help . . .

[miz]

Does anyone know of any home mortgages for a score of 549???  We are in a real housing bind right now and cannot seem to find anywhere to go.  Renting will require us to squeeze our family of five into an EXTREMELY small home . . . and put a large portion of our belongings into storage, for who knows how long.  There are no decent homes for sale in this area, anyway, or they are out of our price range.  The house we are living in (NEEDS A LOT OF WORK), has no basement, but the landlord said he would allow us to put the rent payments we have made for the past two years towards the purchase of the home. It is not our "dream home" by any means, has no basement and is on an extremely busy intersection, but does have a nice large corner lot.  The furnace is 24 years old, carpet 25 years, windows 38 years old . . . so it does need somethings.  Any ideas? WOuld you cram your family into a smaller home for another six months or so to bump up the score and broaden our options???

[Anonymous]

Well unless you have a LARGE amount of $ to put down this may be your only option.
Be sure to take the amount of $ in repairs in consideration if you decide to purchase.

[miz]

Okay, but what lender will give me a loan at 549?

[Anonymous]

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@miz wrote:

Okay, but what lender will give me a loan at 549?

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You really have to get some number together for us to try to point you in the right direction.

So- I will give a hypothetical

Let's say the Home is worth 150K and you have been been paying 1300 a month for the last 2 years.

So now you have 30K down - but it needs 10K in repairs right?
SPlit the repairs- with the seller so now you have 25K down

So a 125K loan at 8% is doable with 20% down with many lenders as their risk has been reduced- make sense?

[Boswd]

Also if you can tough it out for a few more months of cramming together and are able to build up your credit score,  you could potentially save thousands of dollars through the life of the mortgage if you can get a better interest rate. 

[miz]

GOT IT.  Okay, paid $500 a month for rent last two years ($12,000), they are asking 90K for the house, needs at least 20K (rough, very rough) worth of repairs, so if they'd split the repairs, 10K then it would be 22K (depending on what % they will let us use, maybe all) of the downpayment. So what do you think??  It's a HUGE house, four bedrooms, family room, living room, eat-in kitchen . . . set ups a little weird, but a little work and it could be loveable . . .  Does that give you what you need? 

[miz]

problem being is they want us out by the first unless are going to buy it . . .. (yes, that's July)  I live in a rural community and rentals are EXTREMELY hard to come by!!!!!

[Anonymous]

put it in escrow and play the odds...may buy you soom time and another solution...IMHO

[miz]

what do you mean by "putting it in escrow?"

[Anonymous]

in your state who handles the closing process of home purchases?  Attn. , title co's, escrow co's.?