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Everything posted by firstsource

  1. I would suggest that you go to the PHFA (Pennsylvania Housing Finance Agency) website. Depending on your circumstances, you can get an interest free loan for up to 3,000 from them. The note is due only when you sell your home Charles
  2. Are the payments you make the first 4 years paying anything towards principal? I don't understand where they are coming up with a figure of your owing 175K after making payments for 20 years. Charles
  3. When you add on, from my experience be sure to have the entrance to the new bedroom "down a hall" so that someone would not have to go through another living area, like a kitchen/bedroom etc. This way when you are ready to sell your new home it can be listed as a 3 bedroom. Charles
  4. It depends on how old the collections are. Most of the time if they are over 12 months old they are not taken into effect for a loan approval. I caution you to not pay any collection that won't PFD. It will just lower your credit score. If your LO says that you have to pay them off, don't pay them until closing. You can bring the funds to the title co/attny office and give them the money and they will pay the account off. Charles
  5. Sad thing about some programs that are authorized by VA and FHA. They exist on the books, but no lender will lend for those programs. From my research, the only repair money that lenders will allow is to make the home more energy efficient. best to ask your broker (or call up several brokers) to confirm what I found out. Charles
  6. I would suggest that you hire a RE attorney. They are trained to pay attention to detail. With a FSBO you are probably doing the Negotiating yourself. A tip, VA will allow the seller to pay "all reasonable closing costs" (not the fixed 3% for conventional or max 6% for FHA) Your Loan officer will give you an estimate of what typical closing costs are in your area, and ask for that amount. The lender will arrange the title/appraisal/ people for you. Charles
  7. Yes, if you can PFD those old accounts that will boost your scores. All you need in today's environment is a 620 score and you are very close. Don't pay off anything that you can not get -IN WRITING- from the creditor an agreement to delete upon receipt of the payment. "if it wasn't written, it wasn't said". If that won't work, you can count on 1-3 increase in your scores as time goes on. Charles
  8. I would need more info to tell you the "for sure" answer, but generally, you will need to document that the house you say is a rental, is in actually a rental. Once you have done that then you just get a loan on your home. "sad" thing about rentals is that your cost is figured at 100% (PITI) and your income is counted at 75%. Charles
  9. Rental credit is a problem to use as part of the down payment. You need to establish what the actual rental would be per month. This is best done by getting an appraiser to give you a "market rental analysis". This will give you a rental figure that the lenders will accept. Then the difference between the market value and what you are paying is going to be what you can use towards the down payment. ie: the rental analysis says rent should be 500.00, but you are giving them 750, you can count the 250.00 per month towards the down payment etc. Charles
  10. My 2@ worth If your goal is to lower your interest rate, I would do nothing. The $ spent (even if "rolled into the loan") will exceed the benefit. You would have to save 200 or so per month to make sense, and not possible with a loan balance of 32K. If your goal is to build an addition on to your home, you are "maxed out" for a cash out loan in Texas, to 80% of the value of your home. So, before closing costs you could get 40K from the refinance. If you could do the remodeling/addition you want for that amount of $, this is an awesome time to do that kind of loan. You will never see these rates again. Charles
  11. I would estimate that your DTI (Debt To Income ratio) would be in the range you should be at, if you went by the rule books (and there is some flexibility I have found) you can be as high as 31% for the housing portion and 43% for your total Debt. Depending on what your taxes are I would guess that your total DTI would be less than 35%. As long as the lowest middle score of both of you is over 620 you are in good shape for an FHA loan. Rates don't improve after that level, unless you are considering going with a conventional loan. Unless you have 20% to put down, I would not even consider anything other than an FHA loan. Charles
  12. What are the scores for the other two? Do these companies that are not showing up on your credit report submit to credit bureaus? Charles
  13. If she is over 62, a reverse mortgage would work great. As long as she lived in the home, there would be only payments for Taxes & Ins. The loans are figured assuming that the borrower lives to age 100. They still stay in the home as long as they live, and people are living to well over 100 these days. The loan is currently at 2.15%. That is an adjustable rate. Generally means that the loan is getting larger every year, I would expect that the rate will average 6% over time. The only time that Reverse Mortgages are a problem, is when the heirs feel that they are getting "cheated" out of their inheritance. It is not the case, because the ownership/title is always the borrower or the estate. Charles
  14. Depending on the other factors about your situation, you can probably get approved for a lot higher DTI than the 28%. Just be careful to not over extend yourself. There are two versions of 203K. One where the repairs are <35K and one where they are over. For the one under, like the furnace replacement, you should be able to do all of the work by a local contractor) If it is just the furnace issue, or things like it that would be done by a contractor, I would suggest that you just apply-go for it. Charles
  15. Sorry to hear about your mom & what you went through. Just from what you have said here, you should look into getting a loan. I would estimate that your scores are in the 560 range and that would work. When you talk with a LO, explain your repayment plan to them. The fact that you will be able to rent out the inherited home will make a big difference. Charles
  16. I have poked around and have not seen anything bad about them. What they are doing is not much different than what others can and will do. If they were a "bad apple" it would have shown up. Credit scores are not a deal killer anymore. Your credit history is the deal killer if it is bad. You need to have had good credit/payment history for the past 12 months. That is all. IMHO, if you don't have a good payment history for that long, I would suggest that the purchase of a home be delayed until you have that, and some reserves in the bank for the stupid stuff that life hands you Charles
  17. Let me ask you a few questions, which may help you to ask more questions. You list an income of 68K. Is this your income from your Schedule C of your taxes, and is that the average of the past 2 years? {Many times people take so many deductions that the income that they can use to qualify for a loan is too little. Hopefully after all of your deductions, your income is still averaging 68K} ----------- Can validate that your business (1099 income) started on or before 1 Dec 2006? Your credit score. FAKO's are very good to use as a tracking device, but when you get to this point, you should pay the $ and go to www.MyFico.com and get a tri merge. Scores you get from MyFico are much more accurate than any others that you can get from internet places. Be prepared to see different scores when a bank/mortgage Loan Officer runs your credit, but should not be too much of a difference. -------------- Best Rates are when you have a 620 score, next best 580=+, next 560=+. What can you do to get your scores over 580? My suggestion is to wait until then, unless you are presented with an awesome bargain. ----------- My experience says that you have not had your new "good" tradelines for very long. Good news is that every month that goes by, your scores will improve. Sort of along the lines of the saying that "time heals all wounds". --------------- If you pay off or pay on your collections before closing, your scores will go down. Don't do it. --------------- Hope you have lots of more questions now. Charles
  18. What is happening to you is what has been happening to a lot of people. I think that you should give up. Don't put any more money into a "sinking ship". If you can arrange a short sale, great, as it will decrease your long term liability. Put the money you could put into the house payments into a savings account/annuity/etc. As many are finding, having a reserve account to take care of 3K car repair & etc is very comforting. Currently you won't have to pay taxes on your short sale, but the lender can come after you to pay the difference between what you owe and the amount the home sells for. Charles
  19. No problem at all. What FHA, and actually any program, is looking for is job stability, with either level income or increasing income. They don't like situations where the income is decreasing, naturally... HOWEVER several times a wage decrease worked because it was evident that the decrease was short term and they were now in a position to advance into better paying/higher responsibility type jobs. Case in point: He worked at a factory "on the line". He got an opportunity to become a manager for another company that was in the service industry. The employer wrote a note explaining that after 6 months training, he was going to not only be making much more money than before, but would be in line for promotions in this rapidly growing company. Charles
  20. Typically FHA lenders only care about what has happened in the past 12 months. As long as you have been "clean" that long, and you have the down payment of currently 3%, raised to 3.5% in Jan, you are probably good to go. To easily count your income, you will need 2 years employment history. If you have not been working that long, you may be able to get by with a letter explaining the situation, but that is rarely accepted.
  21. It seems that investors are realizing that with 3%+ down payment the default rate is acceptable. The bank I work with has an investor that will buy FHA loans with as low as 540 scores. The best thing is to wait until 620+ is reached, of course, but now that the "dust has settled" investors are willing to take a bit more risk than a few months ago.
  22. If I remember correctly, the condo that you want to buy is what is called a non warrantable, in that less than 50% of the condos are owned by occupants instead of investors. Loans on those type properties are very risky, in that non-owner occupied properties are typically not as well maintained. This means that if a borrower should default on their loan, the lender/investor will have a more difficult time to sell the property. So, your interest rate will be higher typically, and the loan will have higher costs to close. And yes, Loan Officers basically work on commission, based on making 1% of the loan. It is the same amount of work to do a loan for 50K or a 300K. This being said, I personally don't think that you should put up with a rude person. I would suggest that you go now to the bank president and explain the situation. Hopefully you will be turned over to someone that is not rude. Plus you will be doing the bank a great favor, and the others that possibly come in contact with this LO Charles
  23. Sorry, had to leave for a few days. A family gift is where a family member (Parents/grandparents/siblings/children only) gives you some money to purchase your home. The controversy in our business is that this seems to favor the people from well to do families, it stops the sellers from helping people to purchase their home, but not the people from families that have money. I thought to help the housing crisis that FHA would be forced into allowing the Down Payment Assistance program to be used again, but does not seem that it is going to happen soon. Please write an email to your Senators & representative asking them to get one of the new proposed laws passed, so the "not rich" can purchase a home. Charles
  24. I have had a different experience when trying to use Zillow as a home value indicator. Their values have been off as much as 35K, both directions. If you are serious about making a large investment like this, I would suggest that you contact an appraiser and pay them to give you a value. They will take actual sales in your location for the past 6 months and that is how they will determine value. I always ask for a low/realistic estimate, and that seems to work out great. If your Loan Officer has a good relationship with an appraiser they can also get that information and it is free. Charles
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