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Home Loan --THANKS----Home Loan --THANKS----
oubeta said: "We'll six months ago my credit score was 540. Now is is 617 on Experian :)
I think we might now be in a position for our first home purchase. Her score is 690, but her income is low. My score is lower, but my income is triple hers.
Would it be better if we both were on the loan?
We are hoping for a 0% down 40 year loan for $180,000.
What type of loan should we look for,,an interest only?
I think I will have to do a stated income loan. I'm a landman and work for myself.
thanks for all the help"
liverichly said: "Since you appear to have to do a "low documentation" loan program you might as well do it with the borrower who has the best score. So you'd probably best be served to do a loan just in her name and use a "no ratio" documentation type, your score won't be included in qualifying thus providing more attractive terms. Since her score is strong you'll also be able to get in without any down payment (closing costs would need to be paid unless you negotiate with the seller) however a "no ratio" documentation type often needs 2-6 times the proposed mortgage payment in liquid asset reserves (checking, savings, 401k, IRA's, stocks, etc.).
40-year amortized loans are becoming popular today but they do not come in an interest only option to my knowledge. Besides a negative amortization mortgage, an interest only mortgage will get you the lowest payment option. I understand that since you are self-employed you are probably looking into a low payment option in case your business has a slow month, but keep in mind that repeatedly paying interest only payments prevents you from building equity unless your home appreciates in value."
rapidanian said: "I just got a no doc loan for 7.75 on my +660 score with 5% down. Seller is paying 3% closing. This required me to only show 24 months of rent history. No income, employment, no verification of deposits or reserves required either. I am ecstatic! I don't mind this rate at all considering that with most any other type of loan I would not have qualified on my income, employment, or reserves (in my name). Our house payment with escrow is only $50 more than our rent. Closing on 31st I hope."
liverichly said: "Hope everything goes smoothly for you next week."
oubeta said: ":confused:
Well we are hinda of heartbroke. I paid for the true credit and pulled my scores and was happy to see the were all over 600. The morgage company we were getting our loan through said they couldn't process our loan because my credit score was only 490. How can it be so much higher on truecredit? He said he pulled all three and took the middle one. I'm confused. :confused:"
liverichly said: "When applying for a mortgage the lender will use the middle of three, or lower of two scores. There are a handful of lenders which take the high score or will average all three, but are sub-prime lenders which could be a disservice to someone who has a 690 score... was that what your wife's scores when the broker pulled them?
I've found the consumer website myFICO.com generates a score most accurate to what I've pulled with First American CREDCO, NCO Credit, and NCCheck (all 3 are credit vendors which allow a mortgage broker to access the information from the CRA's). I'm not sure if TrueCredit uses the same scoring model as myFICO.com, I'd suggest to look into that question within the credit help section of this website before purchasing your reports again."
FICOdemon said: "True credit is not anywhere near a Fico Score. Pull your scores at myfico and then shop. There are sometimes difference in the fico scoring that mortgage brokers are using, so if one isn't quite there it might be worth trying a different one, as long as you keep all the inquiries within 14 days. ( It's supose to be 30, but I would still go 14 for now.)"
oubeta said: "[QUOTE=FICOdemon]True credit is not anywhere near a Fico Score. Pull your scores at myfico and then shop. There are sometimes difference in the fico scoring that mortgage brokers are using, so if one isn't quite there it might be worth trying a different one, as long as you keep all the inquiries within 14 days. ( It's supose to be 30, but I would still go 14 for now.)[/QUOTE]
Ya I agree mine were off by over 100 points."
kevin said: "If your wife's scores are still relatively the same, why don't you go stated income with her FICO score? There are lenders that lend on 100% purchase loans with the requirement of a 660-680 FICO score. As long as she is currently employed, it shouldn't be a problem."