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Old 07-26-2006, 12:24 AM   #1
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The family and I am looking to purchase a mobile home, or possibly a wheeless kind if the budget and credit allow, in the spring. We are in a lease until Feb. My question is, what are some things that I can do in the meantime to better my credit? I have student loans that I just consolidated that will be starting to be due around then, and I have 2 credit cards that are in default, but both are less than $1000 combinded. How do I go about taking care of these; they have been turned over to collection agencies. And, how do I pay off old debt plus save for closing costs and down payment. (Of course, there are really no closing costs when buying a trailer)
Any advice would be greatly appreciated. Also, anyone know of good programs for first time home buyers? I know they exist, don't know where to find them. Should be able to come up with between $2,000 to $5000 by the time I am ready to buy.
Ofcourse, if it were up to me, I'd say screw it and buy a SSEi.
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Old 07-26-2006, 12:38 AM   #2
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shop arround.... i'm living in a trailer with a friend of mine. he bought the place and i pay half of the lot rent. He paid $1200 for this place and it was a steal! you'd think for that price i'm living in a *^*T hold but its not! deals can be found. that would be my best advice really.
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Old 07-26-2006, 12:39 AM   #3
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Most important is to pay bills on time, and deal with those credit cards. See if you have a local credit counsoling service. Many times they can get lower payments and interest. With Ccards in default you will have a hard time getting credit. As for programs, you can try Fannymay, not sure on the spelling of that. There are a few others. Try a google search. Also, go to one of those credit report sites and see what you have, and clear up anything you see. Watch out for these sites as they may say free, but will actually charge you.
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Old 07-26-2006, 12:45 AM   #4
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I hate to be grim, but you HAVE to pay off that debt to the collection agencies before they go and mark up your credit. That would be the last thing you want especially when you're looking for a new place. No one is really going to approve you to make payments on a mortgage/rent if they see that you haven't made payments to other creditors in the past.

As far as trying to be able to save at the same time you're paying up? I say talk to the collection agencies and let them know your situation. Perhaps you can get set up with some payment plan that will allow you to have a little extra cash. Of course any extra cash you come across should automatically go into savings. No extensive modding for now

*EDIT - H&R Block Mortgage claims to be helpful with 1st time home buyers as well as those with less-than-perfect credit. I don't know much more about them than that, but I do know that they don't finance mobile/modular/manufactured homes.
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Old 07-26-2006, 12:55 AM   #5
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This is alot to do w/what I've been dealing w/the last couple of years!!! A credit counsiling service is ur best bet.....they stop the interest all together and adjust payments to suit u, works awsome!!!! And yes fanny-may is a route when coming to house buying....it'* through the government though so if u and or ur signifigant other have any school loans of any sort....time to pay those off too!!!
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Old 07-26-2006, 01:25 AM   #6
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Quote:
Originally Posted by xX1SSEI1Xx
I hate to be grim, but you HAVE to pay off that debt to the collection agencies before they go and mark up your credit.
Not always. Credit collection agencies buy debt at pennies on the dollar, and sometimes the worse thing you can do is start to pay on an old debt. It can actually damage your credit. So be aware. And if you decide to pay it off, remember they bought the debt at pennies on the dollar. So, if you determine it is in your best interest to settle the debt, lowball 'em.

First time buyers for a mobile home? I doubt it. Can you even get a mortgage on those things? Mobile homes suffer from rampid depreciation, just like cars. A permanent structure would appreciate better, but I know just how expensive a house can be versus a mobile home.
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Old 07-26-2006, 01:57 AM   #7
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Credit Counseling Service can help you get the defaults off your back but so many are crooked. Beware. The PA Better Business Bureau can lead you to some honest ones. Best to get them just plain paid off before you attempt a mobile home loan. Do a search for first time home buyers / Pennsylvania / FHA and you'll come up with some mortgage companies that get FHA or State garaunteed funds for first time buyers. $3-5 k will get you into a manufactured house for sure ... but the credit cards have to be resolved Period before anything can be done. Getting a credit company to get you out lowballing can solve the present issue but will mark you for additional credit for 7 years
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Old 07-26-2006, 08:40 AM   #8
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If you got the 2-5K available, pay off tha back debt. That alone will do wonders for your credit rating trust me, If you don't pay it now, the title company will expect you to pay it then. Trust me, been there

The Missus and I bought our house with nothing down. We did have to come up with 2 grand "earnest money", but we got most of that back.

Talk to a good mortgage officer in your area first. They'll let you know what you qualify for, give you an idea of payments, etc., so you'll be ready when you talk to the Realtor.

Based on the short description of your financial situation, I would suggest going into this process looking for your first house. This will not be your dream home. This will get you into the market, re-establish your credit, and get you ready to get the house you really want.
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Old 07-26-2006, 08:51 AM   #9
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Thanks for all of the sound advice everyone. I guess my first step is to talk to a credit counselor.
Just to clarify, the reason I was thinking going with a mobile home to start with is that I can move it to my own land in a few years after I pay it off and then start to build a new house there. I do realize that they deprciate, looking more for a quick way to get out of the city and in to the county. Hate the idea of paying lot rent, but aside from some miracle windfall of cash, seems like the most realistic. And, some trailers can be pretty nice. I know I can't get a mortgage for a mobile home, but if I can get a loan for a few grand, it can be paid off quick, which will help the credit.
I also understand that if I am able to find a home, it won't be my dream home, but I am able to do some remodeling, so I am not too worried about that.
As I said, my first priority is to get out of the city.
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Old 07-26-2006, 10:11 AM   #10
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Go get a FREE credit report and find out what your credit report has in it. Then contact the collection agencies directly and work out a payment plan and pay off the old debt.

I have done this and I have to say, it was the best move I made to clear up my past credit woes.

Also, if you have any current loans or credit cards, you can jack up your credit score by making double payments.

Lets say your loan is 250/month, after you make your monthly payment, send another payment mid month for $50. Your loan/card will be paid off faster and your credit score will jump.

The first step though is to find out whats on your credit report.
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