Need Advice on Contract for Deed....PLease Help!!!!

[Our1stHome]

What is the name of your state? Pennsylvania

Here's my situation: Sorry So Looooong!

I've been working on our credit for almost a year to purchase a house. We opened a secured credit card ( doesn't report as secured ) and financed a van in March. Everytime my broker pulls my scores, she gets ALL zeros I did some research about this and according to Fair Issacks, they can't generate a credit score because I would need to have a possitive open tradeline for at least 6 months. That will be coming up this August We found the house we want but when we tried to get financing we could only get 90% LTV... I have about 3000.00 in savings and that's not enough for closing and downpayment. My broker mentioned something about doing a Contract For Deed and then in November, when our scores should look better, we can refinance the property and pay off the house. The seller wants 76,000.00 and I could give him 2500.00 down and payments of 650.00 a month towards the mortgage. The County assessed the house at 90,200.00. Could we refinance the house in November for say 85,000.00, pay off the house and have the extra money to do home improvements? My broker said that this is done all the time for people in my situation and that it would be cheaper this way because of less closing cost and refinacing requirements are lower. She also said that our APR will be lower, with the loan it would've been 9%.

I hope someone can help me, with this**************...

[jnazareno]

She also said that our APR will be lower, with the loan it would've been 9%.

I hope someone can help me, with this**************...[/quote]


WOW - what's your credit score like (450?) ? 9% sounds like bad credit and hard loan to me.

[Our1stHome]

I'm not generating ANY score, all that comes up is error codes. When I did my research on this it clearly states on the Fair Issacs website that in order for them to determine a score for someone they need to have an open tradeline within the last 6 months. I haven't had anything go on my report in the last 6 months, neither positive or negative. That's why I opened up a secured credit card ( not reporting as secured ) and got an auto loan ( buy here pay here, which also reports to the CRA's ). With this in mind I should be generating scores this month or next because these positive tradelines will be 6 months old by then. I'm one of those people that has never had a loan, credit card, cellphone ( except pre-paid ), so I really never had anything possitive going on my credit reports. That is why my APR is 9% right now. My actual question wasn't my score is was:

Can one do a Contract for Deed for only 3-4 months and then refinance? I'd really like to buy this house, it's within our budget, in the neighborhood we wanted and has large enough for our sized family. The seller is very motivated and is willing to do the Contract for Deed but he wants reassurance that this can be done in such a short time.

Hope someone can answer this.....