Sorry for posting two in a row but didn't want to confuse everyone....
I am currently a police officer and I am utilizing the "Good Neighbor Next Door" program. It is a great program and I am currently going through the mortage process. The program was described to me as follows:
THe HUD home is appraised and is offered to police at a discount of 50%. The home I am looking at was appraised for $120,000 and I am under contract for $60,000, and the program only requires $100.00 down. Two mortages are taken out, each for $60,000 (est w/o closing costs) for a total of $120,000. The 1st mortage is what I pay, and the second mortage (a guarantee) is considered a ghost mortgage and drops off after three years.
My question is this, my credit is a little over 620 so my credit isn't great. Wells Fargo handles all financing for this program. I do not have any credit cards and only 1 credit account. that is currently being used. Since I am purchasing a house for half price and will have a large amount of equity in three years, do you think the Wells Fargo underwriters are a little more relaxed? I am worried I won't get approved.
-Been employed for 3 years (same department)
-Rent was never late (2 year history)
-MIddle score is right around 620 (given it stays above)
-Have 2 collection accounts which have been paid in full
-1 judgement that is 6 years old- Paid in full over 5 years ago
-Auto account is 6 months old, current and never late
-DTI is not a problem
-No credit cards
-No debt besides auto loan menetioned above
Can someone who has worked for and/or with Wells Fargo or anyone with advice please help? THANK YOU TO EVERYONE WHO PARTICIPATES IN THIS FORUM!!!! Was able to raise my score above 620 because of you!! Just wanted to get that out there.....
Starting Score: 454