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first post - be gentle =)


Jasazick
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Ok, I have spent the better part of today reading these boards and I must admit am very impressed with the amount of wonderful information here!

My wife and I are just beginning our debt fixing with the goal of buying a house as soon as is possible.

Our scores are 550ish and 590ish though after reading about some of the debt cancellation methods I don't see why we can't clean our reports out somewhat. Most of what was listed on her account seems to be listed in error, and the issues on mine will be taken care of through making offers of payment with the stipulation of deletion.

I realize that won't instantly give us pristine scores but it should move us into a reasonable range. We are expecting a small sum on money from a car accident settlement and will use that money to pay off any outstanding debt (and hopefully have the items deleted off the report) and then use the rest as a big down payment.

OK, after all that babbling, when we finally get down to applying for a mortgage (6 months to a year from now) how much will a larger down payment help us? The houses we are looking at are in the $119,000 range and we expect to have $50,000 for a down payment. Our combined income is around $35k a year and once we get our credit cleared we will have no outstanding debt.

I guess I need to know is a $50k down payment enough to offset our less than pristine credit rating? If so, how much will it offset the credit?

-Jasazick

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Ok, I have spent the better part of today reading these boards and I must admit am very impressed with the amount of wonderful information here!

My wife and I are just beginning our debt fixing with the goal of buying a house as soon as is possible.

Our scores are 550ish and 590ish though after reading about some of the debt cancellation methods I don't see why we can't clean our reports out somewhat. Most of what was listed on her account seems to be listed in error, and the issues on mine will be taken care of through making offers of payment with the stipulation of deletion.

I realize that won't instantly give us pristine scores but it should move us into a reasonable range. We are expecting a small sum on money from a car accident settlement and will use that money to pay off any outstanding debt (and hopefully have the items deleted off the report) and then use the rest as a big down payment.

OK, after all that babbling, when we finally get down to applying for a mortgage (6 months to a year from now) how much will a larger down payment help us? The houses we are looking at are in the $119,000 range and we expect to have $50,000 for a down payment. Our combined income is around $35k a year and once we get our credit cleared we will have no outstanding debt.

I guess I need to know is a $50k down payment enough to offset our less than pristine credit rating? If so, how much will it offset the credit?

-Jasazick

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Depending on a few factors, like how much your minimum payments are; how long have you had some of your credit cards/cars etc (called tradelines) have been open (optimum is 24 months, and one an installment type loan (like a car) that started off at 5K+ and payments are 151+ per month

Job history & etc, you should qualify for a subprime loan in the 90% range. With that kind of down payment, and no collections, you should qualify for a loan that is a conventional/prime rate loan - but with slightly higher rates due to the credit scores.

From what you said you can purchase whenever you see something you want.

Charles

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Depending on a few factors, like how much your minimum payments are; how long have you had some of your credit cards/cars etc (called tradelines) have been open (optimum is 24 months, and one an installment type loan (like a car) that started off at 5K+ and payments are 151+ per month

Job history & etc, you should qualify for a subprime loan in the 90% range. With that kind of down payment, and no collections, you should qualify for a loan that is a conventional/prime rate loan - but with slightly higher rates due to the credit scores.

From what you said you can purchase whenever you see something you want.

Charles

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