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do sub-prime loans still exist? What about no-down payments?

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Anonymous
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do sub-prime loans still exist? What about no-down payments?

I am desperate to own my own house again after many years. 
My FICO scores from yesterday:  TU 607, EQ 581, EX 725
I currently have high utilization of my credit cards, but expect them to be paid off completely or down to 10% or less in a month or so.
 
My collections are as follows: (not all of these are showing on all reports)
Midland, balance of $1912, due to age off CR in Sept 09.  (I am not touching this one, preferring to let sleeping dogs lie.  It is listed as disputed on CRs)
 
Medical Collection, bal of $2238, very recent.  I have sent a proposal for a payment plan to them, waiting for them to accept.
 
Medical collection, bal of $178, due to age off in March 09.
 
Medical collection, bal of $967, due to age off in March 09.
 
Property Management collection, bal of $315.  less than a year old.  I'm planning on sending a PFD letter as soon as I have the money, in a month or so.
 
Property Management collection, PIF, due to age off in Oct 09. I've sent a GW letter to see if they can delete. 
 
 
I am throwing all my money at my credit cards for the next month or so. Christmas is going to be measly little gifts for family, and they better appreciate them!! Smiley Happy
 
I don't have a down payment, but can probably save up a thousand dollars or so by the end of Feb.
 
My only other debt is my car loan of $112/mo.  My student loans are in deferment right now.
 
My new job will give me a salary of $34320/yr.
 
What are my chances of getting a home?  Any advice?
Message 1 of 4
3 REPLIES 3
Anonymous
Not applicable

Re: do sub-prime loans still exist? What about no-down payments?

You are best to wait untilt he baddies fall off in 2009.  Here is why I think so
 
Generally all baddies need to be over 12 months old unless you have very good reasons.  1 might be tolerated, but a couple will really hurt you.
 
Your scores will jump a bunch when you get all the old stuff cleared off the report.
 
New job will possibly be a problem
 
Student loans have to be proven to be in deferrment for at least 12 months to not be counted towards DTI
 
Most importantly, I would think the property management issues would way very heavily.  If I am not confused, those are having to do with rental history.  The things that will overlook alot of baddies are high scores, high resereves, high income, good rental history, long job history.  Looking here, I see non of these.
 
I doubt you could get this approved for a loan, but even if you did it would not be pretty.  In a year, you will be in alot better shape.  Also, since seller DPA is dead and most local DPA requres 620 midscore, 100% is unlikely right now.
 
Give it a year, save some money, let your accounts age off...Then go for it. 
 
Message 2 of 4
angelalala
Valued Member

Re: do sub-prime loans still exist? What about no-down payments?

Have you looked into FHA loans? I've seen people here with worse scores that have been approved. I'm in about the same boat, though I'm awaiting my baddies to be deleted via HIPAA process.
5/2013: TU 646 Eq 622 Ex 738
Message 3 of 4
DallasLoanGuy
Super Contributor

Re: do sub-prime loans still exist? What about no-down payments?



@angelalala wrote:
Have you looked into FHA loans? I've seen people here with worse scores that have been approved. I'm in about the same boat, though I'm awaiting my baddies to be deleted via HIPAA process.


true, but recent lates hurt.
Retired Lender
Message 4 of 4
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