For those of you with fair credit, what kind of rates are you seeing?

[Ravensfan2001]

Multiple paid and unpaid collections/judgments. Paying off all collections and providing proof of satisfaction was one of our conditions for approval.

[specialksauce]

Awesome news for us. Much more hope than expected! Thank you all for the info! 

Just need the IRS to waive the lien when the time comes. But his lawyer is in charge of that portion of baddies. 

VA is definitely going to be the choice for us. 

[js0319]

I owed over $6,500 to Midland on an unpaid CO from 5.5 years ago, and had two unpaid medical collections under $1,000. DW owed on a few medical collections as well. We closed on 8/30 on an FHA loan, and our loan amount was around $265k. We locked our rate 7/29, which was 4.625% at the time. We paid .5 points and brought the rate down to 4.5%

[Asailorshort]

We just closed on a va loan last week. Our rate was 4% with no points. I suspect rates have gone up with our lender .25 to. .5% since we locked in our loan rate.

[specialksauce]

Just thought of something. He has a charged off heloc from 2008/9 that makes $25 payments on each month. BofA conned him into that before he ever paid late. Thats a whole other story. 

We haven't tried to settle yet b/c its such a large amount and he only has 3% of the 56k. ouch. and they haven't tried to sue or anything. yet. 

Will this be an automatic denial for a va loan? how will they factor that into his DTI? just the $25 monthly payment or do they figure an amount larger than that b/c its a large balance. 

[specialksauce]

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@DallasLoanGuy wrote:

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@specialksauce wrote:

You guys are great! Thanks for sharing! 

My only concern is he will still have major baddies on the reports such as foreclosures from 2007/8 and CO's from same time period. All of his baddies literally happened from 10/2007 and 08/2008. So i'm hoping they don't make him pay old accounts off etc etc. 

Those who got 5 and below did you have cleared up credit or any past CO's or CA's or anything negative?? Did you run into any roadblock with the UW's?

But your guys info gives us great hope that we can be below 5.5% instead of the 7% or 8% we are anticipating. 

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some lenders might require something be paid.

you can always find a lender who doesnt

va won't require old collections to be paid.

the rate is for va loans.

800 credit gets pretty much the same rate as 640 with collections.

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So we just spoke with a broker and she said that we can't do a VA loan with open collections. He has a open CO (car repo) from 2008 and she said since it's still open, VA won't work. FHA would though. 

Said something changed in the last year that the VA requires the old collections to be dealt with or be paid or show zero balance. 

Well there goes buying a home in the next 3 years. FHA and the PMI is too much for us knowing we have the VA eligibility.