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Super Contributor
ShanetheMortgageMan
Posts: 8,252
Registered: ‎09-28-2007
0

Re: Do I need a down payment?

What are the minimum payments on any debt you owe (credit cards, cars, loans, etc.)?  If you don't have a ton, your debt ratio looks fine to qualify for the amount of mortgage you'd be looking to finance.  Down payments are not required for you unless you go with FHA, and then you can still get down payment assistance for the 3% down that FHA requires.
Established Member
waiting4credit
Posts: 42
Registered: ‎10-27-2007
0

Re: Do I need a down payment?

Truck-$395
CC-$ 20
ATV loan-$177
secured loan-$180
 
I think that is everything.  We've had to pay cash for everything for about 4 years now so we don't have many debts.  I pay a $20 a month payment on an old hospital debt, but it's not on my reports.
Super Contributor
ShanetheMortgageMan
Posts: 8,252
Registered: ‎09-28-2007
0

Re: Do I need a down payment?

Your debt ratio looks real solid to qualify for what you are purchasing.  Next question is what is on your credit that is bringing the scores to just below 600?
Established Member
waiting4credit
Posts: 42
Registered: ‎10-27-2007
0

Re: Do I need a down payment?

It's old nasty baddies bringing us down.
 
DH
1 truck repo 07-2004 @$3,500 balance left
1 ATV repo 12-2005 not sure what that one is >$2000
1 collection appeared in July from a three year old cell phone bill $385
3 Credit cards defaulted in spring 2004.  @ $6,500 for all three combined
 
Now he has more than 2 years perfect payment history on our truck loan, has paid off a small installment loan, has a secured credit card ($200 limit) which has been open since August-perfect payment history and we've been keeping util under 35% (with the exception of last month.)-and a new loan secured by our car to pay off a bad credit card for me.
 
I have:
1 contract for a tanning place I defaulted on 10/2004 $727
1 Lowe's card in default for 1 1/2 years
Established Member
waiting4credit
Posts: 42
Registered: ‎10-27-2007
0

Re: Do I need a down payment?

oops
 
In addition to those above,
I still have two bad CC's for about$2500 each and a defaulted tanning contract for $727.  The cards both defaulted in early 06 (maybe Jan. or Feb.) and the Tanning was from 10/2004. I also have a bad hospital bill for $379 from May 05.
 
I've paid off
$1500 CC--settlement in Aug.
$4500 CC--settlement in Nov.
$250 CC
and am making payments on a hospital bill
 
I have two closed accounts that I've been paying down
Discover--now $120 down from $1500 (no lates since June 06)
and HSBC--now $6300 down from $9000 ATV loan/CC thing (no lates since Mar 06)
 
My good accounts are
authorized user on DH CC
Truck
loan
student loans-deferred until July, but I start grad school full time next Aug.
 
Frequent Contributor
TheCynicalOne
Posts: 741
Registered: ‎11-05-2007
0

Re: Do I need a down payment?

Yikes....hmmm...
 
Well, good news is I have a friend that declared bankruptcy five years ago and got approved for a $200,000 home only bringing in $50,000...no down payment.  This is in North Carolina by the way.  I would say you should definitely save up for a down payment to increase the likelihood of approval.  Those baddies might hurt your chances, especially repos.
Time is credit's best friend...it can heal any wound.
Super Contributor
ShanetheMortgageMan
Posts: 8,252
Registered: ‎09-28-2007
0

Re: Do I need a down payment?

waiting4credit, well the good news is that all of your negatives are over 12 months ago, so that opens the door for FHA financing to be a real possibility.  If the negatives were due to extenuating circumstances then the odds are good they won't have to be paid off to qualify.  I'd get in touch with an FHA expert who is licensed in Oklahoma to find out what exactly you'd have to do in order to qualify, if anything.

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