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First time homebuyer questions / advice needed.

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Elcid89
Contributor

Re: First time homebuyer questions / advice needed.

DSELP is a pain in the rear. Avoid it unless you have no other option.

 

It is not a grant. It is an interest free loan that sits out tacked onto your mortgage as a soft second (it gets recorded as a second, subordinate lien). When you sell the home, you have to repay it out of proceeds.

 

You will also have to go through a CDA participating lender in order to get DSELP, and CDA loans have to be underwritten by FHA, VA or RHS. For $5,000 it isn't worth the hassle IMO.

 

The program also moved from BoA to US Bank, who have made the application process a nightmare. You will also have to attend special classes and get a certificate before you can participate.

 

Where in MD do you live?

 

The income limits are here

FICO 04 scores: 809 (EQ) 812 (EX) 818 (TU)

Amex Platinum NPSL - Citi HHonors Sig. $58k - BMW Ultimate $40k
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Message 11 of 37
09REX
Established Member

Re: First time homebuyer questions / advice needed.

Currently in Howard County. Was looking to buy in Howard County, but found a nice place for sale next door to a friend in Glen Burnie. It is a stand alone single family home with a garage for under 300k. Would have to be very lucky to find that in Howard County.
Message 12 of 37
Elcid89
Contributor

Re: First time homebuyer questions / advice needed.


@09REX wrote:
Currently in Howard County. Was looking to buy in Howard County, but found a nice place for sale next door to a friend in Glen Burnie. It is a stand alone single family home with a garage for under 300k. Would have to be very lucky to find that in Howard County.

Check your PMs. I sent you a message about a LO at a local bank who you need to talk to.

FICO 04 scores: 809 (EQ) 812 (EX) 818 (TU)

Amex Platinum NPSL - Citi HHonors Sig. $58k - BMW Ultimate $40k
Chase Sapphire Preferred $62k - Merrill Lynch + Signature $41k - USAA Rate Advantage $28k
NFCU Flagship Signature $50k - USAA Cash Rewards AMEX $28k
Citi Platinum Select / AAdvantage Signature $31k - Chase Amtrak Rewards World MC $41k

Message 13 of 37
09REX
Established Member

Re: First time homebuyer questions / advice needed.


@StartingOver10 wrote:

To clarify, the Merrick score is not a FICO score. If it was a FICO score, it would say so and name the version.  It is a very common misconception that is exploited by the credit card co's and the CRA's to generate additional revenue.

 

There are all kinds of credit scores offered by credit companies (like Credit Karma, Credit Sesame, etc) and none of those scores have any relationship to the score that lenders actually look at for your mortgage. The lenders use FICO scores. There are even diffrent versions of the various FICO scores. The best measure is to have your LO pull your reports and scores at the time you apply for a mortgage because those are the scores that are used for that lender.  However, many people want to have an idea of their scores and come here to pull them to get an idea because these are FICO. Here, we refer to any other score as a FAKO score (because FAKO scores are not used to issue you credit).

 

Look at the stickies in the FICO scoring section to get a better explanation of the difference between FICO and FAKO scores.

 

 


I had not realized that myFico and Experian partnered back up recently.

 

I pulled my scores from myFico (no 20% discount yet Smiley Sad ) and I got:

 

EX: 664

EQ: 620

TU: 663

Message 14 of 37
Revelate
Moderator Emeritus

Re: First time homebuyer questions / advice needed.


@09REX wrote:

@StartingOver10 wrote:

To clarify, the Merrick score is not a FICO score. If it was a FICO score, it would say so and name the version.  It is a very common misconception that is exploited by the credit card co's and the CRA's to generate additional revenue.

 

There are all kinds of credit scores offered by credit companies (like Credit Karma, Credit Sesame, etc) and none of those scores have any relationship to the score that lenders actually look at for your mortgage. The lenders use FICO scores. There are even diffrent versions of the various FICO scores. The best measure is to have your LO pull your reports and scores at the time you apply for a mortgage because those are the scores that are used for that lender.  However, many people want to have an idea of their scores and come here to pull them to get an idea because these are FICO. Here, we refer to any other score as a FAKO score (because FAKO scores are not used to issue you credit).

 

Look at the stickies in the FICO scoring section to get a better explanation of the difference between FICO and FAKO scores.

 

 


I had not realized that myFico and Experian partnered back up recently.

 

I pulled my scores from myFico (no 20% discount yet Smiley Sad ) and I got:

 

EX: 664

EQ: 620

TU: 663


That's going to be the same score as you'd get on virtually all mortgages.  The EX and TU scores here are different versions (FICO '08 and '98 respectively for those two) than what's on the standard tri-merge pull which is FICO '04.

 

As SO10 correctly states: you're mostly stuck with a lender pull to find out what your TU/EX scores are unless you happen to live in PA and can get your EX Fair Isaac V2 score from a CU there: there may be a few other rare cases where you can get it but I haven't seen them reported here.

 

@SO10: I thought Merrick was actually a TU FICO '08 Bankcard Enhanced?  Not used for a mortgage to be sure (double whammy, '08 and Bankcard) but still a legit FICO rather than a FAKO version.

 




        
Message 15 of 37
StartingOver10
Moderator Emerita

Re: First time homebuyer questions / advice needed.

Revelate, thank you for the correction - it apparently is a FICO 08 version with bankcard enhancement. Which, as you pointed out to the OP won't really give him the insight he needs, but its better than being a FAKO score.

 

OP, if your EQ is 620 that will be what your EQ lender score will be as the same version is used by the mortgage lenders. The two other scores don't use the same versions so there is likely to be a difference.

 

In any event, before you make an application to buy anything, go to the rebuilding section and get tips to increase your scores to over 640 for FHA. It really shouldn't be that difficult. For example, depending upon your current utilization, you can easily increase your score substantially by paying off every card to zero except one card and it should report a balance of less than 10% of your credit limit. That action alone will optimize your score. Sometimes this isn't possible, but if you reduce your utilization you will still see a bump. Sometimes that is the only action you need to do - other times there are more comprehensive solutions. Check that rebuilding section for some great tips.

 

As to a conventional loan, you should get your score as high as you can because the mortgage rate is credit score sensitive. I want to make a clarification of my original post too - I said conventional without PMI with 5% down - that is only with a Homepath loan. The others will require PMI and the cost of the MI is also credit score sensitive.

 

 

Message 16 of 37
jadeite788
Established Contributor

Re: First time homebuyer questions / advice needed.


@09REX wrote:
I tried looking up this information and only succeeded in going in circles. http://www.mmprogram.org/downpayment.aspx

They don't seem to list requirements for median income but say I must use a CDA loan.

The median income for Maryland is about 71k

The state will have its own downpayment assistance, but the county/or city you live in will have downpayment assistance as well.  You need to check to see if your city has downpayment assistance.  Its out there.  Just have to dig a bit.  Each program is different and has different requirements.


Starting Score: 565
Current Experian Score: 634 (Lender pull)
Current Equifax Score: previous 668, 680 as of 11/12/13 lender pull
Current Transunion Score: previous 675,677 as of 09/23/13
Goal Score: 750

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Message 17 of 37
jadeite788
Established Contributor

Re: First time homebuyer questions / advice needed.

I found this, but it is for charles county.

 

http://www.charlescountymd.gov/sites/default/files/cs/housing/Down%20Payment%20Assistance%20Program....

 

 

80% is low,  So that is an example of you not qualifying.   I know the program I am using calls for 110% median


Starting Score: 565
Current Experian Score: 634 (Lender pull)
Current Equifax Score: previous 668, 680 as of 11/12/13 lender pull
Current Transunion Score: previous 675,677 as of 09/23/13
Goal Score: 750

Take the FICO Fitness Challenge



Message 18 of 37
jadeite788
Established Contributor

Re: First time homebuyer questions / advice needed.


@09REX wrote:
I tried looking up this information and only succeeded in going in circles. http://www.mmprogram.org/downpayment.aspx

They don't seem to list requirements for median income but say I must use a CDA loan.

The median income for Maryland is about 71k

uggh, read it, thats a loan that is only deferred until you pay off your home or sell.  You need a grant.  


Starting Score: 565
Current Experian Score: 634 (Lender pull)
Current Equifax Score: previous 668, 680 as of 11/12/13 lender pull
Current Transunion Score: previous 675,677 as of 09/23/13
Goal Score: 750

Take the FICO Fitness Challenge



Message 19 of 37
jadeite788
Established Contributor

Re: First time homebuyer questions / advice needed.


@09REX wrote:
Currently in Howard County. Was looking to buy in Howard County, but found a nice place for sale next door to a friend in Glen Burnie. It is a stand alone single family home with a garage for under 300k. Would have to be very lucky to find that in Howard County.

http://www.howardcountymd.gov/departments.aspx?ID=6442455252


Starting Score: 565
Current Experian Score: 634 (Lender pull)
Current Equifax Score: previous 668, 680 as of 11/12/13 lender pull
Current Transunion Score: previous 675,677 as of 09/23/13
Goal Score: 750

Take the FICO Fitness Challenge



Message 20 of 37
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