Renting now... Looking to Own here in 2 Years

[Casey Mack]

I am a single 28 year old male, have been renting for 7 years now and am looking to buy a home in 2-3 years.

Any advice for someone who has about a 580 credit score...?

What steps in the next two years should I be taking to better my situation...?

[Marcus Mccray]

Casey,

This is what I do...help renters become homeowners! If a person sticks to the laid out plan it is possible for them to go from renter to a homeowner in about a year. It is a business that I just started up and am working on the website as we speak! I do charge for the service so if you want more details you can email me at my address below in my info.

For now here is some free tips cause anything I post here will be free...

*The min score to qualify for a home loan right now is 620 so that should be your aim or higher. Credit repair will give you a good head start.
*Also you will need a minimum down payment of 3.5% of the purchase price, ie house price= $100,000x3.5%=$3,500 down payment.
*You'll also need money for closing costs (lender fees, escrow fees, title fees, appraisal, etc) that tie in with the purchase of the house roughly comes out to 3% of purchase price.
* You also want to cut/pay down your debt as much as possible. As stated above lenders base their decisions heavily on your debt-to-income. Here's how you figure that...take your monthly gross income and divide by 2.Next add up all your monthly credit payments ie car, credit cards, student loans (unless deferred), medical bills etc.and subtract that from half your gross monthly income. What you have left is the house payment you can afford. So you could then buy a house where the monthly payment (PITI) is less than that number.
Example: Gross monthly income=$4000
Divide by 2=$2000
Lets say you have a car payment and 2 credit cards that total $500 every month.
$2000 minus $500 = $1500
You would qualify to buy a house where the monthly payment (including taxes and insurance) equals $1500 a month or less.
(the amounts above may differ depending on who you talk to and what lender you go through)

There are also alternatives like a lease option or rent to own but most owners will want to be sure that you will qualify for a loan at or before the time comes for you to exercise your option to buy.
You can also find a distressed homeowner and take over their mortgage payments. Depending on how many months behind they are it may be affordable for you to catch up the payments.

Hope this helps!!