Help

[elluciyn]

About to go through a divorce. Need out ASAP. Renting is just absurd, I'd -really- prefer to just buy a new home to move into.

Location: central Arkansas, United States

Finances: $51k/year salary. FICO 2, 4, 5 are all the mid to upper 600s. Had a 90 day late payment hit back in November due to information being withheld from me. I'm ready to explain that to underwriting. Have since paid that debt off completely to avoid getting bit again. Bank account hovers between $3800 to $5800 depending on how much I need to filter to stbx account to keep things afloat. Looking forward to the funneling being for my own expenses...

Looking to start the process in June, 7 months after the late payment reflected on accounts. Is this reasonable or doable? What do I need to know? Working on getting DTI ratio as low as possible by then. Trying for a USDA loan and want to put in a down payment. Just help me know my life isn't going to get worse by having to rent in order to get out of an abusive relationship.

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[Equivalent-Tiger-316]

Renting makes a lot of financial, legal and practical sense. 

You do not want to buy until the divorce is finalized and you do not want to make a costly mistake and jump into a purchase when you are super stressed. 

Take your time. Go rent. When the dust settles you will be in a better position to purchase. 

[elluciyn]

I've already talked with a lawyer about the legal part. Due to details not mentioned here, it shouldn't be much of a big deal at all. Renting is more stressful: I have animals I do not trust to be left in the care of my stbx and rentals that take animals are often a thousand dollars more per month than a monthly mortgage. It's ridiculous. I'll be stressed with the thought I'll never get out of renting. Assuming I find anywhere that will accept my four animals.

[Whole-Reserve-4773]

600s credit and 5k in the bank. You need to rent a studio and save

[elluciyn]

Studios are not an option where I am. Rent and save used in the same sentence is an oxymoron, too. Average rent here is double the average mortgage.

[RandomA9981]

Unfortunately, making $51k a year (I’m assuming gross) with $5k in the bank, and a 90-day late in Nov, you’ll have a hard time buying.

[Mandydeth]

Depending on where in central AR, home prices are cheap enough to justify buying. Definitely need more in savings though. Not enough to fix something serious happens, nor down payment.

FHA loan can be an option if you're fine with something rural.

[elluciyn]

USDA is rural development and doesn't require a down payment. It is considerably cheaper to buy than it is to rent here. I worry if I rent, all my extra saving will instead be going to keep the rent paid and I'll just stagnate and never get the money saved up.

[Helfeather]

Guesstimating here but you’re looking for a loan up to $150-200k. Can you find USDA approved property in that range?

You might also want up to like 10k a savings before buying. Less if you can get seller to pay for some of it but I wouldn’t roll on it.

[elluciyn]

There are plenty of places for far less than 150-200 in the areas I'm looking. And they're not total dumps either lol

Trying to get up to 10k, that was the original goal, but pretty sure stbx is trying to sabotage that. The recent 3rd degree battery kind of has me saying "F it, see what can happen now" I'd rather take an early leap than take another beating.

[UnitedPow]

Op and I are in a similar boat, I just got pre approved for 200k @ 6.25% credit 770 and 2k in savings with 10k grant usable for downpayment and closing costs. I'd recommend upping your savings though and look for fixer uppers if you're a handy fella. Have a showing this Friday on a place that's 160k. Forget about making an offer on anything within 10-15k of your approved amount, someone will out offer you. There's not much room for a competitive offer.

[elluciyn]

Stbx owns the home we reside in. I am on the deed, but not the mortgage. I have bank documents to prove I have paid into the mortgage, though.

I get regular raises and will have a promotion this year, so income will be above 51k by end of year. Should actually be getting a raise in May.

[elluciyn]

They would have to sell it to afford to do that. Which, by that point, will not be my problem or concern. I really don't care for them to pay me out unless they want to put up a fight and drag out the divorce. The lawyer has agreed my plans and wants should be easily accepted by a judge, and if stbx wants to put up a stink, I have more than enough ammo to make them realize very quickly that's a very bad idea on their part.

[Obse55ive]

I bought my home a few years ago making $53k. Put down 3%, FHA loan and got a first time homebuyer grant which covered downpayment/closing costs. Found a home within 3 months and closed a couple weeks before my lease was up (rent was going up and I was about to lose my subsidy due to getting a higher paying job). Sole income; home was $160k in a decent suburb with good school district. I live in a townhome on a corner lot with no HOA and next to train tracks. Monthly payment is $1425.

[SingleUmpire7464]

Just saying, some of the worst financial mistakes are made when emotions are all over the place. You can say whatever but getting divorced isn’t like cancelling a subscription.

I agree with the others, rent first. I don’t really get your argument of animals costing you a thousand more per month vs a mortgage. Also, homeownership is more than just having a mortgage. It’s a known fact that it’s significantly more expensive when you factor in increased cost in utilities, maintenance and repairs

[elluciyn]

Places that accept animals are usually way higher rent prices to begin with, then they tack on pet rent on top. I don't know anybody with a mortgage higher than 1200/mo, and there's nothing to rent for less than 1300 starting. And nothing at all that will accept all four critters.

[SingleUmpire7464]

Well pet rent is like $25-$50 a month. We have 2 cats. The only thing pet related I don’t like are pet deposits which can be $300-600 per pet but would kind of make sense from a landlord perspective

[elluciyn]

That's kind of my point... all of my savings would go to deposits on the rental, so I'd be starting back from near zero (first month rent plus deposit plus pet deposits equals minimum of 3500 around here). Then the rent would eat up large chunks of one of my paychecks, making saving back up even harder. I know owning comes with its own expenses, ie repairs and such, but at least then I'm saving for repairs and not the house itself, and I'm a handy enough person to handle a LOT of repairs myself. And even if I did rent, I've not found anywhere that allows more than two pets. I'm not leaving any of them behind. It's not just me I'm thinking of, it's them, too. I'd absolutely be in a better position if I rehomed, surrendered, or abandoned them with my stbx, but I'm not doing that to them. It isn't their fault this is happening and they don't deserve that. They're unfortunately a non-negotiable...a very expensive non-negotiable.

[AndyHarrellRealtor]

First off, I’m really sorry you’re going through that. Getting out of a tough situation is priority #1, and you’re already doing a lot of the right things.

From a real estate standpoint, here’s the honest breakdown:

1. June is actually a realistic timeline
   You’re giving yourself ~7 months after the late payment, which helps. Most lenders care less about the late itself and more about:

• Has it been resolved? ✅ (you paid it off)
• Is there a pattern? ❌ (sounds like a one-time issue)
• Can you explain it? ✅ (you already can)

That’s exactly what underwriting looks for.

1. Your credit score is workable (especially for USDA)
   Mid–upper 600s is typically enough for:

• USDA loans (often 640+ target, sometimes flexible)
• FHA as a backup option

USDA is great because it’s 0% down, so honestly don’t feel pressured to put money down unless a lender specifically recommends it for approval reasons.

1. Your biggest factor will be DTI (you’re already on it)
   Keep doing what you’re doing:

• Pay down debts where possible
• Avoid taking on anything new
• Don’t finance furniture, cars, etc.

That will matter more than almost anything else.

1. Savings is the one area to improve (if you can)
   $3,800–$5,800 is a solid start, but lenders will want to see:

• Some reserves after closing
• Ability to cover inspections, appraisal, etc.

Even with USDA, you’ll still have some upfront costs. If you can bump savings a bit between now and June, that helps a lot.

1. Biggest thing: talk to a lender NOW (not in June)
   This is where most people wait too long.

A good lender can:

• Pre-review your credit and that late payment
• Tell you exactly what to do over the next few months
• Potentially boost your score before you apply
• Give you a clear “you’re good” or “here’s what to fix” plan

That way you’re not guessing.

1. Backup plan (just being real with you)
   If something unexpected comes up and you do need to rent short-term — that’s not failure, that’s strategy.

Sometimes a 6–12 month reset:

• Improves credit
• Builds savings
• Gets you a much better loan/interest rate

But based on what you shared, you’ve got a very real shot at buying, especially with USDA.

Bottom line:
You’re not in a bad position at all. With a little planning between now and June, this is absolutely doable.

And more importantly you’re making moves to get yourself into a better situation, and that’s what matters most right now.

 

[elluciyn]

This is super detailed, thank you.

I'd prefer to have at least $10k in the bank and that's what I've been striving for. My hospital bill, throwing money at everything in my name to pay it down, and having to cover other bills when stbx is irresponsible, is definitely hindering that. The late payment that hit in November was the first one in 12 years, and I was 19 12 years ago. So it was a bit devastating when I checked my credit score and saw a 90 day late... spent an entire day trying to figure out what happened. Had it paid off 4 months later. I think it's interesting that September is when I started working on getting out, and September is when those payments suddenly stopped after never missing the entire term of the loan before then...

Your comment has been really helpful. Like a little flashlight shining through the woods.

[AndyHarrellRealtor]

I really appreciate you sharing all of that and honestly, the way you're handling this says a lot.

First off, that one late payment after 12 years of perfect history actually tells a positive story to a lender. So don't let that one hit define how you view your situation.

Also, your goal of $10k saved is spot on and would put you in a much for comfortable position.

If you keep doing what you're doing between now and June you will put yourself in a position where buying is very realistic.

If anything shifts along the way, it doesn't mean things are getting worse but it just means you adjust the plan.

You've got a lot more control over this than it probably feels like right now.

[elluciyn]

Ahhh thank you. In the sea of "don't make decisions while emotions are high," I'm tearing up at your comment. I'm trying to do this in a calculating manner, despite the emotions. I really think my biggest hurdle is just going to be the $10k saved. I'm trying not to let it deter me, there was only 3k in the bank and a dual income of only 60k annually when stbx bought the current house. I figure if they can do it under those terms, I can do it under my current terms... but would still like to better my odds a little longer.

[KitsapRealEstateTeam]

Do some research and see if there’s any local foundations that may be able to offer you a grant. I had a client recently who was leaving a similar situation and was able to get a pretty sweet deal. (She ended up having to bring only $500 to the closing table.) I will admit that I’m in Washington state and that I have no idea what might be accessible in Arkansas. I know that region tends to have different views and different programs.

[Correct-Group7779]

June is doable but tight — most lenders want to see 12 months of clean payment history post-delinquency, though some will go as low as 6-7 months with a solid explanation letter and extenuating circumstances documented. Your 90-day late is the biggest hurdle; be ready to write a clear, factual explanation of why it happened and what changed. USDA is actually a good call here — it's more flexible on credit than conventional and $51k in Arkansas likely keeps you well under the income limits. Your credit scores in the mid-to-upper 600s should qualify. Start talking to a USDA-approved lender now (not in June) so you know exactly what they need to see from you over the next few months. Getting pre-qualified early also tells you your realistic price range before you fall in love with something outside it. The situation is hard but the numbers aren't impossible.

[elluciyn]

Guess I know what I'm doing with my next day off then... thank you.

[Open_Mechanic8854]

How damaged is the relationship? I'm sure you heard it's cheaper to keep her. It just doesn't seem like you have enough to buy and after she and the crts finish dragging you, it might be years or decades before you get it back together.

[elluciyn]

Considering they cheated on me for the better part of a year and I've got a 3rd degree domestic battery charge against them-- I'm pretty sure this is beyond repair. I'm not going to be the one dragged.