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feeling hopeless

cdcyank said: "me and my fiance are looking to purchase a home together but have past credit problems. the home we are interested in is 148,800. my score is in the 550's and hers is in the mid 400's. does anyone know of a company that may finance us at 100%? we would really appreciate your help."

TScott said: "[QUOTE=cdcyank]me and my fiance are looking to purchase a home together but have past credit problems. the home we are interested in is 148,800. my score is in the 550's and hers is in the mid 400's. does anyone know of a company that may finance us at 100%? we would really appreciate your help.[/QUOTE] I found out......because we are looking too...that you have to have a minimum score of 580 to qualify for 100% financing/0 down. If you get your score up and can get the loan on your own.....you may be able to do it quicker. If both of you need to be on the loan, you will probably need a little more time with your wife's score being in the 400's. We have a similar situation........my husband is going to do the loan on his own because my credit is a little worse."

koolio said: "it doesnt matter if you have 580 or higher, you must also have atleast 2 or more tradelines. as far as your wife, it doesnt really matter her score to be on the loan. they go by who makes more money. if you want she doesnt have to be on the loan but she can be on the title. i use to be a loan officer.also be careful with origination points when you get a loan because if you dont you can get ripped off in your interest rate. - Randy"

sexione said: "[QUOTE=koolio]it doesnt matter if you have 580 or higher, you must also have atleast 2 or more tradelines. as far as your wife, it doesnt really matter her score to be on the loan. they go by who makes more money. if you want she doesnt have to be on the loan but she can be on the title. i use to be a loan officer.also be careful with origination points when you get a loan because if you dont you can get ripped off in your interest rate. - Randy[/QUOTE] My fiance makes more money than me but I have better credit. All of our scores is over 620 but mine are higher but I want us both on the loan."

koolio said: "you can have both of you on the loan but remember one thing, theres whats called a debt to ratio income, meaning if you have any open accounts as in credit cards, collections, etc ect that your paying monthly itll add up on your debt to income ratio, for example gross between both of you is : $1800 car payment : $350 credit card payments : 150 car payment : $250 thats a 41% debt to income ratio, then your ok. some lenders wont go past 55%. now if you know your debt to income ratio exceeds that, find a way to lower it, pay off some things on your credit report. maybe it is best to have you off of the loan or maybe not have her on the loan. its not that simple. before you go searching for lenders. try telemarketers, their annoying but can get you wholesale rates that high name banks cant. also pull your credit report of all 3 ber. before anything. dont give them your social. just let them know your 3 credit scores and it goes off by the middle fico score.for example 518,621,682 their gonna use the 621. -randy"

sexione said: "[QUOTE=koolio]you can have both of you on the loan but remember one thing, theres whats called a debt to ratio income, meaning if you have any open accounts as in credit cards, collections, etc ect that your paying monthly itll add up on your debt to income ratio, for example gross between both of you is : $1800 car payment : $350 credit card payments : 150 car payment : $250 thats a 41% debt to income ratio, then your ok. some lenders wont go past 55%. now if you know your debt to income ratio exceeds that, find a way to lower it, pay off some things on your credit report. maybe it is best to have you off of the loan or maybe not have her on the loan. its not that simple. before you go searching for lenders. try telemarketers, their annoying but can get you wholesale rates that high name banks cant. also pull your credit report of all 3 ber. before anything. dont give them your social. just let them know your 3 credit scores and it goes off by the middle fico score.for example 518,621,682 their gonna use the 621. -randy[/QUOTE] We have one car payment which is 326.00 a month the balance is around 10,000. I do have credit cards which if you add them up they are under 2,000 and I pay them each and every month. My car is paid off but eventually I will need a new one. He makes 16.00 an hour and I make a crappy 10 but thats just for now. He has no cc, no phone bill no nothing but $70.00 insurance and that is it. We will see what happens!"

koolio said: "you dont have to worry about the balance on any of the credit cards or car balance, they look at your monthly payments and add that up so they can get the debt to income ratio, if thats all you have you should be fine. if the car is payed off and still shows on your credit report thats 1 good tradeline and you can use your credit cards as tradelines too. if you have any collections and their high outstanding balances thats probably gonna affect you if their under 2 years anything past that dont worry about it. Another thing when you go and purchase your home, if you can play dumb with the loan officer and force him to put the house appraisel on the loan even if you have the $350 or whatever they charge you to pay for it. that way incase the deal goes down he has to pay for it...haha :p he might say he cant but trust me he can and if he doesnt want to and your not desprate to buy then lay an ultimatum on him by saying youll go with a loan officer that will. also dont let them talk you into getting a 2/28 program go straight for a 30,20,15 or 10 year fixed which ever one you want. even though the rate might seem uncomfortable....think about president bush and his bullshit ways of raising the interest rates. youll be happy on the long run. remember on origination points. dont let a loan officer charge you more that 1point upfront and 1 in the back...the back point is a sneaky way of him getting paid more and your interest rate going up just for him to get more cash on his paycheck. - Randy"

MichaelG said: "[QUOTE=koolio]you dont have to worry about the balance on any of the credit cards or car balance, they look at your monthly payments and add that up so they can get the debt to income ratio, if thats all you have you should be fine. if the car is payed off and still shows on your credit report thats 1 good tradeline and you can use your credit cards as tradelines too. if you have any collections and their high outstanding balances thats probably gonna affect you if their under 2 years anything past that dont worry about it. Another thing when you go and purchase your home, if you can play dumb with the loan officer and force him to put the house appraisel on the loan even if you have the $350 or whatever they charge you to pay for it. that way incase the deal goes down he has to pay for it...haha :p he might say he cant but trust me he can and if he doesnt want to and your not desprate to buy then lay an ultimatum on him by saying youll go with a loan officer that will. also dont let them talk you into getting a 2/28 program go straight for a 30,20,15 or 10 year fixed which ever one you want. even though the rate might seem uncomfortable....think about president bush and his bullshit ways of raising the interest rates. youll be happy on the long run. remember on origination points. dont let a loan officer charge you more that 1point upfront and 1 in the back...the back point is a sneaky way of him getting paid more and your interest rate going up just for him to get more cash on his paycheck. - Randy[/QUOTE] First of all the 2/28 program offers a very attractive rate compared to 15 or 30 yr fixed. if you get into a home on a 2/28, you'll probably refinance before it adjusts up after 2yrs anyways...hopefully by then your scores will go up through on time mtg pmts., and credit clean-up. 30yr money is expensive, and if you're young with low scores, it doesn't make sense to borrow on 30yr money. Another thing...Bush doesn't control interest rates, Greenspan does (did) among other economic and financial factors. 1 or 2 points upfront is reasonable for subprime credit, especially on 100% financing. The point made on the back is not "a sneaky way of him getting paid more", number one - it's disclosed upfront and HAS to be disclosed in a good faith estimate, and secondly, it's fair compensation for the loan officer. Do you expect them to work for free? Do you expect to receive wholesale rates which are referred to as "par rates" for challenged credit? C'mon. What's sneaky is your suggestion that the borrower try to stick the loan officer with appraisal cost and have him/her spend time and resources to qualify the loan only to have the borrower walk and stiff the loan officer for the appraisal. What's fair is for me as a loan officer to say: "Mr. borrower, if I get you approved for 100% financing, I'll pay for you appraisal at closing. However, I need the $350 upfront from you as good faith and to let me know your serious and committed to me. If I get you approved and you flake out, the deals off, if you go through with the loan and house, I reimburse you for the cost of the appraisal ($350)""

koolio said: "hahaha i knew i would attract loan officers, they would hate me for what im doing :) :) . yeah your rite it does get disclosed in a good faith estimate but if the client isnt aware of what to look for he/she gets ripped right their and then. Hmm lets see here, they go get a loan some how the moron loan officer messes up the deal, the deal goes down and now the client has to pay $350 dollars? its fair compensation for the loan officer? are you kidding me? your not even sure how much closing cost are gonna be for them! loan officers make $1000's on deals and you wanna talk about fair compensation? now these are the types of loan officers you dont need to go with...theirs many loan officers that will charge you even half a point upfront and 1 point in the back? some wont even charge in the back so you can have the lowest rate, which many loan officer cal "par".why would you want to put them on a 2/28...OH LET ME GUESS!!! so they can build up their credit and then when its time to refinance you can have a lower rate! am i right? every loan officers comment. As fast as rates are going up by the time those 2 years come around itll be higher than the rate they could have been locked on 2 years ago. SEXIONE personal message me ill show you some rate sheets that loan officers use and the way loan officers get paid on those rates. i have many friends in the mortgage buisness... ill give you their phone number and you can speak with them about your scenario and what you would like to do."

MichaelG said: "[QUOTE=koolio]hahaha i knew i would attract loan officers, they would hate me for what im doing :) :) . yeah your rite it does get disclosed in a good faith estimate but if the client isnt aware of what to look for he/she gets ripped right their and then. Hmm lets see here, they go get a loan some how the moron loan officer messes up the deal, the deal goes down and now the client has to pay $350 dollars? its fair compensation for the loan officer? are you kidding me? your not even sure how much closing cost are gonna be for them! loan officers make $1000's on deals and you wanna talk about fair compensation? now these are the types of loan officers you dont need to go with...theirs many loan officers that will charge you even half a point upfront and 1 point in the back? some wont even charge in the back so you can have the lowest rate, which many loan officer cal "par".why would you want to put them on a 2/28...OH LET ME GUESS!!! so they can build up their credit and then when its time to refinance you can have a lower rate! am i right? every loan officers comment. As fast as rates are going up by the time those 2 years come around itll be higher than the rate they could have been locked on 2 years ago. SEXIONE personal message me ill show you some rate sheets that loan officers use and the way loan officers get paid on those rates. i have many friends in the mortgage buisness... ill give you their phone number and you can speak with them about your scenario and what you would like to do.[/QUOTE] Wrong. I'm not a loan officer..stop making idiotic assumptions. If the client doesn't know enough to ask questions, and read their GFE, and ask the details of the transaction etc... they deserve what they get. Consumer law and RESPA provides plenty of opportunity to learn about fees, rates, to know what you're getting into, in addition to 3 full business days to back out (on refi's). I said the [I]point on the back [/I] is fair compensation, not the cost of the appraisal. The appraisal cost is the borower's responsibility, not the LO. Read what I said again instead of making a knee jerk response, I SAID if the loan officer [B]GETS THE APPROVAL[/B] ie.. loan committment, the appraisal cost would be reimbursed --the loan officer "somehow messing up the deal" is not a loan approval. The appraisal cost of $350 I never said was "fair compensation" because it's a hard cost to the appraisal company, and loan officers cannot mark it up and profit from it, they must charge bor's what it cost them to order it, genius. The compensation is the back point on the interest rate. And a 2/28 saves the bor money compared to a much higher 30yr fixed rate. statistics clearly show that most homeowners refinance again within 2-3 years to consolidate additional debt, or take cashout of their homes. if you don't believe me, just check for yourself the record amount of refinances (refi boom) the country went through startingin the late 90's through about 2004 and is still going on albeit not as strong. if you offered a subprime borower a par rate, the trade off is the borower would pay more upfront. we've had a record period of low rates and now they have gone up. everyone knew it couldn't last forever, but they very well could trend back down again. No one expected the low rate period to last as long as it did, but it did. I just reflect back to the Carter days :eek: when double-digit rates and inflation were predominant, and know that we have it great...even if rates are on the rise...they'll never be to where they were in the 70's"

kevin said: "Get a copy of your credit report, and first of all see if there are any errors. If there are, get proof of them and contact the credit beareu with a letter of explanation. Also get collection accounts/derog accounts paid off OR pay them CURRENT. Then contact the credit beareu or a mortgage company that is willing to rapid rescore. Your credit score can easily boost within 72-96 hours after you submit proof that you had paid those accounts current."

sexione said: "I was wrong with my cc total Im actually at 3,500 if you add them up. Together we bring in 3,200 a month about not including the child support i recieve. My minimum payments add up to 219.00 a month...YIKES! I only make around 900-1,000 a month. I have no car payment. My fiance is worried about his medical collections but they are 3-5 years old and they are paid. I told him not to worry. My cc situation is worse than I thought. What should I do? Will this cause a problem? I have a monthly payment on one cc thats 38 a month and he balance is around 300. Shouls I pay down the cc with the higher minimum monthly payments or the ones with the higher balances. I have around 11 cc with just a couple hundret on them but that all adds up.... a few dept store ones. Credit scores are: TU - 649 EQ - 643 EX - 668 So they will use the 643? We are trying to buy now before interest rates go up again."

MichaelG said: "They will use 649"

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