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My husband and I are looking to buy our first home. We have found someone we would like to buy the home from and the cost of the house is 116,000. That is not including extra money for the grading or anything else that will need to be done. We are looking to take out a mortgage of maybe 130,000. I have a terrible credit score and my husband has as fair credit score of 679. HIs dad has a pretty high credit score seeing as he has 3 2005 cars in his name. and 2 new houses in his name. and he is willing to co-sign with us. WE don’t have anything to put down right now. It is a major cirumstance that we get a new place and I don’t want to rent cause I feel that it is a waste of money. So now the question. Is it possible to get a mortgage for 130,000 with that credit score for less then 500 dollars a month..If you have any information please let me know! WE both work and have a total income of $ 1800 a month. WE live in NC..anything would be great

8 Thoughts on Get a mortgage for a new home?
  1. Reply
    May 9, 2013 at 8:16 pm

    Even at 6.5% which is low for today your payment would be $ 778.00 per month.

  2. Reply
    Jon M
    May 9, 2013 at 8:25 pm

    I think $ 500 per month on a 130k mortgage is not likely. Probably more like 900 – 1000 per month.

    Here’s a link to some mortgage calculators.

    If your in-law can help you out with a downpayment, you could avoid some very costly extra monthly fees such as mortgage insurance. Mortgage insurance is an extra cost incurred each month on a mortgage when less than 20% was put as a downpayment. If your father in law lends you 25k to put down, then your mortgage payment would be much closer to the 500 you seek. You could agree to pay off your the 25k loan in 5 years or so at a pre-negotiated interest rate. You could pay off that loan by refinancing your home and to cover both original loans. I hope this makes sense. Bottom line, talk to a trusted lender. They’ll be able to offer you many more solutions than this!

    Good luck.

  3. Reply
    May 9, 2013 at 8:25 pm

    Its definitely something a mortgage consultant can look at for you, but I’m not sure about getting cash out from a purchase transaction. I certainly could look into it for you, as I happen to live in Raleigh, and am a licensed loan officer for NC. Stop by my website, and give me a call or email.

  4. Reply
    May 9, 2013 at 8:36 pm

    dont do it!!!!! get your credit fixed, then while you are doing the repairs, start saving money each week and put it in the bank in a savings account, owning a house is soooooo expensive, you think that you can afford the payment, dont forget about the taxes, the insurance, the utilities, the furniture, vaccuums, drapes, decorations, cost of mowing the grass, cost of keeping up the fence, painting the house, you have to have money in an emergancy account so if the heat goes out, you can fix it, or the dishwasher, or the water heater or the dryer or the TV, dont forget cable, phones, groceries, and more more more. It adds up so fast, and it is so expensive. For the sake of your marriage and the relationship with your inlaws, wait until you can afford it. If you go into this with your last dollars, you could lose everything, then your credit will be ruined for a very long time, your inlaws credit will be ruined, and you will never hear the end of it. Trust me, just wait. it wont take long if you really get after it.

  5. Reply
    May 9, 2013 at 8:55 pm

    You should try first to fix both credits. Get your credit report and check for late payments, how frequent were those lateness, If anything was reported as loss by the lender if you ever co-signed for somebody and somehow affected your credit. In other words search everything that shows and try to fix whatever you can, to try and get higher score. Do not go to a bank without investigating your credit first with good credit you could negotiate a better deal. His father seems to have loaded credit responsibility’s and might not be accepted as co-signer. remember with a fair credit you are still considered as high risk at least the co-signer should have enough to absorb that debt. I do not want to sound negative but there is no way a loan of that amount would pay less than $ 750.00 per month. Try to take things more smooth every one wants to own a home but first check your income V’s expenses and try to clear out your credit as best you can so when you apply have a better chance of being approved. There are bank were you could go for a free pre-qualification and they could give better information and by the way would tell you exactlywhat (if any) situations could come along with the credit and other posible issues

  6. Reply
    May 9, 2013 at 9:39 pm

    Yes, it’s possible but only with several factors going your way. First it’s important to know the value of the house. If it’s higher than the purchase cost, it’ll be easier for you to get a loan you want with no money down. Talk to several different mortgage brokers (NOT banks) and have them find you a loan based on your situation. your husband’s credit score of 679 is not bad, ask the mortgage broker on ways to bump it to above 700, or go to the library or book store for books on how to increase your credit score(yes there are actually books specifically written for this, sorry I don’t remember any particular titles or authors).

    Another way to go is to just have the dad buy it by himself as a second home if he can get a much better loan. He would have to trust that you and your husband will make the payments though. A good mortgage broker can gather your info and tell you your best option.

    From the info you shared, I think it’s going to be real tough getting the no money down loan with less than $ 500/mo payments.
    However, another way to go is to lease the house with an option to buy. This works if the owner doesn’t need the money right away. Basically you agree on a sales price for the house to be due in 1 to 3 years, in the meantime you pay rent for the house, ask for a rent “credit” up to 100% or as much as you can get that will go towards the purchase of the house. Advantage to you is you build equity in the house while living there (as if you were making mortgage payments), you have time to build your credit before getting a loan to buy the house, you lock in the price this year but don’t have to buy till 1 to 3 years.

    Another way to go is ask the owner to finance the house for you. This works if he owns it free and clear. If not, ask if he’ll take back a 2nd mortgage. This helps you because you won’t need to borrow as much money from the bank for the 1st mortgage, so it’ll be easier to get a loan for no money down with payments less than $ 500/mo Of course you’ll have to negotiate the terms and payments with the owner on the 2nd mortgage.

    Just know that you can buy a house with little to no money down without a great credit score and without lots of income, all that’s needed is the right set of circumstances (and paperwork which you can find in books at the bookstore under the “real estate investing” section) If it doesn’t work out for this house, just don’t buy it, find another one with a more motivated owner/seller. Don’t force yourself into a house you can’t afford.

  7. Reply
    Just Me
    May 9, 2013 at 9:46 pm

    $ 500 will not do it…not even close. $ 700-$ 900 is a more reasonable figure on 130K

  8. Reply
    David D
    May 9, 2013 at 10:32 pm

    There may be something of use here.

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