Going to be super blunt here about my husband and I’s current situation. We moved to Texas from GA super unexpectedly in 2015 because my MIL was terminally ill. We moved into her house. It was built as cheap as possible in the 80s. We still live here with my brother in law. We currently have about 30k in collections together and more in student loans that are current. We both have a small loan and credit card each that have raised our credit from the 400s to the low 500s. We need a house. DESPERATELY. This house is tiny, run down, we’ve put as much money as we want to spend into fixing it up to make it livable for my brother in law. We want out ASAP so we can start a family. Here’s the obstacles we see when thinking of buying a home:
The debt in collections. It varies in age from 2-6 years old. Some will fall off, some will take years to fall off.
Our credit scores. We’re both just barely over 500 FICO.
Income. This is complicated. We own our own business. We make good money BUT we started in in 2019 and we’re able to write off a lot of startup costs so our AGI is very low according to our tax return. Most everywhere requires 2 years tax returns and then average it to get your income, which will still be low even with the amount of money we made this year just because of the items we’re able to write off.
It seems like no one wants to give us the time of day. I get it, we messed up and we’re in a black hole, but we have the money to get out we just don’t know how. Pay our collections? If so how, there’s SO much mixed info online. Let them fall off? Save up how much of a down payment? Where does our credit need to be? What creative options do we have? I feel like I see people all the time in worse situations than us get a house and I just don’t get how. At this point it almost just makes more sense to buy a house in cash in 5 years.
Thanks for reading and any advice you have!