I would like to tackle this problem from a different angle.
Things that affect your home loan, (assuming that you have perfect credit)
Income:
mortgage payments are usually set to a max of 36% of your combined/total income.
e.g. Combined Income = $100,000/yr,
Max Mortgage Payment = 36% = $36,000/yr or $3,000/month
Total Debt to Income Ratio: The max allowed for this is usually
50% of your combined/total income
DTI = Car Loan + Student Loan + Personal Loan + Medical Loan + Credit
Cards + Mortgage Loan/Rent = 50% of Income
So if your car note+credit card payment/etc are already costing you 30% of your income. Your mortgage amount will now be limited to just 20% of your income vs the original 35%.
Downpayment/Mortgage Insurance: if you make a 20% downpayment you save on a PMI surcharge of $100/month for every $100,000 that you borrow. You could also get a "gift" from your parent/etc for the 20% downpayment, that just sits in your account for 9 months, and then you can apply for the mortgage. This "gift" can then be converted to a lien against the house later that you will have to repay
House Insurance: shop around and see which company will give you the best rate, so that more of your monthly payment can go towards a higher mortgage and less to insurance.
1st Time HomeOwner Program: In
alot of locations county/city government works with banks and non-profits to help 1st time homeowners get a mortgage if they attend a few classes. They might also give you a downpayment grant, or give you a 2nd mortgage with zero interest, that might even turn into a grant if you live there for 10years.
Alternative Mortgage: You could ask your parents/uncle/etc to refinance their house and pull out $200,000, then lend it to you to buy a house cash, but they will have a lien against your house.
Owner-Financing: You could also look into owner-financing, maybe the owner is into
permaculture and is willing to give you a good deal just because you are going to turn it into a foodforest.
Build Slowly with subcontractors: You could buy the
land, then save up and build the house over 5yrs while living in a RV. Then after moving in slowly make additions to it.
Build Credit over a year or two: Do you mean no/minimal credit or do you mean bad credit?
If you have minimal credit then just getting 3 credit card (maybe a secured one) for say $1,000 each. then never borrowing more than 5% aka $50, will give you wonderful credit in just a year. Just keep on asking for credit limit increase every 6 months ($1k then $5k, then $10K, then $15K). In no time you can have a credit limit of $15,000 on each card.
Repair Bad Credit over Time: If you have bad credit vs minimal credit, then you can:
just wait 7years for the late payments to fall off your credit history.
have the credit card automatically pull out the min payments so that you are never late.
improve your credit utilization rate by asking for a increase in your credit limit.
pay down the debt that you own by either making more money or cutting your current expenses.
check and dispute any incorrect information on your credit history, that you cant remember.
Maybe even offer the lender a lump sum money to agree to remove this discrepancy for a lump sum payment. But get everything in legally binding writing.
if you have an outstanding lender that you haven't contacted/made a payment to in 6yrs. Just let it fall off your credit report.
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