Closing on Monday!

[Anonymous]

Yeah thats the only thing not so good about it. I had to struggle to make mine fit.

[ReBuildingAgn]

Hey Magzamillion, I'm also looking into financing with the CHIP program. Since you've closed have you any hindsight suggestions to share? Did you have to have 2 months reserves for 100% financing? Which credit score did they choose? I have old collections from 6 years ago on my report, but my median score (lender pull) was 671 last month. Would this be a potential problem?

[Anonymous]

I think you should be ok. I had a median score at about what yours is and went straight through the process with no problems. In order to do 100% you need a median above 660 so you should be fine. Collections on your report only effect you if they are within the last 12 months. The CHIP program wants you to have clean credit for 12 months. Make sure you calculate your income and be prepared. I ended up having to do 97% financing because of the way they calculate income. I think the 100% income cap is like $55,000/year. 

And yes, you have to have the 2 months of reserves for 100% financing or 1 month of reserves for 97% financing. I think CHIP is a wonderful program and if you can take advantage of it, DO SO!

[ReBuildingAgn]

Thanks! I have a reputable credit counselor working to remove some old collections from my report via DVing and PFD's. I'm wondering if I should wait until some of those delete so that I may get a better interest rate. Do you know if the interest rate is still based on the credit score?

[ReBuildingAgn]

And my income will fit just fine. I made about 43K this year, but starting 2012 I will recieve bonuses, so I figure I need to take advantage now before my yearly income takes me out of the running for some programs.

[ReBuildingAgn]

Just spoke with the lender at BB&T and she said the credit score requirement has been raised to 680.

[Terrie1977]

I applied for CHIPS and was told that although my credit score is 680, I will have to pay off a charge off from 2007 becasue it was over $200.

Wells Fargo didnt even bat an eye at the charge off but I settled it b/c the upfront costs of FHA are unreal.

Will talk with BB&T monday. Crossing my fingers!