Any lenders First time home buyer.

you have a challenge ahead of you.. One big mistake you're doing is trying to settle debt on your own, rather than using a professional.... in some cases, you can do more harm than good... Most competent credit restoration companies will negotiate "payment in lieu of deletion".. Meaning you agree to pay and they agree to delete the bad debt altogether... not show it paid or settled, but deleted.. When it comes to credit scores, there's nearly no difference from a paid collection vs. a collection.. The fact that your account went to collections is what hurts your credit.. the fact that it's paid or not has little to do with your score... click the " Find a lender" Tab above and type in your zip code.. You can also Google "Mortgage broker <zip code>" and search through the list for someone local.. a good mortgage broker will have a good credit repair guy on his team as well... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Tracy, I would be happy to take a look at your qualifcations as far as purchasing a home. Word of Advice, hold off off touching any of these old debts until you have someone review the credit with you. On older chargeoffs and collections that havent reported in a while, making payments or settling those debts and having them update on credit may do more harm than good for your credit in terms of score.Best of Luck!

There is no way to answer your question without giving a lender a full application. But generally speaking, paying off old collections, then having a one to two year clean credit history with a few active accounts should always put you back into a credit position to buy a home.

Someone can help you so contact a LOCAL lender and if your credit has some challenges the LOCAL lender will be able to help you. Ask them if there are any grant monies available in your area to help with the down payment.

Ken gave you good advice above, don't assume you know what it will take to improve your credit profile - and don't listen to anyone who isn't a professional (and not all professionals are as knowledgable as others). You should assume you will need roughly 3.5% of the purchase price to get a FHA loan but you may also be able to utilize the Missouri housing program for first time buyers - depending on your qualifications. That woudl reduce the amount you need for a downpayment, but cash in the bank and other savings really helps strengthen your application and makes loan approval much easier - even if you aren't using it to purchase the home. You might also check out my blog on this site "First Steps". Good luck from an old KC guy.

Tracy, I would be happy to take a look at your qualifcations as far as purchasing a home. Word of Advice, hold off off touching any of these old debts until you have someone review the credit with you. On older chargeoffs and collections that havent reported in a while, making payments or settling those debts and having them update on credit may do more harm than good for your credit in terms of score.Best of Luck!Andrew Alfonso 800 813 3291

The answers below are correct - you should call a professional to help you settle old debt. Settling old debt resets the clock - old negative debt that didn't have much impact is now treated like new negative debt and hurts your credit more than doing nothing. Sound illogical I know but those are the facts. Call a local mortgage professional in your area. There are a couple that answered your questions. I know they can help you make good decisions - and be prepared to give it some time. It takes a while to get your credit up enough to get a mortgage loan but in the end the time will go by quickly and it is the wise thing to do. Good luck.

I would be happy to share a reputable credit repair agency with you. If I can be of assistance, please let me know.Thank you for using Lender411.

If you're 62 or older, and have 38% down, you can purchase a home with the FHA-insured Reverse Mortgage program, and won't have to worry about damaged credit or employment.