What are my chances for a decent interest rate?

[Rmich]

Ex-569(they have an account listed twice, I have disputed it)

TU-633

EQ-641

Derogs:

Past 12 months, 2 30 day lates(5/2003)

Past 24 months, 2 30 day lates, 3 60 day lates(same time period)

1998 bad year(multiple derogs)

Employed at same job over 10yrs.

Monthly debt: aprox. 800/month

Income: aprox. $38,000/yr.

No money for down payment.

Looking for a home around $90,000.

[herauntsis]

Have you tried a goodwill letters to get the recent lates removed? Or even the old lates? If you aren't in a hurry to get a house, I would try to get your scores up some. You can qualify for 100% financing right now, but you are going to get a much better deal if your scores are higher.

Also, you are going to need some cash for closing costs and reserves.

Is the $800 per month debt installment or revolving?

[Rmich]

Thanks for the response.

I'm not familiar with the process of submitting goodwill letters.

Many of my derogs from 1998 should go away next year.

I thought that maybe I should look for a mortgage now because people are saying they will be going up after this year. I thought that I either pay a higher interest now or wait til they go up and still pay a higher rate.

My monthly debt is credit cards and car payment.

[amortgageman]

I could pencil in a 6% fixed first mortgage @ 80%, and a second mortgage to cover the remainder @10.75%.

That definitely is not too shabby. The first mortgage would be a lower rate than FHA after the PMI insurance.

[Rmich]

Thanks for the info amortgageman. Could gift funds be used with this loan?

I'm going to post in the credit forum about writing a goodwill letter to remove the lates.

[amortgageman]

You are in safe ground. You could use whatever you want as far as a gift letter, and also up to 6% seller concessions for closing costs.

Be prepared to at least pay your prepaid expenses though. That would be one year homeowners insurance, plus two to three months reserves to set up your escrow accounts for each the homeowners insurance and property taxes.