I am trying to find financing for a new home. I have been looking at lower price properties, but am having a problem finding financing. I have some credit issues, but have found some mortgage companies that will finance me if I buy a house for at least 100K. I can't afford that much house and am looking for the under 70K range. What other route could I take to get the money for a new home? This is sancraft. I didn't realized my DD was logged on.
check w/your local (well, the area you want to move to) farm agency...lots of states have programs to help women who want to "farm" get low interest loans...i know okla does...and that's one of the avenues i will explore when i am ready to buy (after i get a job...sigh) there are restrictions (have to own a # of yrs, etc) but if it's the only way you can get a loan....i think "requiring" someone to buy a 100k home when they only want/need a 70k home (which is basically what they are trying to do to you, sancraft) is just criminal... btw, how're ya doing?
Well, no doubt you've been looking at the "Rent to Own" thread--it can work if you do your inspections and so forth. If possible, look to family. Why pay a bank all those fees and interest too, when you can pay a family member the interest? Helps you, helps them (yes, you both should report the income (lender) and deduction (borrower) on your taxes). Another option is your local credit union. They are much less inclined to deliberately over-extend someone. What you're saying sounds awful. IMHO, if creditors deliberately extend credit to people who shouldn't have it at all or force them into more credit than they need and the people default (in other words, preditory lending that reasonable lenders would not stoop to), the creditors should eat the loss and not be able to raise rates on everyone else. Good luck getting a place--with interest rates going up soon, from the looks of it, lease-option (a legitimate one) might be your best bet.
You could also try an "in house mortgage" with a small local bank. The person that decides everything is right in front of you and you can explain anything on you credit report and are usually more easy going than a mortgage company. We did that when we bought our house, it is our first and we did not have the greatest credit. Goodluck
I have found that the realtor who shows you the property to be a good source of information on borrowing. It makes sense if you think about it, since they are more likely to make a sale and earn a commission that way. They WANT you to qualify and buy the property. Also, I have heard that small, local banks can make more judgement calls than a large chain can. With a large chain, guidelines come from the brass in another state. With a small local place, you might actually talk to the person who makes the decision.
also ask the lender to recommend someone else. I bought a house as a single mother years ago. My loan was preapproved and I had already moved into the home when they decided they couldnt make the loan. They handed my loan package to a lender that they knew would be able to do it.
have you tried fha? they are more forgiving on some credit issues than conventional loans, however the property must meet their requirements. that doesn't mean it has to be expensive, but many older houses might need minor repairs to qualify. the last one i bought, we had to go in and paint over some lead paint and cover some wiring before the loan would go through. jena
mrs oz here When we bought our house 6 yrs ago FHA was the way we ended up going to get the loan. We also had part of the downpayment gifted from a family member since at that time we had trouble coming up with a large sum of cash. Owner financing would be ideal!!
If you have some money for a downpayment and the house you are looking at meets the basic local code...you can always do a "no doc" mortgage. Typically 80% of current appraisal and about 2% above local mortgage rate. They can be converted to a standard anytime thereafter. There's tons of info on the net.
Thanks for your suggestions (that was me, I didn't know my Dd was logged on). I will try the local bank and the no docs route.
