Posted on: 26th Mar, 2009 06:11 am
hello,
i live in ny (not nyc, if that makes a difference). i am married and live in a rental home. i would like to purchase the home we are renting. this would be the first home owned by either me or my wife. i am on social security disability (back injury), and i am in school as well. my wife works part-time and doesn't make much money. ssd is our primary source of income. we receive a total of about $35,000 per year in ssd. the bulk of the money goes into my bank account.
things get a little complicated. i have had credit for years, but my credit got really messed up when i was no longer able to work, in the end of 2002. i also have back state taxes, and have two or three public records because of it. i started to work on my wife's credit just over a year ago. she had no credit history at all, just some bills she hadn't paid from before we got married. i managed to have all of the negative accounts removed and got a secured credit card for her, with a $200 limit. she got a store card with a $550 limit and i recently applied for another credit card for her, but don't know what the limit will be yet. this gives her three revolving credit types, one barely over a year old, one half a year old and one brand new. her credit score is around 700. however, she has no real income, besides my ssd. she is also very bad at managing money and always overdraws her checking account.
i have a few credit cards for just over a year now, also never late on a payment, but i have several older accounts that have been charged off. i paid off several of my old accounts, but i was not able to have all of them removed. there are also several that i was not able to pay off, and will remain on my credit report well into 2012 (the majority will fall off in 2010). i am the one with the majority of the income and my bank account was overdrawn one time (when i let my wife use my debit card).
in short, my wife has good credit, but limited credit and low amounts. she also has a poor record with her bank account.
i have bad credit, with state taxes owed, but a more extensive credit history, better bank history and the bulk of the family income.
what options do we have? i would guess the best bet is to try to get the house under my wife's name, since she has nothing negative on her credit.
are there any particular options available to us since we get along well with the current owner of the property? i kind of trust him, but not 100%. he told me he owed $350,000 on the house, and i found out that he owes $255,000 on the house (there is a second mortgage on the house and it could make the grand total $350,000. i only have the information on the primary mortgage). in any case, i will be getting someone to do an appraisal.
any help would be greatly appreciated.
thank you in advance,
dennis
i live in ny (not nyc, if that makes a difference). i am married and live in a rental home. i would like to purchase the home we are renting. this would be the first home owned by either me or my wife. i am on social security disability (back injury), and i am in school as well. my wife works part-time and doesn't make much money. ssd is our primary source of income. we receive a total of about $35,000 per year in ssd. the bulk of the money goes into my bank account.
things get a little complicated. i have had credit for years, but my credit got really messed up when i was no longer able to work, in the end of 2002. i also have back state taxes, and have two or three public records because of it. i started to work on my wife's credit just over a year ago. she had no credit history at all, just some bills she hadn't paid from before we got married. i managed to have all of the negative accounts removed and got a secured credit card for her, with a $200 limit. she got a store card with a $550 limit and i recently applied for another credit card for her, but don't know what the limit will be yet. this gives her three revolving credit types, one barely over a year old, one half a year old and one brand new. her credit score is around 700. however, she has no real income, besides my ssd. she is also very bad at managing money and always overdraws her checking account.
i have a few credit cards for just over a year now, also never late on a payment, but i have several older accounts that have been charged off. i paid off several of my old accounts, but i was not able to have all of them removed. there are also several that i was not able to pay off, and will remain on my credit report well into 2012 (the majority will fall off in 2010). i am the one with the majority of the income and my bank account was overdrawn one time (when i let my wife use my debit card).
in short, my wife has good credit, but limited credit and low amounts. she also has a poor record with her bank account.
i have bad credit, with state taxes owed, but a more extensive credit history, better bank history and the bulk of the family income.
what options do we have? i would guess the best bet is to try to get the house under my wife's name, since she has nothing negative on her credit.
are there any particular options available to us since we get along well with the current owner of the property? i kind of trust him, but not 100%. he told me he owed $350,000 on the house, and i found out that he owes $255,000 on the house (there is a second mortgage on the house and it could make the grand total $350,000. i only have the information on the primary mortgage). in any case, i will be getting someone to do an appraisal.
any help would be greatly appreciated.
thank you in advance,
dennis
I should also add that the property has a guest house, an upstairs apartment and a basement apartment. The total rental income is about $1,600 per month, and it is fully rented. If I can get the house for between $250,000 and $300,000, the rental income would probably be enough to pay the entire mortgage.
Dennis
Dennis
dennis, what we would really need to know is what your credit score is. your wife would not qualify for this loan on her own, inasmuch as the income is truly yours. if your score is 620 or more, you can look into fha financing. there is also a program (rural housing) that allows credit scores lower. whether you are eligible or not is partially determined by the location of the property in question.
how many units is this home considered to be? 3? 4? that's also a very important element in the mix. if you know your score, that's a good start, but please provide a little bit more information so you can get a reasonable response from us.
how many units is this home considered to be? 3? 4? that's also a very important element in the mix. if you know your score, that's a good start, but please provide a little bit more information so you can get a reasonable response from us.
My Experian score is 561 right now. Before I put so much on my credit cards, it was 638. The main problem with my credit is the fact that I have the New York State taxes showing up as public records. I can get my score back up to around 600, but one of my credit cards is about $10,000, so that would take a few months to pay off. I'm in graduate school and paying for everything out of pocket, so my cards are pretty much maxed out right now (the reason for the drop in the credit score). In my case, it's not just a matter of the credit score, it's what shows up on the credit reports as well. I also have a federal student loan I was no longer able to pay, but appears twice. The debt was canceled due to my disability, but it still shows up on the reports. I have a car loan that was charged off, as well as a host of old credit cards.
The property has four units total, but I don't know if all four are really supposed to be rental units. I live in the main house.
How much more information do you need? I put as much information as I could think of in the first post.
Dennis
The property has four units total, but I don't know if all four are really supposed to be rental units. I live in the main house.
How much more information do you need? I put as much information as I could think of in the first post.
Dennis
what part of new york are you in...town?
Dutchess County.
Hi DBarcelo
You will not be able to get a FHA loan with a credit score of 561. You will require a credit score of 620 in order to get a loan. Moreover, you have mentioned that some of your accounts have been charged off. This will also go against you when you apply for a loan. You'll have to remove the negatives from your credit report and improve your credit score. Once you do that, you would be eligible for a loan.
Thanks.
You will not be able to get a FHA loan with a credit score of 561. You will require a credit score of 620 in order to get a loan. Moreover, you have mentioned that some of your accounts have been charged off. This will also go against you when you apply for a loan. You'll have to remove the negatives from your credit report and improve your credit score. Once you do that, you would be eligible for a loan.
Thanks.
So it seems that right now, there are no options open to me, besides paying for the house outright (which I can't afford to do).
Dennis
Dennis
dennis, i am trying to determine if the usda program would fit your circumstance. they allow for lower credit scores, but their loans are not available in all locations. that's why i asked where you are located.
dutchess county is partially eligible, and partially ineligible. i would need more specific information to let you know it might work or not. literally, it goes by actual address. you may not want to divulge that here, openly; but you can use the private message function if you wish to give that to me.
dutchess county is partially eligible, and partially ineligible. i would need more specific information to let you know it might work or not. literally, it goes by actual address. you may not want to divulge that here, openly; but you can use the private message function if you wish to give that to me.
Thank you for the information. I went to the web site for the USDA Rural Development, and they have a program for low income, disabled, as well as living in rural areas for multifamily homes. I happen to be all of the above. My wife gets money from my disability under her name, she is also the payee for all of the children, which goes under her name. That, along with her part-time job and good, but short credit history, may be enough. I will call the office in Middletown to find out more information about the program. I will let you know the result.
Dennis
Dennis
I got the web site for the program and my address does qualify.
Dennis
Dennis
that's good news.
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
In case anyone else needs it. This is the site to find out if an address qualifies for the USDA programs.
Dennis
In case anyone else needs it. This is the site to find out if an address qualifies for the USDA programs.
Dennis
Thank you for sharing the information Dennis. I hope this would help a lot of people in the community who are looking for USDA loans. :)
iam on ssd and would like a loan
Willie, you didn't indicate what kind of loan you're seeking - a mortgage, a personal loan, a car loan...so many other choices. You'll need to fill us in a lot more if you wish to get any information on somewhere you might find someone to provide a loan to you.