100% financing loan?

[HanginInThere]

Hi,

I have a 666 Ex FICO and 678 TU FICO.

The good:

I have 1 motorcycle loan (at 0% interest) and a car payment, both good payment history.  Both I have had for roughly 1 year.  I also have 2 or 3 credit cards, all 3 of which are paid off (and have been for a month or so).  I occasionally will put things on credit, although pay it off before the statement comes due.  I have been at my current job for a year, and a year and a half before that.  The job before that one I was at for 8 years so have been employed for the last 10 years making decent money.

I have some student debt and the 2 auto loans.  My DTI is roughly 18%

The bad:

I don't have any money to put down, and only about 6000 total saved up.  

I had a car reposed 6/2012 (it was an ex GF's car, and dumb me, was very passive aggressive with it).  I have since paid it off in full, although it's not reflecting on my credit report yet.  It was paid off in December.

I have 4 credit cards in February of 2009 that were settled.  Long story short, I thought I was entering a debt consolidation loan, although was entering a "let's not pay this and settle it for you, then charge you a fee".  When I caught on to this, I then settled the cards.  They were paid off as of 2/2009.  

I had 1 collection in 2009, although it has since been settled and reflecting with a $0 balance.  

So I was planning on living at my apartment complex for another 6-10 months, although my lease is up in 2 months.  They are raising the rent (imagine that) to an amount I am not willing to pay.  On the flip side, I rather not pay to move, and then look at buying a house in my same time line.  Month to month isn't an option, as the rent goes up by 40% going month to month.  

With my credit history and what I have said, could I be considered for a 100% financing home loan or should I hold off?  How long would you recommend I hold off for?

[TnTNYC]

Someone correct me please, but I do not believe 100% financing exists anymore.  Something about 2008 that changed all that...

[Anonymous]

USDA financing is available with 0% down.  I believe VA loans are as well.

USDA loans are area specific.  The property has to specifically qualify.  Although the program is meant for rural areas, some of those areas aren't exactly out in the middle of the woods.  VA is more flexible and available to veterans although I understand the appraisal standards are a little more aggressive, as they send their own appraisers out for the program.

[HanginInThere]

I forgot to include that I would likely do it through my credit union.  They offer 100% financing (obviously a higher interest rate) as long as the house is in the state I live in.

[Anonymous]

I would talk with the CU to see if the repo would be a problem.  Since you settled the cards I wouldn't think they'd be at issue, but the repo and associated lates within the last 12 months could be an issue.

[MovingForward_2012]

You can check with your local housing authority. Ours has a program where 3% of the downpayment is rolled into a second mortgage along with the closing costs. So the remaining down for FHA is 0.5%, which is typically covered by earnest money. It also doesn't require the home to be in a targeted area. The program has income limits but they go pretty high as I make $96K a year and still qualified. I used this program, closed on 2/6/13 on a $347,900 new construction home only coming out of pocket for $2,000 in earnest money, $425 for inspection, and $133 at closing for remaining interest in Feb that wasn't covered by my other credits. The builder paid all my closing costs, which were $8,000, so I only had to roll the downpayment into the second mortgage. My second mortgage is only $50 per month and both are 30 yr fixed at 4.125%. The interest rate is a little higher when you don't put anything down but once interest rates go back up, 4.125% will look like a stellar deal.

If your housing authority doesn't have a program like this, you can check out your local credit union as others said, many offer great programs.

Even though I purchased for essentially zero down, I have come out of pocket with over $5000, as you still have to put down earnest money to put an offer on the property, pay for an inspection, and then all the moving costs and security system setup, etc...the list goes on and on. I did buy $2200 in new furniture and I still have to buy two TVs and the home theater system but these costs are optional. I also need other misc items like rugs, solar lighting for the driveway, etc. so I expect the total to hit $10K when everything is all finished.

What home prices are you looking at? Do you have any retirement funds? I am asking because I'm thinking you will be left with $2,000-$3,000 in savings if you find a program like I meantioned. I think you would want to have at least $4000 in savings for emergencies.

[HanginInThere]

Thanks for your reply.

I do have a 401k, although it doesn't have but around $5000 in it.  The money mentioned in the above post was actually leaving me with $2000.  I have money in a seperate bank / seperate account that I do not mess with.  

I am actually leaning towards holding out for 10 months....this would make it over a year since the repo, plus 10 months of good payment history should improve my score if not giving me more time for cash reserves.  

When can I expect the car repo not hurting so much?

[JM-AM]

Im surprised no one refers to NACA much any longer.

NACA while you have to do things and participate in their workshops (cost a few dollars $20-$50 I think), and not the fastest process in the world, offer excellent fixed rates, no down payments, and possibly $0 closing cost.

Yes the process isnt very fast, but is still worth looking into, especially if credit challenged.

[Anonymous]

I had never heard of them until you mentioned them but looking at their site it seems like a valid option!

[DallasLoanGuy]

sounds like you should apply with the credit union and tell us what they say