Has anyone heard of a program like this? My Mortgage scores qualify me for a mortgage (mid mortgage FICO is 672) but...my Ch 7 still has me on the wait list (another year and a half). This has no waiting period. This is for Arizona. I would also be able to put more down, I just like the idea of not having a waiting period for my BK.
http://www.arizonadownpaymentassistance.com/arizona-flat-down-payment-mortgage-program/
Quick snapshot:
- Requires a flat down payment of $3000 (or 3% if purchase price is below $100,000)
- Minimum credit score of 550
- Loan amounts up to $300,000
- 30-year fixed loan
- No prepayment penalty
- No mortgage insurance required
I wondered about that too. They had "rent vs buy example" chart on their website. It listed 8% for the scenario with the person's score being 551.
I sent them e-mail asking for some more info. I had just never heard of a loan like this. If the interest is based on your FICO, this could be a nice alternative to waiting 2 years. Shoot, I guess one could even do the higher % and then refi later once the waiting period was over. I'd rather wait the year and half and save up more money, personally. But....it's....seems.....like.....it's....so.....far....away. lol.
@Anonymous wrote:Bad idea. Take 18 months and clean up your credit. Do it the right way.
Agreed, I plan on doing it the right way. Not much cleaning up to do though, 6 IIB accounts and big fat BK. Only time will heal those wounds. I didn't even think these kind of loans were allowed anymore.
@kjm79 wrote:
@Anonymous wrote:Bad idea. Take 18 months and clean up your credit. Do it the right way.
Agreed, I plan on doing it the right way. Not much cleaning up to do though, 6 IIB accounts and big fat BK. Only time will heal those wounds. I didn't even think these kind of loans were allowed anymore.
They are allowed. All kinds of subprime loans are out there now. It seems that the guidelines for certain lenders has changed dramatically over the last couple of years. Not big box banks, they are the most conservative. But I get emails every day with very loose requirements from a bunch of lenders (because I'm a Realtor) soliciting for loans/buyers. Of course these emails are the marketing variety so you only see half the story in the email solicitation. They usually leave out LTV and interest rate! 
I agree with Rising_Scores above , do it the right way, without a subprime loan.
I think it's time for a "for the record" post. I wasn't REALLY planning on moving forward with this type of loan. Sure, not having to wait another year and half would be fantastic. However, I did the crime (Bk so to speak) so now I have to do the time. I can set myself up with more reserves, larger down payment, pay off my son's braces...lol...just an overall better position.
I think more than anything I was just surprised that these types of loans are not only still out there, but are still allowed after the last housing meltdown.
