Question by Mandy: Can bad credit and low income= housing?
My husband and I have been married almost 2 years. We make just under ,000 a year combined. I have approximatly ,000 in student loans that I cannot repay (they are asking over 00.00 a month and are unwilling to accept lower payments and we are now in a court battle). Our total debts (even with consolidations and payment programs) are more than 75% of our monthly income. We are trying to find an affordable apartment in our area but are unable. We make too much for “Affordable Housing Programs” and not enough for the regular rent. We are stuck. My credit is terrible, but my husband’s is ok. We were told by a friend at work that we can buy a house in the area for less than what these places are asking in rent. I looked into the properties and he’s right. Even with no money down and the interest rates… it is still cheaper than the snooty apartments. I am NOT looking for someone to tell me to “pay off my debts and stop living beyond my means”… I’M NOT! I am paying off my debts and I don’t do any spending that isn’t groceries, gas, and utilities. I want to know if anyone has done the “No money down, bad credit” style mortgages and what the pros and cons are????
(And FYI to the asshole who is probably going to leave me one of those “this is why the ecomonic base in this country fell off…subprimes…yada yada yada”… I don’t want to hear it. There are a multitude of factors of why the economy sucks and I am sure you were doing to something to help it along too. Stop judging other people!)
Best answer:
Answer by steveko777
Mandy–most rent to own programs are laden with fine print and you will just end up with another problem. Any deal that sounds too good to be true -usually isnt…and their are loads of predators that would love to bring you into their web.. You guys need to figure out why you are in this trap—-cut your expenses and debts–perhaps it is time to start the washer-and consider a bankruptcy… I am not trying to be an A-hole—but I know a lot of couples skating by on half the income you have….granted they rent too—but thats all they can afford in this climate ….
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You can’t buy, your debt ratio i too high, and if you are defaulting on your student loans, and it sounds like you are you will have trouble renting, let alone buying. People will tend not to trust you, on paper it appears that you are not exactly the most reliable person out there.
If, as you say, you are paying your debts you credit score should be OK. You just need to bring teh debt ratio to a reasonable level, once that student loan is about 25% of your income you should be able to buy.
There are no “No money down, bad credit” loans out there, other then VA and USDA, but your debt is still too high.
creditreport.imess.net – try this service to boost you credit score before getting loan. After credit repair you can get the loan with minimal interest rate.
there is no way you would ever qualify for a mortgage with debts that high
I doubt the overall cost of a house would be less than an apt when you get done adding in property taxes(100-200 or more per month), homeowners insurance(50 per month), PMI insurance(50 per month) (required if you have less than 20% down), plus new utilities you never had to pay for in an apt – like water, sewer and trash – those 3 utilities run me about $50 month on top of electric, heating oil and cooking gas and regular utilities will be more in a house because a house is bigger
No-money down mortgages are long gone – that’s what caused a lot of the banking and housing market problems – the minimum cash you will need is probably 10% for down payment and closing costs – IF you can get an FHA mtg
I thought school loans were supposed to be paid back over 10 yrs – $1000 a month on 30,000 is only 3-4 yrs. – that payment amt sound way out of line