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Member
toac
Posts: 7
Registered: ‎05-31-2007
0

Middle score of 617

What are the chances of getting 97% or 100% financing with a 614, 617 and 637? I'm not eligible for FHA since 2 years from discharge isn't until June. Thanks
Member
toac
Posts: 7
Registered: ‎05-31-2007
0

Re: Middle score of 617

file date was 03/09/2006 discharge date was 6/15/2006
Super Contributor
ShanetheMortgageMan
Posts: 8,174
Registered: ‎09-28-2007
0

Re: Middle score of 617

You'd need to get your mid score to at least a 620 in order to obtain 100% financing on a conforming loan program... not that the loan program requires it, but the mortgage insurance companies are requiring a 620 score to insure mortgages over 95% LTV.  Also would need 2 years from the filing date, so just a month or so away.
Member
toac
Posts: 7
Registered: ‎05-31-2007
0

Re: Middle score of 617



toac wrote:
What are the chances of getting 97% or 100% financing with a 614, 617 and 637? I'm not eligible for FHA since 2 years from discharge isn't until June. Thanks


what about non conforming, or is that down the drain too? Thanks
Frequent Contributor
sunrise
Posts: 430
Registered: ‎10-28-2007
0

Re: Middle score of 617

Why would you want non-conforming?:smileytongue: 
 
In about a month you will be at your 2 year mark. And, you are so close to 620.  Pay down a little bit of cc debt this month and your scores should be right where you want them next month!:smileywink:
 
Hope this helps!
takin' it one day at a time
Super Contributor
ShanetheMortgageMan
Posts: 8,174
Registered: ‎09-28-2007
0

Re: Middle score of 617

Yes, please stay far away from any conventional financing that is non-conforming... which in otherwords is called sub-prime.  I'd rather rent than take a sub-prime mortgage.  Also, what is the rush to buy?  Is there a good deal staring at you in the face where you would be a fool to pass up or something like that?
 
Where are you looking to buy?
Member
toac
Posts: 7
Registered: ‎05-31-2007
0

Re: Middle score of 617

we found a bank owned property that is in a good neighborhood with good schools. My parents live 5 minutes from the house and my sister's house is directly behind the house. My wife is a stay at home mom and if we get this house she could baby sit for my parents neighbors (already agreed) before and after school for almost 1000 per month.

The house is being sold for about 100000. The appraised value should be about 125-130000. The house sold about 4-5 years ago for 124500. If I can buy a house and have 30000 in equity from day one, it seems like a good deal. If I have to deal with a higher interest rate for a year or 2 I will.

Sorry for the rant. My wife and I couldn't ask for a better house. That is why we don't want to wait. It really is a good deal and we don't want someone else to grab.
Member
toac
Posts: 7
Registered: ‎05-31-2007
0

Re: Middle score of 617

Sorry, forgot to add, the house is in the dayton, oh area.
Super Contributor
ShanetheMortgageMan
Posts: 8,174
Registered: ‎09-28-2007
0

Re: Middle score of 617

You'll end up paying more than $30k in additional interest by taking a bad interest rate loan now vs. waiting for a good loan program to come around.  If the home is selling for $100k, then why do you figure there is $30k in equity in it?  The value is what people will pay for it, so if people are willing to pay $130k for it then it's worth $130k... if people are only willing to buy it for $100k, then the value is $100k.  That isn't to say with a little elbow grease you couldn't improve the property condition to where it would be worth $130k.  Values in a lot of parts in Ohio are having difficult sustaining themselves, not sure about Dayton, but for example in Cleveland and parts of Columbus there are blocks & blocks of foreclosed homes.  I did a quick lookup of zip codes in Dayton and quite a few say they are in a "declining market", but there are also quite a few which aren't in a declining market.  So rushing to buy a home today with a bad interest rate loan, if in a declining market, might very well eat away any equity you'd figure you'd have.
 
The difference in interest rates between non-conforming & conforming would be 7% (because of the sub-680 score and LTV over 70%) vs. 9-10%.
Established Member
phxdevil
Posts: 48
Registered: ‎01-30-2008
0

Re: Middle score of 617

Shane, to your knowledge does the 5% ltv 'decling market' reduction apply to FHA like it seems to with every other type of loan?

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