Need advice: Home buying for low income w/ bad credit?

Credit and mortgage advice Forums Buying Your Home Need advice: Home buying for low income w/ bad credit?

This topic contains 6 replies, has 7 voices, and was last updated by  Anonymous 7 years, 11 months ago.

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  • #208645


    Does anyone have any advice for buying a home if you have low income and bad credit? I live with my fiance and am disabled, but not on disability yet. We both have miserable credit, but his grandmother has immaculate credit and will co-sign. We just want a nice house in the suburbs of Huntsville, AL, where we live… we are tired of throwing rent money away for nothing!

    He currently makes under $13k a year, which I know is not much at all.

    Does anyone have any advice for us? We aren’t in any hurry, of course, we are looking to buy within the next two years, tho… preferably the sooner the better, but we know better than to hope for that.

    I really can’t deal with the HUD here in Huntsville, AL, due to the fact that they only allow their housing program out the people who have lived in public housing for one year and must have children and the waiting list for any kind of housing loan help thru them is over 2 years long now. That’s why I’m looking for extra options.

    $13k may not seem like alot to those who live up north, but this is Alabama, and it doesn’t cost too much to live where we do… we live comfortably in a nice apt in a nice neighborhood… we’re just ready to move on to something better… we’re 27 and 29, respectively, and ready to start a family. (we have no children right now)
    Oh yeah, and when I said suburb, I actually meant just some nice neighborhood house within the city… I forget that the term suburb may have a different meaning in different places.

    Houses generally go for $40k – $150k in the neighborhoods we’ve been looking at.

  • #264217


    There are several different options for you. Some lenders specialize in offering loans with those who have poor credit. You might end up with a higher interest rate but it may be worth it. Yet, if granny’s willing to co-sign then you shouldn’t have that much to worry about. Have you considered buying a foreclosure? You can even find one online ( You can get a below-market house with a foreclosure. You may want to look into it. Just be sure not to get in over your head. If you really can get a house for 40k-100 I’d get one on the lower end. Remember, it’s your starter home. You have plenty of time to improve your credit then move on up.
    Good luck. You’re obviously internet savvy- you should research online for a reputable company.

  • #272855


    Have you checked with Habit for Humanity? or HUD? I would start there.

  • #274102


    My husband and I have been through previous divorces and the pains that come along with that financially and our credit sucks. We just bought a house this year though. Check around for people offering “land contract.” A lot of homeowners are willing to do this because people come in, pay more than they would normally pay for rent and then can’t keep the house so they get more than what they would have recieved if they were renting. They also like to do this as oppossed to renting because if you are buying it you can’t very well come to them for repairs. The result is if you are serious about buying and paying regularly for a house you can typically get one on land contract with little money down (or no money down in our case) and your credit isn’t as much as an issue as it would be with a bank.

  • #274276


    First and for most sign up for homes for humanity – it appears that you may be a good candidate. Also try HUD – a HUD loan is what you need.

    But you want to live in the suburbs on his salary and your disability – hmmmmmmmmmmmmmm

    I think you’re pulling my leg, are you?

  • #276905


    I’m not sure what the program is called but it’s through Bank of America. They help you get a loan by looking at your current utility bills only. Such as phone/electricity. They don’t look at past bills. If you’ve been keeping up on your utilities you have a good chance of getting accepted. Also, there are a lot of rent to own houses.

  • #288084


    First of all keep your payments up the best you can to raise your credit score. Second, he needs to find a better job or get a second job. You both want a better life and your efforts will be well worth it.

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