Mortgage Advice About Shaky Credit

by Sharon

Regarding Mortgage Advice About Shaky Credit: Kate, how does a non traditional home buyer with shaky credit get a mortgage? My husband and I do everything backwards. We got married and immediately had children. While we both had jobs, they were not that dependable.


As a result, we juggled bill paying, with the bills often taking a backseat to such things as diapers, food, water, electricity and shelter.

After finally establishing a slight foothold we took my brother-in-law up on buying his 1940s home in the country. The house needed a lot of work but it was larger than the home we were renting and was even $20 less per month.

We set up the paperwork for us to rent to own the home. For just over 3 years, we paid $250 per month and got the title to the house. As I said, the home needed a lot of work but was not uninhabitable. My sister-in-law was sick of living in the country and they had already bought another home so we got a great deal.

My husband and I are finishing our college degrees finally and want to relocate. We have some blips on our credit report from our days of total poverty but now we pay for everything in cash, with the exception of car loans.

We were considering using our present home as collateral but is that possible if we move outside this area, possibly out of state?

Also, will the ridiculously low price we paid and the cost of pending repairs, roof, main beam under house, section of wall replaced, cancel out any hope we have of using this as collateral?

Will anyone besides our local credit union (where we finance our vehicles) give us a second glance?

Kate Answers: Mortgage Advice About Shaky Credit

Hi Sharon, Congratulations! I am happy for you. Sounds like your planning has really improved life for you and your family.

Continue to improve your credit. This is your key to acquiring affordable credit. Go to How To Fix A Credit Score Fast for tips to strengthening your credit.

Cross collateralizing a home in the same state is not easy, even in a healthy financial market. I am not saying it can't be done but you might have a longer road ahead of you taking this path. Have you thought of refinancing it to get cash for a down payment on the next home, instead?

When a house needs major repairs, yes, as you suspect, this can make financing more difficult.

Here's a thought. Since you bought the house on a rent to own contract with your brother, have you considered selling in the same manner? It is always wise to consult a professional within your state, for example an attorney or real estate agent, for advice.

If you think you can only borrow from your credit union, you might want to ask them if they lend out of state. If they don't, perhaps they can offer a referral.





PS What if you could turn YOUR dreams into reality? Now you can. This is MY story of dreams coming true.

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