Expert: Jessica Bryan - 7/11/2005

Question
Dear Jessica,

I have just been recently married, and my wife and I are interested in buying our first home.  My credit score is around 600, which I have been told is not that great, but I have worked a steady job for the last two years, and made regular payments on all of my debts.  My problem is that I do not have a huge down payment to put on a house, but I know that I could afford a payment of around $650 per month.  I was wondering if you would be able to direct me towards some type of loan program that would fit my scenario.  I appreciate your time, and thank you in advance.

Sincerely,
Jason

Answer
Dear Jason;
There are some great loans for first time buyers.  Different states have different names for these and various programs, but they fall under the "American Dream" government program for assisting first time buyers.  Ask you local lenders about these programs. In addition,there are Government grants that help you buy your first home if you make under $40,000 a year.
They give you cash for a down payment that does not have to be repaid. You can check into these by going to the US Government website and looking for contact information for housing issues. With persistence and phone calls you can get the information you need. Depending upon the state and city in which you live, there is grant money designated for the purpose of assisiting first time buyers. You will need to contact your local agency. I have included a couple of websites to assist you in finding the contact numbers. Once you find the appropriate office you will probably have to repeat your story a dozen times, get transferred around to various people and spend long hours on the phone. It is not an easy process but with determination, you can do it! Don't take "no" for an answer. I have found that many people are unwilling to help if it means that they have to do more work or be creative. This is very true of government workers. Get them to explain the rules, and if you don't fit the profile ask them to put you in touch with their supervisor. Keep questioning and asking for assistnace from higher up's in the chain of command until you get someone who is willing to help you. There is always an answer somewhere, it just means that you need to dig a little deeper. As a broker, I have had some rather impossible cases where the client was unable to afford a home and had loower credit scores. In fact, by spending long hours working with these people and agencies, I was able to help them get into a home and rebuild their lives. There are so many different programs that it is hard to know where you will fit in. By calling a few lenders, they too can help direct you. Several lenders have key information about government assistance and if they don't then ask some of the major banks in town. Bank of America, for example, may not participate in these programs but will have referral information that can help you get started. One word of caution: be careful of the small mortgage broker who claims they can help. Some of these are unscrupulous and may cause you major problems. Always obtain a referral from a qualified professional such as an attorney or real estate broker.
Here are the websites to get you started:
http://usgovinfo.about.com/gi/dynamic/offsite.htm?site=http://www.hud.gov/fdcomp...

(scroll through the various HUD topics and begin clicking on various links.)


http://usgovinfo.about.com/gi/dynamic/offsite.htm?site=http://www.hud.gov/fdcomp...

http://usgovinfo.about.com/gi/dynamic/offsite.htm?site=http://www.hud.gov/fdcomp...

http://www.statelocalgov.net/

That should be enough to get you started. Good luck.

Sincerely,
Jessica Bryan
Managing Broker
House to Home Realty Services