Mortgage possible or pipe dream?

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I’m a single mom and not in a good living situation. I would like to leave, but honestly, for what I would pay for rent in an apartment, I’m thinking I would pay just as much for a mortgage with a cheap house. And I mean CHEAP. Around 50k, or under, and there seems to be an abundance of cheap housing these days.

Here are the issues. I’m only working part time. The reasoning behind this is I’m starting nursing school full time this August, and between school work and my child, I’ll be doing a balancing act, so I cut back on hours. My credit score is also not fantastic. 595 Experian. I did just pay off 3 accounts on my credit report this week, so I’m hoping that score goes up a few points when those accounts show as paid. I won’t be able to have much of a down payment, possibly $ 1200, more if I could convince a family member to front me money for a down payment that I can repay with the tax credit. I don’t know if that’s a possibility, and I’m sure my income level will probably mean at least a cosigner, though I may be hard pressed to find one.

I know that’s a lot working against me, but…my child and I need to go, and within 3 months-ish, we really need to be out. How realistic is it that I could get a mortgage loan as a first time home buyer?

  1. Reply
    April 30, 2011 at 12:26 am

    Your credit score is low but it should go up within the next 30 days after those payments have been posted. You should have just paid it down 30% of the remaining balance so you would have more cash on hand.

    Look into FHA programs as they don’t weight their decision on credit as much. It may be possible but you will have to do a lot of work to make it happen. There are also some great first time home owner tax incentives available. It will expire at the the end of this year. Get going!

  2. Reply
    April 30, 2011 at 1:20 am

    Don’t do anything crazy. But it seems that your haven’t paid on time because you credit score is VERY low. Paying off your three accounts tells me that you have many problems. You need to be responsible here and just rent in a better place. Obviously you can afford what you are doing now because you are paying down your debts. So why not continue. Don’t rush.

    As for college. Get student loans. Find out how many of your courses you can do online. It is really important for you to work. Also check on the new home buyers program. While this kinda only helps people with good credit scores you get a really good tax credit for buying a home right now. You might be able to give that money away to a relative. If you want a house rent one. Raise your credit score and be financially sound. Plus nobody will offer you a mortgage with a part time job.

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