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How I bought My first Home Near Smethport in Pennsylvania - Need help, buy a home in PA-Buying a House with bad credit

Updated on October 19, 2013
kmackey32 profile image

Kristie has worked in a nursing home for the last 12 years. She has held titles such a director and assistant director of activities.

How I bought My First Home with Bad Credit

Buying your first home is not easy when you have bad credit. I will explain to you the steps I took to purchase my first home. This process took me about a year. With the right bank you too can buy your first home with bad credit. It really is possable to buy your first home with bad credit even if your income isn't high. There are many sites out there promissing to give home loans to people with bad credit or low income. I tryed many of these online companies but all failed to approve me. My FICO score at the time was approximatly 500-549, which is pretty bad and I only work part time at a nursing home.

 A persons FICO score is used to assess a persons credit worthiness based on there current accounts and credit history. Morgage companies use your FICO score in there decision of whether they will offer the loan. FICO scores range from 375 to 900 points. FICO scores that are between 620 and 650 are average FICO scores. My FICO score which was around 520 was in the low 5% of the country therefore I was considered a high risk to all banks.

Three weeks later after issues with my landlord I found a house in the paper. The add listed the home as 5 bedrooms for $14,000. I phoned the the owner Mr. Skyver that day and he met me within an hour to look at the home. Mr. Skyver was skeptical because he had almost been ripped off by some individuals that had looked at the home prior to myself. Apparently these people tryed to move in without having any money for the house, they kept telling Mr. Skyver they had the money in the bank and would give it to him once they moved in. Thank goodness Mr Skyver didnt fall for the cons. 

The home was wonderful, it just needs updated. The owner also had a morgage at Hamlin the same bank as I. Mr Skyver stated his morgage payment was around $130. Wouldn't that be nice I thought. I was so excited yet worried at the same time because I had bad credit and I know how hard it had been to recieve a morgage with bad credit in the past.

First Step in buying a home with bad credit

The first step I took to buy a home with bad credit was to establish myself with the bank I wanted the home loan from. I recieved a checking account at Hamlin Bank, in Bradford P.A. A short time later I saw a car I wanted to buy so I visited a loan officer Lance out of Smethport P.A, a friend had recommended to see what he could do for me. I had bad credit so I was unsure if he would give me a loan. I informed him I had collaterall, a title from another vehicle, I would put up. Lance pulled my credit, which was bad, but said, he was willing to help me to get some good credit established. Lance gave me a 3,000 loan. I had been paying on the loan for approxamitly a year.  

After about a year my brother had another car in N.C., which I had to have. I went to Lance and showed him pictures of the Ford Focus I wanted. The car was beautiful. It has air bags and an awesome paint job.I had never missed a payment or been late on my first loan and I had also payed an extra 1,300 the day before I went to ask Lance for another loan. That day he cut me a check for $4,000, with no credit check. Lance stated he would tack the loans on to each other and when I sold the first car I could put the money on the loan. My loan went from $130 to $190 a month.

My home with bad credit

I scored my home loan with Bad Credit

I phoned Lance at Hamlin Bank the very next day. Lance stated I would have to see Mr. Jackson out of the Bradford PA branch since I lived in Bradford and the home was located in Bradford. I walked into Mr. Jacksons office the next day and sat down to tell him about the home. Mr. Jackson was familiar with the house as he was the one who gave Mr. Skyver the loan a year prior, and stated it was a very good investment.  I informed Mr. Jackson I had my vehicle loans through his bank. Mr. Jackson pulled up my payment history. Mr Jackson then turned to me and said he would be happy to give me the morgage so long as I had 20% for a downpayment. He stated he didnt care about any medical bills on my credit an as far as any other negative payment because my credit was good with them. I then sold the first vehicle that same week and went to Lance in Smethport who told me to keep the money, he wasnt worried about the loan I owed him because he knows I will continue to make my payments. Lance told me to go get my home, I was Very excited.

The owner of the house had me go to a notary and sign a purchase agreement. He stated to start packing and move in. Larry had talked to Mr. Jackson at Hamlin and I signed the purchase agreement so he wasn't worried about getting the money from Hamlin. Everything was falling into place. We closed on the home a couple weeks later and with bad credit.

Below are some of the rooms I have worked on since buying my home. Because I have such a low morgage I can afford to fix up the house.

daughters room
daughters room
New porch roof
New porch roof
Sons room
Sons room
Porch roof
Porch roof


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    • kmackey32 profile image

      kmackey32 6 years ago from Pittsburgh PA

      The best place to get a morgage would be at Hamlin. I got my first loan at the one in Smethport.

    • profile image

      help 6 years ago

      i need a house or apartment im looking to buy but i would like to even rent in smethport pa

    • kmackey32 profile image

      kmackey32 6 years ago from Pittsburgh PA

      I moved in before closing and it saved me money.

    • Don Simkovich profile image

      Don Simkovich 7 years ago from Pasadena, CA

      Good Hub. I almost sold a home to a buyer with a FICO score like yours. She wants to rent long-term and possibly buy. I'm thinking of giving her an equity position in the house.

    • profile image

      darrionfrnk 8 years ago from UK

      well if you are looking for finance then there is no need to worry as you will find many loans options that will offer you credit on there risk by charging little bit extra rate of interest.Some loans option that you look for is bad credit loans, same day bad credit loans as per your requirement.

    • 49lart profile image

      49lart 8 years ago from Edinburgh, Scotland

      When I bought my first home, I used self certification because I am self employed and didn't have 3 years of accounts.

    • Cheeky Girl profile image

      Cassandra Mantis 8 years ago from UK and Nerujenia

      I am a home owner, and I own my apartment. I am glad as hell I am not paying off a darn mortgage now, I have sympathy for the gazillions of home owners out there paying off that home bill! It's a ball and chain around the neck! Great hub!

    • puter_dr profile image

      Mike Bouska 8 years ago from Midwest USA

      I am glad the dream of home ownership worked for you. One caveat I would offer for others. Never, ever move in before closing.

      If you move in before closing, then it could give a dishonest seller leverage to make you pay additional costs. There are also situations where people sell homes they have no legal title to, and moving in prior to closing could cost you big.