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Terrible fico score but a large down payment in IL?

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MovingForward_2012
Valued Contributor

Re: Terrible fico score but a large down payment in IL?

It is a special 1st and 2nd mortgage CHFA program in Colorado. The 1st is FHA and the 2nd is through CHFA, the housing authority. To go with the program that eliminates mortgage ins, you have to put 3% down. We are going with the CHFA program that includes mortgage ins as we only have to put down 0.5% and the remaining 3% is rolled into the 2nd mortgage along with closing costs.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 11 of 18
MovingForward_2012
Valued Contributor

Re: Terrible fico score but a large down payment in IL?

I should add the remaining down for the program with no mortgage ins is rolled into the 2nd CHFA mortgage along with closing costs. The program that eliminates the mortgage insurance requires a 700 credit score. We are going with the 0.5% down program that includes mortgage ins.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 12 of 18
violetsmom
Regular Contributor

Re: Terrible fico score but a large down payment in IL?

Moving Forward, you are buying a new build in Colorado?  We are as well Smiley Happy

Message 13 of 18
MovingForward_2012
Valued Contributor

Re: Terrible fico score but a large down payment in IL?

Yes! We are buying a new build in Colorado. It was finished in the fall of 2012. Isn't it so nice to move in a new home no one has lived in? We are so excited! We close mid Feb. When are you closing? I know you must be excited! Smiley Happy We are meeting tomorrow to start the contract and get the house off the market. We put a hold on it on Wed.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 14 of 18
violetsmom
Regular Contributor

Re: Terrible fico score but a large down payment in IL?

Ours is currently a pile of dirt being excavated Smiley Happy  Tentative close is late April.  We went under contract early November and finally got loan approval right after Christmas.  Very excited but nervous something will go wrong between now and April, eeek!

 

Are you in the Denver area?  If you don't want to share I understand Smiley Happy

Message 15 of 18
MovingForward_2012
Valued Contributor

Re: Terrible fico score but a large down payment in IL?

I am in the metro Denver area. That is really neat as you got to pick the colors! That's wonderful. Ours is fully built and ready for move in. We couldn't wait for a full build. Our timetable is short as we must close by end of Feb...hoping for mid Feb. We looked at some still being built but they aren't ready until April. Slow go in the winter. Congrats!
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 16 of 18
martinkk
Contributor

Re: Terrible fico score but a large down payment in IL?

We did something similar so I will tell you what worked for us,however, this was 25 years ago. In your situation, we went to a local bank, explained our situation, and showed how we could afford to pay for the house. They agreed to give us a signature loan instead of a mortgage loan, which we didn't qualify for, with the house as collateral for the loan. They had to take it before the board, but the board approved. It worked out really well. The signature loan was structured with a balloon note due in a year. At the end of the year, they just rewrote the loan with the lower balance. The idea was that in 3-4 years making timely payments, we would qualify for mortgage loan. But...there was a happy consequence. House note was $800 a month. Since it was a signature loan it was about 1/2 principal ans 1/2 interest. This is much higher principal being paid than on a mortgage loan. We ended up just asking them to continue with the balloon loans. We paid off the house in Nine years And some years the note went down. Side note...we had to pay our own taxes and insurance every year. No escrow.

Message 17 of 18
MovingForward_2012
Valued Contributor

Re: Terrible fico score but a large down payment in IL?

Wow, martinkk that is really neat!!! I would be so happy to pay the house off in 9 years but I know it isn't happening. My loan officer said that they rarely do those types of loans anymore since the housing market crashed as so many people weren't like you and didn't budget for the expenses that weren't escrowed and ended up foreclosing. It was mostly due to predatory lending as these brokers picked candidates that really only had the $800 and not much more. They could have if they streamlined their finances but they got all giddy over the initial lower payments and built their finances around it. I know there are some really good people on this forum that are ready to go but can't get financed because of their credit. I don't know if this is still a possibly for them or not if they look hard for the opportunity. They could try a local bank and see what they say but from what my loan officer said, those opportunities are long gone. Wow again! I know you are so happy right now in your home!
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! Smiley Happy Last App: 4/5/13 Gardening until July 2014
Message 18 of 18
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