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How do you know when to give up?

Jason4string
Regular Contributor

How do you know when to give up?

We saw two mortgage lenders this week in the hope of being told what we can do to get qualified.  After nearly four years of credit repair and aggresively paying down debts (99.9 percent of was my hospital bills) we were essentially told by both lenders that there "is nothing else to do"  They commended how much i had done, and then said they only wish it had been enough, and suggested waiting maybe a few years.  I know it was my hospital debt that did this, and if I could go back knowing what I do now I am not sure I would seek the emergency medical care that literally saved my life, maybe I would have chanced it I dont know.  I feel so defeated  - I should  have filed for bankrupcty four years ago - we easily qualified - and waited out the two years rebuilding, my family would be home by now.  Instead I thought I was doing it the "right" way, and now I am here.  I dont know what I am looking for her, just - what do you do when there is nothing else to do?  You just dont qualify for a home?

12 REPLIES 12
Mortgage-Specialist
Established Contributor

Re: How do you know when to give up?

If you're looking to go FHA and dont have derogatory accounts within the past 12 months you should be okay. I believe you're just a few points away from a 580 middle score - then you would be able to buy with 3.5% down payment. Technically, you can qualify now (scores under 580 require 10% down for FHA)

The key ingredient is no late payments or collections in 12 months. And no more than 2 late payments on installment loans within 24 months.
Message 2 of 13
homebuyer360
New Contributor

Re: How do you know when to give up?

Come on. Don't give up hope. Not qualifying today doesn't mean you won't qualify later.

 

Continue to repair your credit, pay your bills on time, and increase your income. Give it another year or two and see what happens.

 

Message 3 of 13
OmarR
Established Contributor

Re: How do you know when to give up?


@Jason4string wrote:

I know it was my hospital debt that did this, and if I could go back knowing what I do now I am not sure I would seek the emergency medical care that literally saved my life, maybe I would have chanced it I dont know.  I feel so defeated


 

If it actually saved your life, you did the right thing.

    EQ=850        TU=837         EX=837      INQ=0/0/0     UTIL=$1        AZEO


Message 4 of 13
Mrs_A
Contributor

Re: How do you know when to give up?

Don't give up! We were in the same place last year, medical debt and problems, denied by several lenders also in a super competitive and expensive market in Southern California. We had a lot of setbacks but just kept chipping away at it - today we close on our first home in 2 weeks. It's about finding the right lender who will work with you too. Ours stuck with us through the good, the bad and the ugly. Make sure you are saving up for that future house, good down payment, money for closing costs and then one day it will just be the right day. I know first hand!

Message 5 of 13
homebuyer360
New Contributor

Re: How do you know when to give up?

By the way, one option you may want to consider is NACA (www.naca.com). With NACA, you are already "approved." You just have to walk through a substantial documentation process. 

Message 6 of 13
Jason4string
Regular Contributor

Re: How do you know when to give up?


@homebuyer360 wrote:

Come on. Don't give up hope. Not qualifying today doesn't mean you won't qualify later.

 

Continue to repair your credit, pay your bills on time, and increase your income. Give it another year or two and see what happens.

 


I know its just in a few years - three of my six children will be gone.  Two in college and one will be a year out - theyll never have gotten to live there at all.  Not to mention at present we live in an unsafe neighborhood and cant rent because of our family size and new rental occupancy laws here (we are grandfathered in) I just wish i had known four years ago just to file bankrupcy and start over.  I really thought it was better to do it this way.   And for whoever mentioned it we have to go conventional because of student loans, we cant count them at 1% or we would never be able to get a home. 

Message 7 of 13
NC_Mtg_Loaner
Valued Contributor

Re: How do you know when to give up?

2/3 of your credit score is determined by the way you manage your open and active reports.   With that being said, make sure you have the right type of accounts (2 revolving &  1 Installment) open and actively reporting your on time payments each month to all 3 bureaus and your score will recover quickly.  

 

"Don't give up, don't ever give up!"

 

~Jim Valvano

__________________________________________________

Licensed NC Mortgage Loan Originator
Message 8 of 13
beealix
Established Member

Re: How do you know when to give up?

Have you heard of NACA? If you haven't I suggest you look into it naca.com and see if it is in your area. 

Message 9 of 13
Jannelo
Frequent Contributor

Re: How do you know when to give up?

If it makes you feel any better, the home I hold the fondest memories of is the home my parents bought after we were all out of the house.  I loved that home, and it carries a million memories with family dinners with all of us and spouses, children, etc.  My parents are gone, but as much as I have wonderful memories of my childhood home, which I lived in until I graduated from high school, it's their last home that we  (myself and my  three siblings) all remember most and think of often.  

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