my credit score is 635 and I have $3500 for the down payment

[Dana Montfleury]

Hey guys I need some advice, I am very new to this stuff and have been researching ... my uncle who is my mentor has been really occupied lately and can't help at the moment so here it goes: I am wanting to purchase my first home 3 bed 1 bath but I don't know what I should do, I started viewing houses but they seem in very bad shape I'm talking: moldy smell inside the house, not attached to a sewer, roof and flooring are uneven ,way crooked walls and so much more... so much so that neighbors are coming out to tell us not to buy. I just want to start with my first home, live in one room and rent out the rest to roomies, or live at home with my parents and still rent out to a family. I live in a college area so I know that won't be an issue. my credit score is 635 and i'm planning on getting a secured credit card to build it up and add diversity to it. but other than that i don't know what else to do I heard about fha loans but what do i need to qualify with $3500 down what will I qualify for, I have $36,000 in school loans that i'll start paying for in two years when i graduate ... what should i do to get a loan, I went to my credit union and they want my score higher..are there other loans out there who would qualify me... I looked at home owner financing on google but there are barely any in utah county. thanks

[James Wise]

My advice would be to get that score up a little higher and build up some more savings and then live in the 1st property that you buy, while renting the other rooms out. If you live in it you can get an FHA loan which has lower credit qualifications and youll only be required to but down 3.5%...I dont know what your income level is but im guessing since your a student and the house you described doesnt sound too fancy your looking for low priced homes. It can be difficult to find lenders willing to write loans for under 50k. You will have the best luck with a smaller community bank, then say a big lender such as Quicken Loans.