Home Buying - Ask Rich / Money 101

CoCo · 07-11-2009, 10:31 PM

My husband is going to be in Charleston, SC for A school. His schooling will take awhile and I am going to be attending college there for 3 years. We have been up there quiet a few times to visit and love the place. Since I have to be there for 3 years for schooling, we would like to buy/build a house (170,000 price range) and would like to retire there one day. However, with bad credit how can we make this happen. My husband's credit score is 545. We have to wait a few months for VA loans to become available to us, will VA loans approve someone with bad credit? any experiences? Thanks!

BlueBird · 07-11-2009, 10:39 PM

Id like to know this too... Our credit isn't great but we are financially back on track and have a very good plan and budget.

Roboto · 07-11-2009, 10:46 PM

Prior to all the problems with the housing market, a friend of mine received a VA loan although he had bad credit. His interest rate was pretty high, though. The VA loan isn't technically a loan through the VA, the VA just provides a guarantee to the lender you use. So the VA might be willing to give you a certificate, but your lender might not be willing to lend you money if you have a low credit score. Mortgage requirements have been tightened quite a bit so I really don't know how much people with low credit scores are getting pre approved for. A lender might be more willing to work with someone who can get a VA certificate, but again, I don't know for sure.

CoCo · 07-11-2009, 10:49 PM

Thanks! it is just so hard to find info on google or anything else.

KristiJ · 07-11-2009, 10:54 PM

Check with a loan officer! They can tell you what loan works best for you besides a VA.

Since you do have bad credit your rates will most likely be higher.

They can also help you improve your credit score too!

Roboto · 07-11-2009, 10:56 PM

Your welcome! I'm glad that makes sense. Another thing you might want to look into: Since you want to purchase a home now and keep it for a long time, and obviously with him being in the military you will not always be in Charleston, the VA has rules about renting out homes purchased with a VA loan. I'm not sure exactly what the regulations are since ours will be paid off by the time we move, but you might want to check into it.

CoCo · 07-11-2009, 11:03 PM

we are planning on taking on paying off our debt with is enlistment bonus. we are in less then 15000 in debt. once we get that taken care of we will try to get our score up. we are enrolled in careone right now so we dont get behind on any more payments and then we will just pay everything off. it is just so expensive to rent a place in charleston and on top of that since I am in school for interior design i am dying to get my hands on a room lol!

KristiJ · 07-11-2009, 11:06 PM

Originally Posted by CoCo

we are planning on taking on paying off our debt with is enlistment bonus. we are in less then 15000 in debt. once we get that taken care of we will try to get our score up. we are enrolled in careone right now so we dont get behind on any more payments and then we will just pay everything off. it is just so expensive to rent a place in charleston and on top of that since I am in school for interior design i am dying to get my hands on a room lol!

Sounds like you are going in the right direction!

Plus, with rates being low/lower that previous years, sometimes rent can be as much as a mortage payment. Rather invest towards a home and get it back when you sell, than renting.

Joelle · 07-14-2009, 10:29 AM

I live in Columbia SC and we bought our home here for 185k. I would say...good luck getting a house in Charleston for 170k...it's pretty expensive, but you could rent a pretty nice place there. Also, I don't know where in Charleston you want to build, but their architectual review committee is a real pain, but thats what makes the place look so nice.

CoCo · 07-14-2009, 06:36 PM

it is in charleston but on the goose creek side of things but not in north charleston lol. hard to explain. we found a house and everything. in a subdivision. we love it. so i dunno. hopefully we can get approved.

07-11-2009, 10:31 PM	#1 (permalink)
CoCo New to the Navy Join Date: Jul 2009 Location: Cookeville, TN after bootcamp Charleston, SC Posts: 54 Classifieds: (0) Activity: 5% Longevity: 6%	Home Buying My husband is going to be in Charleston, SC for A school. His schooling will take awhile and I am going to be attending college there for 3 years. We have been up there quiet a few times to visit and love the place. Since I have to be there for 3 years for schooling, we would like to buy/build a house (170,000 price range) and would like to retire there one day. However, with bad credit how can we make this happen. My husband's credit score is 545. We have to wait a few months for VA loans to become available to us, will VA loans approve someone with bad credit? any experiences? Thanks!

07-11-2009, 10:39 PM	#2 (permalink)
BlueBird operation: be strong Join Date: Oct 2008 Posts: 5,168 Classifieds: (6) Activity: 91% Longevity: 19%	Id like to know this too... Our credit isn't great but we are financially back on track and have a very good plan and budget. __________________

07-11-2009, 10:54 PM	#5 (permalink)
KristiJ I thought I told ya, Imma star! Join Date: Sep 2008 Location: Me: Wisconsin! Posts: 7,373 Classifieds: (0) Activity: 92% Longevity: 19%	Check with a loan officer! They can tell you what loan works best for you besides a VA. Since you do have bad credit your rates will most likely be higher. They can also help you improve your credit score too! __________________ MY FAVORITE BOYS Let's Go Pens! 14-8-0 Proud Wifey to all my Single Ladies and Blazeman!

07-14-2009, 10:29 AM	#9 (permalink)
Joelle Love My Captain! Join Date: Nov 2006 Location: Ft. Jackson, South Carolina Posts: 1,516 Classifieds: (0) Activity: 21% Longevity: 51%	I live in Columbia SC and we bought our home here for 185k. I would say...good luck getting a house in Charleston for 170k...it's pretty expensive, but you could rent a pretty nice place there. Also, I don't know where in Charleston you want to build, but their architectual review committee is a real pain, but thats what makes the place look so nice. __________________ Wifey to Southern-Momma!

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07-11-2009, 10:46 PM	#3 (permalink)
Roboto bend...and snap! Join Date: Nov 2008 Location: Somewhere over the rainbow Posts: 4,091 Classifieds: (0) Activity: 91% Longevity: 17%	Prior to all the problems with the housing market, a friend of mine received a VA loan although he had bad credit. His interest rate was pretty high, though. The VA loan isn't technically a loan through the VA, the VA just provides a guarantee to the lender you use. So the VA might be willing to give you a certificate, but your lender might not be willing to lend you money if you have a low credit score. Mortgage requirements have been tightened quite a bit so I really don't know how much people with low credit scores are getting pre approved for. A lender might be more willing to work with someone who can get a VA certificate, but again, I don't know for sure.

07-11-2009, 10:49 PM	#4 (permalink)
CoCo New to the Navy Join Date: Jul 2009 Location: Cookeville, TN after bootcamp Charleston, SC Posts: 54 Classifieds: (0) Activity: 5% Longevity: 6%	Thanks! it is just so hard to find info on google or anything else.

07-11-2009, 10:56 PM	#6 (permalink)
Roboto bend...and snap! Join Date: Nov 2008 Location: Somewhere over the rainbow Posts: 4,091 Classifieds: (0) Activity: 91% Longevity: 17%	Your welcome! I'm glad that makes sense. Another thing you might want to look into: Since you want to purchase a home now and keep it for a long time, and obviously with him being in the military you will not always be in Charleston, the VA has rules about renting out homes purchased with a VA loan. I'm not sure exactly what the regulations are since ours will be paid off by the time we move, but you might want to check into it.

07-11-2009, 11:03 PM	#7 (permalink)
CoCo New to the Navy Join Date: Jul 2009 Location: Cookeville, TN after bootcamp Charleston, SC Posts: 54 Classifieds: (0) Activity: 5% Longevity: 6%	we are planning on taking on paying off our debt with is enlistment bonus. we are in less then 15000 in debt. once we get that taken care of we will try to get our score up. we are enrolled in careone right now so we dont get behind on any more payments and then we will just pay everything off. it is just so expensive to rent a place in charleston and on top of that since I am in school for interior design i am dying to get my hands on a room lol!

07-14-2009, 06:36 PM	#10 (permalink)
CoCo New to the Navy Join Date: Jul 2009 Location: Cookeville, TN after bootcamp Charleston, SC Posts: 54 Classifieds: (0) Activity: 5% Longevity: 6%	it is in charleston but on the goose creek side of things but not in north charleston lol. hard to explain. we found a house and everything. in a subdivision. we love it. so i dunno. hopefully we can get approved.