Need advice; financing 140k property with 40K down. low credit score

I need good advice. I am currently a tenant in a lease option contract with an acquaintance. Purchase price is 140K. I have 40K to put down. Property is in a moderate to upscale neighborhood with 500k homes 3 houses up the road. Home is a 1981 double wide on a full basement foundation. Home is on 2 nice subdividable acres. It needs cosmetic work and landscaping. (which i am doing). I have poor credit which i can fix with 10k. Fiance has a 600 score, but is self-employed with a 60k back child support showing payment current. Seller wants his cash within 1-2 years. What can I do? KIds are already enrolled in school, it’s a great investment, and now it’s home. Any ideas?


Depending on how horrible your credit is you may qualify for a First Time Home Buyer program like a MyCommunity program or Home Opportunites program. With a sizable down payment like that you will be able to overcome a lot of credit issues.

Can you get an extension on the lease option contract at the same purchase price and terms, so you’ll have time to increase your FICO score for another year? You’ll save money in the long run if you don’t have to finance right now. By getting a lower interest rate later… provided rates don’t skyrocket over the next year, it will make a big difference in the monthly note and fees.

Of course, if you plan to split the lots and sell out soon, you may want to go ahead and close on the purchase. Seems that there are many variables…