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Mind spins with confusion and heart starts breaking.(long)


parko03
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Well, DH and I are looking into buying our first home sometime early next year. See add in paper, says free homebuying classes. Figured it couldn't hurt cuz we don't know crap. Got back from first class(of two) about 3 hours ago and have been reading since then here.

I am so confused. Turns out its for FHA and special type loan programs. No biggie. My problem is that she says that to qualify for ANY loan to get a home that you cannot have a single late in past 12 months and it must be 12 full months that ALL collections, CO's, Judgements etc have been paid. HUH??

I asked her after class to explain further and she said exactly the same. NO exceptions. Then proceeded to tell me that anyone who would offer a home loan under any other circumstances was a predatory lender.

So I sit and read and read all these posts. I don't understand because I read how several have medical collections that are still due and still get a home. I see how someone has credit report pulled, Loan guys says pay these, they pay them and get their new home 4 months later.

So I sit and evaluate our situation.

DH 40,000yr

ME 10,000yr

DH credit 4 pos tradelines(1 is brand new thanks to you guys)

4 paid collections

2 paid judgements

1 CC with lates 3 yrs ago

1 Unpaid utility bill(collection)Plan on paying soon

Med FAKO score 540

ME 10 Pos tradlines(student loans)

1 Paid judgement

BK 10/01

Several paid collections and accounts listed IIB

1 outstanding medical(will also pay soon)

Median FAKO 560

Etc, ETC, but she has basically crushed me. So if I go and pay DH's last unpaid debt. THEN have to wait 12 months to even start the process. WTF. Im trying to do this right, and slowly with patience but NOONE is perfect. I asked her if this rule applied to the govt stuff only and she reiterated that it was for ALL lenders.

Someone please elaborate on this for me. I don't understand when I read daily how some of you got your houses with some slight issues. I know you can't ALL be going through predatory lenders.

Just need encouragement I guess. I am slowly improving our credit scores and building credit but I can only do so much. THanks for listening.

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Don't let her get you down. We bought a house with a post BK but it was 4+ yr old but I am sure we had some lates on there as well. Our house is also FHA What we had to do is write an explination. The best thing you can do is go to a bank and prequalify for a home loan. Then you will know for sure what you need to do.

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people with bad credit use preditory lendors

and are thankful for them... you can espect

a higher interest rate and big closing cost..

even the credit cards we use soak us.... but

the up side is if you can get a loan and it reports

on your credit report for a year or two or three

then you can refinance and get a better one..

same with the preditory credit cards...

you start off with the bad rates and as your credit

imporves you move to the good rates...

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So her termonology use of predatory lender is way off. She made is sound as if they are just out to rip people off. I got a negative vibe when she spoke like that.

So basically we need to go with what(whom) we can get, improve our credit greatly and refinance.

That means, though she negates the term, a predatory lender is just someone willing to give some a shot instead of turning them down immediately???

Im trying not to let this put a damper on all my efforts but I knew you guys would explain this all to me. Thanks so much.

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The best thing you can do is go to a bank and prequalify for a home loan. Then you will know for sure what you need to do.

A bank will tell you the same thing that istructor did. See a good mortgage broker. For example our office has access to seven different FHA lenders. Some have different "tolerance levels" than others.

people with bad credit use preditory lendors

and are thankful for them... you can espect

a higher interest rate and big closing cost..

It always is a good idea to get a second opinion. That is all determined by the type of credit profile you are using

Predatory lending can best be defined as reaching or exceeding certain interest rate threshholds (Fed defines it, and States refine it) above treasury securities. Also there are fee guidelines set by the Fed, and Reset by some states (any loan with fees greater than 7.99%)

I am so confused. Turns out its for FHA and special type loan programs. No biggie. My problem is that she says that to qualify for ANY loan to get a home that you cannot have a single late in past 12 months and it must be 12 full months that ALL collections, CO's, Judgements etc have been paid. HUH??

With what you describe above paying those collections off (and provided you have no late payments since the bankruptcy), and you will be fine with FHA. Even if you have lates after the bankruptcy, then your husband will still qualify.

Which brings me to my theory on predatory lending: Predatory lending is when a broker or lender does not make an effort to try to get the customer the best possible mortgage and settles for something less. Might want to tell that lady that after you get approved for an FHA loan.

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i started here at this form

over a year ago with a zero credit

score... my first card was a secured

card from first premier (preditory) but

i have no complaints...high fees and high interest..

i pay it off each month...

then in a few months i got a 300 dollar card

from household...(another high interest)

then next came target and chevron...

then i bought a house for 330k 6.6 percent interest

locked for 2 years arm... 80/20 the 20 is at 11%

thank God

I bought another house with the same deal...

my scores are low 600's you know these so called preditor lenders

sure do report to all 3 cra's and they report well...so you can build

your credit with them...

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