Bad Credit, Low Income. Options for Homebuying?

4 Replies

Best option FHA? I'm just trying to build up my credit so I can qualify for it. I'm in an abusive and toxic home situation so I'm trying to get a home fast. I'm not sure if I will qualify for FHA. What other options are there out there for people with bad credit and low income that are feasible options that I'm not aware of?

Your best option is to go rent a place then work hard to build your credit and income over time in a realistic manner 

Yeah I submitted rental applications but didn't get in anywhere. I guess it's because my credit is bad and I'm so behind on missed payments. Just trying to get it all together, catch up on payments, build my credit and get a home through FHA. The plan is to live in one of the units, and rent out the others. I never want to be in this financial situation again.

Step 1: figure out why you have bad credit; some fixes cause immediate improvements like a collection. If you have one pay it. Other simple ways are pay your credit cards off but leave the lines open. 

Step 2: figure out why you have low income. What can you do in the short term to improve it to help with step 1 above. What can you do to drastically improve it over the next several years.

Step 2: learn about personal finance and investing. Read lots of books budget your money, track your net worth, change your mindset.

Before jumping into owning a home I would find a very affordable rental living situation and work on paying off your debt, saving money, and overall developing good financial habits. After establishing that then look into buying a home.