1st Time Home Buyer

[kaynamarie1]

My husband and I would like to purchase our 1st home. I have been at my place of employment for 12yrs and over the past 3 to 4 years my husband  has either been employed or on unemployment because of the housing market. Currenlty we make about 60k together and have no savings but do have a 401k.

We have a car payment at $300 and our total credit card payments are $308 a month, we are going thru credit counseling and have been w/ the for 4 yrs and will have the credit cards paid off by April of 2010. Our credit scores are in the low 700's and I also do have a judgment and collections on my credit report from 2003 when son was in the hospital. Should we wait a little longer to be try and pre-qualify?? I would like to take advantage of the $8000 tax credit. Any info would be helpful

[Anonymous]

Has your husband been employed for the past two years? (or if there was a break, was it short?) That would be the first thing that might be an issue.

FHA requires 3.5% minimum downpayment. You can negotiate so that the seller pays your closing costs.

If you are in an area that qualifies for USDA RD financing, you can buy with no money down.

Your credit scores are high enough to qualify for either program and higher scores wouldn't change the interest rate.

If you think you can accumulate the downpayment or find a house in an area that qualifies for USDA,  I don't see any benefit to waiting. With real estate values down, interest rates at their lowest point in decades and the tax credit besides, this is a great time to buy.