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You have extremely limited options especially with a credit score that low. But not to worry, there's always an option out there. For one, you should look into doing a lease/purchase option. Find a real estate investor in your area (you might want to check www.craigslist.com for starters) that does lease options. A lease option is where you lease a house, typically for a year, with a portion of your monthly payment going towards the purchase price of the house or sometimes even the down payment. You'll then have 12 months to improve your credit, build up your cash reserves,create more job stability (lenders look for at least 24 months in the same line of work) and to find a lender that'll loan you the money to purchase the house that you are leasing. If you can't find a real estate investor that'll do that, try talking to the seller of a house you'd like to buy and see if they'll consider a lease/purchase option. Easier said than done, but it's an alternative! Just make sure you do some research on your own on lease/purchase options, and the laws of the state that you buy in. Good Luck! BTW - If you haven't found a house and financing, you might as well forget about the $8k FTHB tax credit - you won't make the 11/30/09 deadline. Don't despair though, congress will more than likely pass something similar in the near future.....if they're smart!!!

by Michael

1 month ago

Asker's Rating: 

suspended license,,,credit issues....you will never get a loan until you get your act together...

by Mar C- 1 month ago

Your ONLY hope is to get a co-signer and have a 20% down payment. Your credit might make it near impossible as the only people getting mortgages these days are those with a proven track record of financial responsibility. Having a home is a privilege, not a right! Lastly, if you have not started the financing as of yet, it will be almost IMPOSSIBLE to close on your new house by 11/30/09. Most escrows alone are 30 days. You might be SOL on the $8k.

by Ryan M- 1 month ago

sorry to tell you joe but theres no way you can unless you were to pay for the home in cash. even to do a manual underwrite on an fha loan you need at least a 580. that and theres no way you'd close on a hud home by nov 1st if you havent even started the process....

by I gotz that wicked clown love- 1 month ago

It will be almost impossible at your age. I think the only way you are going to be able to do it is if you get someone with good credit to co-sign.

by Tech_rich- 1 month ago

Given that it is now October 26 and you obviously have not started the paper work for a mortgage nor made an offer, you are probably out of luck on the tax credit unless Congress extends the credit - figure that it will take 45 days to go to closing (if not more)...that puts you into the second week of December...too late to get the credit. You will also need to bring at least $7,000 in cash to the table assuming you can even qualify for an FHA loan which requires 3.5% down at a minimum and then about 5% in closing costs. Unless your credit has been squeaky clean for the past two years, you will not qualify with that score. Your best bet is to spend the next 2 years cleaning up your credit and raising your score and saving for a good down payment (as mentioned, figure 20% down and another 5% for closing).

by Steve D- 1 month ago

You need to get a copy of your credit report. Then pay off any judgments or other unpaid debts. Check for incorrect reporting and resolve them too. That will improve your score but you will still need to match the government incentive to get a HUD home before the end of this year. Sell anything you don't absolutely need if you are short on the cash. Expect it to take several months to complete the credit clean up so you may lose this house. But, don't give up. Save the money and find another house while you complete the clean up. You may want to contact a credit counseling service to assist with the clean up if you are unsure of how to read a credit report. Some of your bad credit may be able to be removed by a paid credit service but that usually takes as long as six months or more. Even then you will still be able to get a house because you will save the money for your own down payment and your credit score will be better. If all else fails talk to some realtors. They may be able to find an owner who will carry the loan for a year. Then you can take over. It may take time but there is always a way if you don't give up and you pay better attention to your credit now that you see how important it is. Good luck!

by Lloyd G- 1 month ago

With that credit score, there's no way unless you have cash. Even if you could qualify for a mortgage, you'd never be able to close on the house in time to get the $8K tax credit whiih expires 11/30/09. It takes 45-60 days from the time your purchase offer is accepted.

by jlf- 1 month ago

You will not get a mortgage with a score of 551 Even FHA requires a 620 score. This is the price you pay for screwing up your credit. Now, you don't get the rewards those who kept their bills paid get.

by My Take on It- 1 month ago

Sorry Joe that is not going to happen, and unless they extend it, you are way to late for the 8K tax rebate. Lets not forget with the mortgage also comes taxes, insurance and upkeep. You do not mention your income and other bills which would also affect how much of a home even with a good credit score you could be eligible for. Best bet right now is to take a year or two and clean up your credit, and save some money for things like downpayment, closing costs, 1s years insurance, appraisal, home inspection etc. My guess is you are hoping for 100% financing including closing etc, sorry even with good credit those days are gone.

by Pengy- 1 month ago