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I am new to this forum but have seen some great advice so I figured I would give this site a shot. I am currently living in Massachusetts and looking to relocate to North Carolina, I lived there for several years as a kid and absolutely loved it, and I believe it would be a great place to raise my newborn. I finance my college through student loans and credit cards and as a result of this have bad credit now, since I couldnt afford to support my finace with all the bills of the house at the time I had to lapse on my student loan payments, a blown motor in my car also forced me into a high interest car payment. I know I can afford a small mortgage, as I currently pay 900 for rent alone, with my fiances combined income I can afford to start paying my bills back as well now. Any and all advice would be appreciated since I am having a very difficult time finding legit advice online. Thanks so much everyone
Bad credit, in this current economy, will probably kill your chances. If your fiance has good credit, tho, I suggest you have her apply for the mortgage and then you can just pay her the money. If that won't work, renting might be your only option.
My wife and I have great credit (over 780) and still had to jump through fiery hoops to get a mortgage in Durham.
Here's my best advice: do not purchase real estate until you can put down 20% of the purchase price *and* have at least a 6 month cushion covering all expenses beyond that. With poor credit you will not get the best interest rate, if you are even approved for a loan. I know this sounds harsh, but why get yourself in deeper if you don't have to? Save up the $$$ and do it right.
I was going to suggest a FHA loan or USDA as well. I still they have they have a minimum requirement of 620 or so. I could be wrong.
Most people will probably disagree with me, but I don't think you should have to save up 20% to buy a home. It's that same mentality as saying that you won't do well in college if you don't have a high SAT score. I think you know your situation and have to use your own common sense. I just think it's a combination of a lot of stuff and honestly I think there are a lot bigger issues than the down payment.
Someone with poor credit and very little cash available should not be looking to purchase a home. I would recommend getting your financial house in order and then try and buy a home. Just my 2 cents as a 20 year home owner. Good luck.
You may be spending $900/month on rent, but owning a home you might also end up redoing plumbing or have a flood, or the heating system might go. Without 20% down you'll also be paying PMI. On top of that, you'll have a bad interest rate, if you can get a loan at all, with bad credit. You'll have property taxes, insurance costs, and regular maintenance costs. You know that blown motor on your car? You can have unexpected expenses like that times 10 with home ownership. Seems like you're assuming your large out-of-the-blue "one time" expenses are over. You can easily VERY easily be in WAY over $900/month even if you are only looking at lower priced homes. You need a cushion with home ownership.
Housing values will remain low for a time to come, don't rush. Don't buy. You're not in a good position to do so based on the info. you are giving.
Just my opinion, but...buying a house will be a blessing if you are financialy prepared but it can be a real nightmare if you don't have your finances in good shape...why not move down and rent first? I think your $900 will go further then in Massachusetts, meanwhile you can take a year or two and straighten out the financial picture? Are you familiar with Dave Ramsey'S Financial Peace program, he offers solid, real world advice for getting yourself on track financially. Here's his website if you want to check it out...Real Debt Help - Get out of debt with Dave Ramsey's Total Money Makeover Plan.
Best of Luck too you!!
I am new to this forum but have seen some great advice so I figured I would give this site a shot. I am currently living in Massachusetts and looking to relocate to North Carolina, I lived there for several years as a kid and absolutely loved it, and I believe it would be a great place to raise my newborn. I finance my college through student loans and credit cards and as a result of this have bad credit now, since I couldnt afford to support my finace with all the bills of the house at the time I had to lapse on my student loan payments, a blown motor in my car also forced me into a high interest car payment. I know I can afford a small mortgage, as I currently pay 900 for rent alone, with my fiances combined income I can afford to start paying my bills back as well now. Any and all advice would be appreciated since I am having a very difficult time finding legit advice online. Thanks so much everyone
Rents are decent here, but you may not even qualify for an apartment unless your fiance can rent it and put you on the lease as a second adult occupant.
Listen to the good advice you were given. You need a fixed housing expense each month, not unexpected hits like a $4K heat pump.
The days of "liar" loans and mortgages to anyone with a pulse rate are pretty much over for the foreseeable future.
Be aware also that NC public universities charge high out-of-state rates until you are a resident 12 months.
This may not be a good move to make right now.
Good luck from an ex banker and one of the folks who handled the first FICO scoring in the 1970's.
This is how our country got into a financial/mortgage mess in the first place! Do NOT buy a house until you have your finances in order. Surely not something you wanted to hear but this is a realistic advice.
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