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Hey guys. My fiance and I are very, very interested in buying a home. We have been saving up like crazy the past few months (for a down payment). I’m wondering if we’d even be eligible, or should I just stop dreaming.

** We are looking for homes in a very low priced area in Minneapolis, MN. The homes usually are $ 40,000 and below. We would definitely at least have a 10% down payment. **

This is our situation:
1. We were evicted from our last apartments, because of our ex roommates’ negligence. Would this effect the likeliness of being approved for a home loan?
2. Our credit scores should be pretty good. We have always paid bills on time. The only negative thing within our credit history, was back when my fiance was 18 (24 now), he stopped paying his bills for an old cell phone, because he lost his job.
3. Our combined monthly income is only around $ 2500, depending on how many jobs I get per month with my photography business.
4. Our only bills are a car payment from me, cell phones, and car insurance. Which, together, equal around $ 500.

What do you guys think? Be completely honest! Thank you! 🙂

6 Thoughts on REALTORS / BANKS, will it even be possible for me to buy a home?
  1. Reply
    chatsplas
    February 28, 2014 at 6:11 am

    Difficult to get loan approval right now, and you have several negatives
    Self employment makes it tricky. . . how long have you had this business?
    Difficult to find lenders for small loans. . . .try local bank

    PLAN for your future. . .
    How long have you been working?
    Unlikely.
    PULL your credit and contest any errors, get any delinquencies paid off, removed
    Small loans can be difficult to obtain
    For FHA you need 3.5-5% down payment, minimum
    The larger your down payment, the more likely is loan approval and the LESS you pay in interest over the life of the loan
    Putting down 20% avoids substantial extra costs of PMI

    IMHO: you should PLAN for your future, SAVE, save, save, BUILD your credit, and LEARN about personal finance (take community college course, read/listen to Dave Ramsay (library/bookstores) )

  2. Reply
    Mom
    February 28, 2014 at 6:44 am

    There are NO mortgages for less then 50k. You pay cash or take a personal loan.
    your credit is destroyed, you have insufficient income, not enough cash for a payment and closing costs
    never mind paying property taxes, homeowner’s insurance, heat, hot water, sewer, trash, utilities, repairs, maintenance and lawn care

  3. Reply
    Solar
    February 28, 2014 at 6:46 am

    Banks may now be requiring 20% down. They are also very hesitant to make loans. Any nick on your credit will hurt right now.

    You may try to find some sellers who are having a hard time selling and arrange to assume an existing mortgage.

    Now is the time to be creative. Go to the library and see if they have any books on real estate. Also search the internet for purchasing strategies.

    There are lots of people desperate to sell properties, even banks who have foreclosed on some. Don’t be afraid to do some homework and explore all of your options. Now is a great time to be a buyer

  4. Reply
    Huntsman
    February 28, 2014 at 6:49 am

    Requirements:
    2 years of solid employment for your salary to qualify
    Clean credit reports – little debt
    The credit reports may show the eviction if there was an amount due.
    Check all 3 for free once a year at Annual Credit Report.com
    2. Google the statute of limitations for your state.
    If over the SOL – dispute that old cell phone bill.
    3. Photography business is considered self employment.
    Lenders will require 30% down (if you were doing the loan on your own)
    You will also have to show back tax records – 2 years.

    – It is extremely hard to find a bank that will make a mortgage for less than 50,000

  5. Reply
    ranger_co_1_75
    February 28, 2014 at 7:00 am

    Sorry, but federally regulated mortgage institutions are the only legal way to finance real estate at this time. The Dodd-Frank Act of 2010 took affect Jan. 1, 2011 and requires all Private Financed Real Estate Transactions to meet certain requirements. There are 387 different regulations that now must be met for Rent to Own or Owner Financing a Land Sales Contract, including things like the Buyers Credit Score and Finances must meet HUD Loan Requirments at the time the Rent to Own or Land Sales Contract is signed plus the buyer must attend classes on the Pitfalls of Private Real Estate Financing.

    If the all of the new regulations are not met, the buyer is entitled to a refund from the seller, of all the money the buyer has paid on the mortgage plus twice the amount of interest paid.

  6. Reply
    real estate guy
    February 28, 2014 at 7:41 am

    wow, the poster MOM may have changed her name from SOMEONE, but her answers are STILL WRONG.

    The first thing you need to do is talk with a local lender. If you don’t get a yes answer, then talk with a 2nd. Based on what you have said, I believe you can. FHA would seem the way to go. AND YES, FHA will take loans under $ 50,000.

    Talk with a lender.

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