So my fiancé is trying to buy a home. This is a rural home that’s extremely inexpensive. It’s only $79,000 and we have about 20% cash to put down on it right now, leaving it down to approx $65,000. 3br2ba 1400sqft in a rural town in Kansas, built in 2005.

Here’s the problem:

His credit is terrible due to a credit card a year ago. He has the entire balance of the card literally laying around for him to pay them. However, even after calling them (the collections place) a dozen times to try to figure out where to send a cashiers check since they never gave us info... we can’t get a hold of them. At this point we’re having to contact all three credit bureaus to make a report and have the negative report removed from his credit for faults on the collections place in the meantime.

Ugh. Rentals are excessive in the area we live in and this rural town is what we’re looking for. However, it’s almost impossible to find rentals in rural towns around here.

My question is, will this ruin our chances? Our income exceeds the debt to income that they look for and he has a steady job, so that’s good. My credit is perfect but I’m a SAHM.

Any suggestions on where to apply for a loan in our case? We’ve owned a home before (we did a house flip) so we can’t do a first time homebuyers loan.

Rock and a hard place guys! Help!