would not even qualify with a co-signer in your present situation. Do not waste the agents time with the house. That is very unkind, there is no possible way you could purchase it.
by Landlord- 5 months ago
none
by Doctor Deth- 5 months ago