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I am a very recently divorced single mom. I own my small farm which we cannot live at due to my ex-husband's continued harassment.

I have the farm for sale but so far all interested parties want/need me to carry a loan with 10-15k down.

In the meantime, I have found a wonderful small home in a great school district (my youngest son has some disabilities that make comparable schools very difficult to find). Within easy access to a multitude of career opportunities for myself, with one current job offer!

With zero individual credit history, bad joint credit history, no long term employment (stay at home mom who was homeschooling), is there ANY rock I can turn to purchase this perfect $50,000 home?

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  • What does "joint credit history" mean? I'm not familiar with such a concept, to the best of my knowledge if you signed/cosigned on a loan - it is in your credit history, there's no "joint" credit history.
    – littleadv
    Commented Jun 20, 2014 at 16:09
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    Any joint debts that were taken on when you were married would independently report on your credit history and your ex-husband's credit history.
    – Noah
    Commented Jun 21, 2014 at 1:16

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I am sorry for your troubles, but impressed with your problem solving skills. Keep going, things will get better.

Your best hope is to find a place that does manual underwriting. If they do computer generated stuff, then you will be kicked for sure. If you can show 20% down, and have some savings, and have some history of paying bills, then you might be approved.

Here in Florida, RP Funding still does manual underwriting. Another one that is mentioned is Church Hill mortgage. Also you might check with local credit unions.

Of course your best bet to be approved is to be open and state upfront the challenges.

You have to find someone that has the ability to think, has the ability to see passed the challenges, and has the authority to do so.

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  • Hopefully there are support groups in the area for divorcees or single parent families that might have good information on finding someone with the ability to think.
    – MrChrister
    Commented Jun 21, 2014 at 15:19
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No, it is never impossible to get credit so long as there are no price controls or quotas.

In most of the United States, the impetus for housing is so strong that it's one sector of credit that has nearly no price regulation, price in this case being interest rates.

Corporate banks will not touch you now because Dodd-Frank now makes them liable to you and investors if you default on the mortgage. Also, Fannie & Freddie, who ultimately finance most mortgages in the US now require banks to buy back loans if they fail, so banks are only financing the most creditworthy.

All is not lost because markets are like rivers if not fully dammed: they find a way through.

In your case, you can get a fully-financed mortgage if you're willing to pay interest rates probably double what you could otherwise get in the market with good credit.

If the foreclosure process is quick and benefits the lender more in your state, the interest rate will be even lower.

Your creditors will most likely be individuals you find at mortgage investment clubs and religious institutions. If you shop around, you'll be surprised at how low a rate you might get.

Also, since the cost of your prospective home is so low, it's very easy for an investor flush with cash and few investments to take a flier on a mother committed to her children who only needs $50,000.

The FHA has been vastly expanded, and since your individual credit is clean, there may be a chance to get financing through it, but be prepared for red tape.

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