Home Sweet Home
Some of the people who have gone through foreclosure in the last few years are thinking about their next home. They will be able to buy again but as a rule they will have to wait seven years.
The credit score will have to come up too. At a minimum it will need to be in the 620 to 640 range but 700 or above would be much better for getting a decent interest rate. That is how things are now which isn’t to say they couldn’t change.
If you have been foreclosed upon the first priority should be lowering debt and paying bills on time. The second priority should be putting some money aside for a down payment. A few years ago it was relatively easy to buy a home using little or no cash but that isn’t the case today.
The minimum down payment for most borrowers is 3.5% and that is on an FHA loan. For the average home in St. Paul at todays prices about $5500 is needed in cash. There are down payment assistance programs but they are not available to everyone.
Renting is not always a waste of money especially in cases when shorter term housing is needed. Renting offers more flexibility than ownership does. It isn’t a waste of money when the goal is to save money, pay off bills and save up to purchase a home.
Yeah, unfortunately a lot of folks are in this boat. Setting money aside for a down payment is good advice.