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betty1508 · Apr 12, 2009, 07:54 PM

Hello, I am really interested in buying a home. I have never owned a home. My credit is not good, I am currently working on fixing that. My savings is gone, so I have nothing to put down. My husband and I both work and have a decent income between the 2 of us and we feel we pay entirely too much $ in rent. We feel the $ we are paying in rent we are actually paying someone else's mortgage. Can someone let me know whether with my situation, buying a home at this time is even possible or am I stuck paying someone else's mortgage.

LisaB4657 · Apr 12, 2009, 07:59 PM

The days of buying a home with no money down and bad credit are over. You're going to have to save up some money for a down payment and you're going to have to improve your credit score if you want to own instead of renting.

HelpinHere · Apr 12, 2009, 08:13 PM

I'm not sure about you specifically, but I know in MY area, you can get away with this.

There are literally 100's of empty homes in my city, and the realtors cannot wait to get rid of them.
However, they still won't let them go easily. You must pay high interest rates, and usually must start on a 30+ year mortgage.
If you can, shop around realtors for a small house that won't burn you too much for interest.
If you find one, with your monthly (or quartly, or w/e) payments, pay your ammount+interest, then pay the amount again (if you can afford it). That way, your loan will be paid off twice as fast, and only build up half as much interest. You can't always do this (money is tight), but it GREATLY helps with your mortgage when you can.
If you can find one, you may be able to find a private seller instead of a realtor business, and work something out with them instead.

Good Luck!

Xyzpdq0121 · Apr 12, 2009, 09:46 PM

^^ well, considering your Realtor has NOTHING to do with what interest rate you get or if you qualify for a home... There is not much finding a good Realtor will do for you!

When you have at least 3% to put down on a home and a credit score of at least 640, you can start checking into FHA loans. Up until then, you are stuck renting!! Like Lisa said, the days of no money down and bad credit loans are well and over! Banks, in my experience, are looking for reasons to not make loans and you just gave them two. I know it is not what you want to hear, but it is the unfortunate truth!

HelpinHere · Apr 12, 2009, 10:01 PM

Originally Posted by Xyzpdq0121

^^ well, considering your Realtor has NOTHING to do with what interest rate you get or if you qualify for a home... There is not much finding a good Realtor will do for you!

Oops...
Well, I meant Real Estate Company (ReMax, Coldwell Banker, etc.)
They don't control YOUR credit score, but do hold some leverage and can pull some strings if need be.
When buying a house, much like a new car, if they are interested in you, they will compete with better offers to get your business...

Thanks for catching that stupid mistake, :P

nikosmom · Apr 12, 2009, 10:12 PM

Helpinhere: the Realtor/ Real Estate company has no bearing on what interest rate a buyer qualifies for. A loan officer can shop around on the interest rates but given the OP's situation, she needs to take some vital steps first. The realtor is a sales person. Period. They get a commission if you purchase but have nothing to do with the financial aspect.

To the OP, you need to work on cleaning up your credit. Pay off some of the small debts first and then start chipping away at the larger ones. Don't open any new credit accounts (charge cards, vehicle loans, etc).

You will need to save up some money for a downpayment. Given the banking crisis, banks are more conservative with loan approvals and your situation falls into the "high risk" category. Many loan programs also require completely a clean credit report to qualify.

So yes, in the meantime you are stuck paying someone else's mortgage.

Xyzpdq0121 · Apr 12, 2009, 10:15 PM

Originally Posted by ;

Oops...
Well, I meant Real Estate Company (ReMax, Coldwell Banker, etc.)
They don't control YOUR credit score, but do hold some leverage and can pull some strings if need be.
When buying a house, much like a new car, if they are interested in you, they will compete with better offers to get your business...

Thanks for catching that stupid mistake, :P

^^^ Ummm it is still a mistake... "Well, I meant Real Estate Company (ReMax, Coldwell Banker, etc.)" yes those are Realtors (or to be more correct, brokers) But, you state that Realtors are trying to get rid of home (true) "but THEY they still won't let them go easily. You must pay high interest rates, and usually must start on a 30+ year mortgage." THEY have nothing to do with your loan. Not one little bit. A Realtor will sell a home to ANYONE who can get financing, they do not care... But Realtors do not control the financing!

They also hold NO leverage with your credit score what so ever. For that matter, your LENDER does not hold any leverage with your credit score. Any one who tries to sell you on something different is scamming you!! Now, a lender can pull your credit, tell you how to write letters to the credit companies and how to make small impacts in your credit but a) they can not do it for you and b) it is something that you can do yourself without them and c) will not make that much difference.

Bottom line, for a no credit and no down payment loan (or any loan) your Realtor has NOTHING to do with the process, you need a lender. (And by law, a lender and Realtor can not be the same person) Still even more bottom line, there is no one out there making sub 640 credit score loans with no money down. Just not happening!

realtor1 · Oct 3, 2010, 08:13 AM

NO money No credit/Bad credit=No House