Mortgage Loans topics

Buying my mom a condo

sekada — Mon, 20 May 2013 14:20:23 GMT

I think I might be FINALLY ready... what do you think are my options, if any?

Salary: $100k-$105k gross depending on bonus

Mortgage on primary residence: $135k

Debt-to-Income: Officially, it's 22%... but I have a loan from my own 401(k) that I'm using to fix up my primary residence, which means for the next 5 years I carry $400/month extra in payments. This doesn't show up on my credit report -- with it, my DTI would be 27%. Also, in October I'll finish paying off my car. At that time, my DTI without the 401(k) loan showing up will be 18%, and with would be 22%.

Note about the 401(k) loan: It's not the usual set-up in which, if I leave my job, the whole thing would become payable. As long as I don't go more than 3 months delinquent on the $400 payments, it will remain a loan installment. If I go more than 3 months delinquent, then it would become a withdrawal and be taxed.

Anyhow: FICO score is 666, should jump a bit since I just paid off $5k in CC debt and also got an unrequested credit limit increase for $2k. So I now carry about $4k in credit card debt, out of a possible $22,000 limit.

My score is low because: I just paid off a federal tax lien in 2010, and it's still lingering; I had a tough time financially in 2006- 2008 and was late with 3 car payments and 2 CC payments, but paid off the loan on that car in 2008 and haven't been late with anything since 2008; and I have a medical collection for $64 that I'm disputing because I paid the bill on time, and the doctor's office lost the payment record. I have the bank record of the payment going to them, so should be able to get that removed.

However, I just found a condo I'd love to buy, and am not sure I want to wait 2-4 weeks for my score to go up. It's a Fannie Mae foreclosure property, and the asking price is about $35k below appraisal. It's pristinely clean and in a great area... what do you think are my chances for getting a mortgage for $135-$150k? Asking is $150k but I hear that Fannie can be somewhat flexible in negotiations. I'd love to put just 10% down so that I can save some cash in case I need a new car (100k miles) or my 30-year-old house needs something, etc.

Do I have a shot at getting a mortgage on a second property, with a decent interest rate?

How to get things removed

webhopper — Mon, 20 May 2013 11:20:59 GMT

Moved to Rebuiding Your Credit

NACA Loan Journal

Chris3k2 — Sun, 19 May 2013 21:20:17 GMT

I finally started my NACA journey. This is where i will try to log everything down so everybody can get an idea of what to expect or at lease how my experience goes. Since I know there are a lot of people who have had a bad experience with them. I hope it works out for me. Oh and I am in Columbia, SC. Wish me luck

5/18/2013 - Had my first NACA Workshop w/ fiance. Lasted for about 2 or 2 1/2 hours. There were about 30 or less people there. It was really informative and they presenter really knew her stuff. I tried to ask if we could request our MC and if so could we get her but she said that can't happen. She was really good so i'm hoping with being in a smaller state it will help with having a better experience and not have a slack MC.

Need advice .., Almost ready to start the paperwork

trantimes — Sun, 19 May 2013 20:36:42 GMT

I've been using this forum as a compass in helping me rebuild and GROW UP.

I pulled my Credit Report from Myfico.com today

Transunion 727

Equifax 716

I have three credit cards with a total balance of $1.5K and a credit line of $22k.

One Auto Loan with a Balance of $16K with a monthly payment of $507

I have had no late payments in over three or more years on any of my reporting accounts.

Now the bad news.

I have Santander reporting on my transunion account as a $0 balance "charged off as bad debt" should fall off in August 2013.

Tax lien that was paid off in 2007 but has been reporting on my Transunion / Equifax credit report and should fall off July 2013

Chapter 13 Bankruptcy that was filed in 2006 but was dismissed.

The bankruptcy is not being reported on my Experian and Transunion Credit Report.

Equifax it shows dismissed so it will not fall off until Feb 2015.

My experian credit report is virtually clean.. no reporting of Santander, Bankruptcy, or Tax Lien.

If I had to to guess the Experian credit score would be the highest with the Transunion score being the mid.

I want to purchase a new home and wanted to know if there is anything that I could do to clean up my credit report? I don't want to wait for the tax lien / santander reporting to drop off the credit reports. I'm wondering if the Mortgage Companies would take issues with this though.

A little bit more about me.

My income is over $250 K a year (self employed) and the business has been in existence about 1 yr 8 mo.

Before I started my own business I was in the same line of work for over 6 years.

I have about $50K to put down on a $350K - $450K home. Plus I own land worth $55K that can be used to help secure the loan.

My wife does not work and her credit score is >750

Do you think I would have any issues securing a Mortgage? How does a mortgage company view not have the same information across all three credit reports especially bankruptcy and tax lien? Will the mortgage companies force me to deal with Santander (not that I haven't tried in the past on numerous of occasions)

Thanks in advance

What you guys think?

amg550 — Sun, 19 May 2013 19:47:22 GMT

Just looking for some opinion on what you guys think of my FHA application

- Got pre-approved by DW ( Desktop Underwriter)

-Currently have a accepted offer

-paying 10% downpayment

-paying off my car loan to have 10 remaining payments when I get my condition from UW ( A bit worried of paying off a large amount and not to get approved so I will wait for the condition)

-waiting on rapid rescore on accounts I paid off but were not accurate on CR

-I assume I am still in processing

-3-4 years of same management company (landlord ) never late

Credit scores are in 690 712 720 (NO LATES)

BK discharge back in 2008

Foreclosure transfer of title 2010 (primary) and 2009( investment property)

Purchase amount $170,000 DP of 35k with closing (10k reserves 25k gift)

I am a self employed did provide 2 years of tax returns ( sole prioporship )

Would like you input of what you guys think or any advice on what condition I will possibly get from UW .... LO says I am in good shape but you know how LO are , Thank you all in advance.

What do I need to do to qualify for a mortgage?

confidence974 — Sun, 19 May 2013 19:21:21 GMT

so here's some info on me,

credit from myfico 602 equifax

income 64k plus, commissioned based with w2

debt to income 13% maybe 2000 outgo with close 7k incoming, yeah I know the numbers don't match but it is commissioned based so its variable.

one year on the job but 2 in the field of employment

not much saved because i spend a lot on frivolous things. restaurants and electronics.

living in new mexico. looking to purchase in a year or two but sooner if the right opportunity presents itself.

What do i need to do to get into a first home?

What scores could BB & T use?

angelic159 — Sun, 19 May 2013 18:03:47 GMT

I am getting ready to apply for a mortgage with B B & T, as they have a program for down payment assistance. I was reading through there faq's and saw that their credit scores range from 300 - 900. I am not sure what model this could be as fico's range from 350 to 850. Any ideas?

DTI

kerbear1969 — Sun, 19 May 2013 17:12:12 GMT

What is the current DTI ratio guidelines now that the mortgage companies have tightened their belts?

Starting the process -help needed with derog items.

qtssima — Sun, 19 May 2013 16:53:05 GMT

Have spent some time on these forums trying to clean things up and it is getting better. We are looking at houses and I have a few questionable items on my credit that I am unsure how to deal with.

Credit. My credit scores are TU 645 EQ 650, my boyfriend is TU 670 EQ 685. He has one negative, a medical collection that he went to court for and the insurance company ended up paying -he has not pulled new scores since then, I have asked him to, I think he would be in the 700's at this point. Plus, he opened a new auto loan since then and has over 6 months of on time payments. On the other hand, I have late pays and a few charge offs, all are from 2008-2009. I have one collection account that I have tried to remove. I don't know how much my credit would go up from removing it at this point as it has been there since 2011. It is very frustrating but I think the damage is baked in to the numbers. I have boosted my credit score by correcting some inaccuracies and opening a secured credit card. I recently (3/13) got a new auto loan that has yet to report. We both have credit going back for over a decade.
Income. I make $110K a year, my BF abut $160K
Source of income. Employment -we are both commissioned salespeople.
Monthly debt payments. I am paying on two closed credit cards, a student loan, and have a car payment. My BF has two open credit cards and a car payment. We are right at 35% DTI.
Employment All W2 income. We have both been in our industry for over a decade. I have been with my current employer for 7 years, my BF longer - I think 11 years.
Assets/Reserves. We have about $120K in reserves. We plan to use about $70 as a down payment. I should state right now the majority of this is in my BF's name, if that makes a difference.
Location. We live in WI -Dane County
Property. We are looking at a singe family home - prefer newer construction.
Value. We are looking in the $300K-$350K range
Occupancy. Primary residence
Transaction Type. New home purchase. We have both owned a home before, so no first time homebuyer programs will apply.

Many years ago, I was a loan processor so I kind of know what gets looked at, but the rules are different now so I just want to know if we should try to get pre-approved or if there is anything additional I should try with my credit before that? I also am wary of "poking the bear" and something getting updated negatively, so I want to be very careful how I proceed.

Thank you so much for the help.

My Journey/FHA 203k Questions, Sorry for the Longishness!

redbone0528 — Sun, 19 May 2013 01:47:03 GMT

Good evening all!

I am a frequent reader, infrequent poster. I just wanted to share where I am, and see if any of you have an idea of where I go next! I started a few years ago with a sub-500 score across all three bureaus. After some very hard work, and consistent payment of new cards, I am now at 667, 677, and 717 across all three, according to my broker. I am doing an FHA 203k, gah!

I went through a preapproval a couple of months ago, just fine. Lost a house or two due to the the market quickening up in my area. No biggie, they were houses that I was on the fence about. Not sure that I wanted them, but pissed that someone else made the decision for me. That was until I saw THIS house...

After five minutes I knew it was mine. Older, with character. I saw more newer builds than I can count, and there were about 6 floor plans between the lot of them. I started to confuse listings because they all seemed to be the same house! This one, I felt the spirit of the house the minute I walked through the door. Older, yes. Repairs needed, yes. Mine, hells yes! I connected immediately, and it was the first home that I wanted to make an offer on the same night.

Long story short, I put in an offer on the bank-owned property. As always, they shot back submit your final and best offer. I did, at asking with half of the closing versus the full closing I had in the initial offer. It was accepted, yay #1! The property obviously needed a bit of work, not a ton. My offer was at $99,900. Excellent price for 2100 sq ft, three season room, and beautiful yard, especially for the area. I expected to put $15k-25k in repairs or updates, which is totally in my comfort zone. I was preapproved for up to $150k.

Now I am in the hurry up and wait phase. I had my inspection done on Thursday. Stuff needs to be done, but nothing more than I expected. Meeting with contractors on Monday and Wednesday. According to my broker, my file is ready to go to the underwriter, and is just waiting for my improvement estimates. At this point, I have no idea what comes next??!?!

I have no rate, no loan amount (due to waiting on construction esitametes), nada. I am an internet junkie, and I have read for literal hours on the home buying process and the 203k loan. I am just on pins and needles waiting for something else to happen! I just want to know that we can move forward, and that the home is mine. I know there is no way to promise that. I have read the horror stories, people denied two days before closing. My credit is pretty clean, 2 collections or less across each bureau, all paid and 5 years or older. Paid state tax lein on only one report, Experian. Immaculate pay history for over 5 years. I am just freaking that some zombie debt will appear out of nowhere. I am opted out and I hope that this won't happen, but my hoping won't stop it if it does.

I am also having issues with my down payment. Not really issues, but issues all the same. I don't have the full amount in my accounts at this point. But I have about $4k worth of bonuses and commissions floating in the ether, just waiting to deposit. With the funds I already have, this is more than enough. I should have it all before 6/20, but that is pushing my 6/30 anticipated closing date.

At this point, I just dont know what comes next! Underwriting, conditions, denial, what?!?!?! I am hoping that everything goes to the underwriter, they tell me what they need, I give it, then this is my house. That just seems too easy. Does anyone have recent experience with an FHA 203k (streamlined) loan? I know this is uber long, so thank you in advace for taking the time to read it! I appreciate any input or advice that you can offer.

Consolidating Student loans,what payment reports?

llecs — Sun, 19 May 2013 01:19:34 GMT

Moved to Student Loans

Should I close my bank account?

newhouse2013 — Sat, 18 May 2013 21:48:26 GMT

I have two bank accounts; one with BOA and the other with TD Bank. I am planning to apply for a house in August and want to close my BOA account. I am tired of the fees and planned on closing the account anyway to sign up with a credit union after I get my house but I want to do it now, do you think this will hurt my chances in the application process? Although this is my main account, I have already saved copies of cancelled rent checks from the website for the last 10 months and will have my check redirected to my TD Bank, so I don't expect any problems with missed payments. Do you see any other problems with closing the account so close to applying?

Thanks for the help.

mortgage credit pull now or wait?

toli77 — Sat, 18 May 2013 20:53:46 GMT

i would like to buy a house by sometime september.

started looking a bit, got a realtor, and contacted the mortage broker.

back story is that i worked hard to build my credit this year, got approved for

two credit cards in april. i was expecting a dip in my credit score after cards,

but it actually went up. but only discover is reporting, not amex. due to amex

backdating, once amex reports, i'm hoping my aaoa goes back to 1998 which

i'm assuming helps with scores? my scores are now at 767 EQ, 759 Trans.

i talked to the mortgage broker a few days ago and he obviously wants to

pull credit to preapproval/prequalification. but then i decided not to proceed

cause the thought came to me that maybe i should wait til amex starts reporting

and maybe a higher score? but then, it's only preapproval/prequalification

so does it matter when they pull? they would do another pull when i find a home

and closer to closing the mortgage? any thoughts?

VA Waiting on Approval

Bsrn2016 — Sat, 18 May 2013 19:55:28 GMT

Hello,

I've never been through this before. Using my husband's VA eligibilty, we put a house under contract, and got prequalified by one lender and preapproved by another. Both prequal and preapproval came back exactly the same and not contingent on selling our current home. It is on the market, is only in my husband's name, and we plan to rent it if need be. We submitted our loan application on Tuesday and got an updated GFE in the mail today. We are locked in.

This is causing me great anxiety as I do not do well with not being in control in situations! I like things certain. I have a few questions and also want to have some support from others going through the same thing.

Our income is not high, I won't say how much but its average to lower. We only have a 62,500 mortgage on our current house and are applying for a 120,000 mortgage. I am wondering what the chances are of the underwriter turning us down because of the two mortgages? Both lenders said it was fine for us to have both but isn't underwriting more strict? Many people have said they wouldn't have gone with far with us if the LO wasn't pretty sure we'd be approved.

Anyone got any insight to calm me down? Want to close June 21st!

Minimum Credit Score for USDA?

TJ72 — Sat, 18 May 2013 19:45:33 GMT

Hello all,

We are thinking about buying a home in New Hampshire and the particular area qualifies for USDA home loans. We were wondering what the minimum credit score is for this type of loan (and couldn't find this info on the website).

Thank you!

Cost Cost Funds Question

pdog661 — Sat, 18 May 2013 19:55:38 GMT

Hi,

We are closing on a house in Mid July.

We are going to have to close about 5 accounts to complete the closing cost funding.

Some of these accounts need about 45-50 days to clear, and place in my checking account. Since the funds will hit my account so close to our close date I will not be able to show statements of the funds leaving(many are quaterly statements only), and I will not be able to show them in my checking.

Will underwritting care that I can not show the transfer, but will be able to show a certified check of the funds? Is it enough to show the statements with the funds in the accounts, and simple tell them this is where I plan to pull the funds from for close?

Thanks.......

Would I qualify?

striker3771 — Sat, 18 May 2013 18:21:20 GMT

Hello,

Long time lurker and first time poster. I would like the thoughts of this great community if my info below would qualify for a new build. I was looking to finance a $162,000 purchase.

My middle score is 670.

Income: $60,000-$70,000 (3+ years with the same company as a 1099 employee. However, I have set up an S corporation for direct deposit. I pay myself 40% each month of the direct deposit each month so I can pay my social security and personal tax each month)

Extra Income: $8,000/yr (steady for 10+ years) child support

Debts: 2 credit cards with 4% total util; $445.00/mo car loan (car loan is paid through my S corporation)

Thank you for your input.

Mortgage / spouse

Bell536 — Sat, 18 May 2013 14:40:29 GMT

If my husband is applying for a mortgage with just his credit, do they still take my credit history into account also or my montly debt for dti calculations?

We live in Georgia...

Thanks ya'll!

My Mortgage finally showed up on my credit report yesterday!

wally101 — Fri, 17 May 2013 21:49:56 GMT

Love the fact that my mortgage finally showed up. I closed 1-29-2013. But today I got an alert of a new inquiry from IR Anaheim. I have not applied for anything since buying my house 4 months ago! Anyone know what that company is and how I can get ahold of them, I googled and couldn't find anything. Thanks in advance.

Self Employment Mortgage requirements?

book1773 — Fri, 17 May 2013 21:25:54 GMT

I am trying to obtain some feedback if anyone can be kind enough to help me. I have a friend who has

a 720 credit score across the board no baddies, no tax liens ect and all credit cards paid down to $0.00

no open car loan either and is self employed. What is the requirements to get approval with self employment?

Is it 2 years self employ tax returns or can it just be 1 year. I have been hearing that if

you are self employed your business needs to be in operation for 2 years or more but what

if you are self employed not by a business you own but as income comming in under your

own name?

Any help would be great. I know the banks are a lot more stick then

before. Also are the banks less strick with income if you put 20% down suppose to

a FHA of 3%