beeboah Posted March 29, 2007 Report Share Posted March 29, 2007 I have a few baddies left on my CR, and have the below listed FAKO scores (yes, I know they aren't FICO scores)A local lender says that my income is too high to purchase the property that I want to buy in certain counties, but the houses are too expensive for me in the counties that my income is not too high.Any thoughts on who I might want to try?Local lender asserts that they can't do a 100% subprime loan anymore if my FICO is below 660, but can do one with a 620 if I buy in the areas that I can't afford.They said that just 2 weeks ago I could have gotten 100% financing where I wanted with a FICO score of 580.I have read what happened to the subprime market, but did it happen to EVERY subprime lender or is this lender jerking my chain?Any lenders that I might want to try? Thanks Link to comment Share on other sites More sharing options...
momof5 Posted March 29, 2007 Report Share Posted March 29, 2007 "Sub-prime" @ 620 - 660???!!!Whatever! Go see another broker. Link to comment Share on other sites More sharing options...
beeboah Posted March 29, 2007 Author Report Share Posted March 29, 2007 lol, any thoughts of where to look? Link to comment Share on other sites More sharing options...
momof5 Posted March 29, 2007 Report Share Posted March 29, 2007 I was checking out some other threads and the Feds are now suggesting that those *will* be the new subprime! OUCH!Honestly, I depending where you are, I wouldn't buy right now......My case....House sales are stagnant. Inventory of New Spec homes is up. Prices are just starting to decline.... Prediction for my area? Decline in price for the next 2 years running @ 1%/year!(I am spoiled....I am a vet so I get my VA eligibility and VA loans are kickin it at 6.0% right now.)If I purchase a house identical to the one I am in, my payments would be over $1500/mo. If I stay renting this house, I pay $1300/mo. I save $200/mo for 2 years and I don't OWE more than the house is worth 2 years from now...Gives me 2 years of score increases and $$$ in savings!"Buying" a house isn't as important as when you purchase and how much you pay. My last house I purchased for $138,000. 2 yrs 11 mo later, I sold it for $198,500. That was a year ago. Now 1 year later, those folks have no equity and are about to lose money for the next 2! Link to comment Share on other sites More sharing options...
beeboah Posted March 29, 2007 Author Report Share Posted March 29, 2007 I was checking out some other threads and the Feds are now suggesting that those *will* be the new subprime! OUCH!Honestly, I depending where you are, I wouldn't buy right now......My case....House sales are stagnant. Inventory of New Spec homes is up. Prices are just starting to decline.... Prediction for my area? Decline in price for the next 2 years running @ 1%/year!(I am spoiled....I am a vet so I get my VA eligibility and VA loans are kickin it at 6.0% right now.)If I purchase a house identical to the one I am in, my payments would be over $1500/mo. If I stay renting this house, I pay $1300/mo. I save $200/mo for 2 years and I don't OWE more than the house is worth 2 years from now...Gives me 2 years of score increases and $$$ in savings!"Buying" a house isn't as important as when you purchase and how much you pay. My last house I purchased for $138,000. 2 yrs 11 mo later, I sold it for $198,500. That was a year ago. Now 1 year later, those folks have no equity and are about to lose money for the next 2! Valid points, having lived in FL, the DC metro area...or actually the Greater DC metro area is a tough market to buy anything affordable and commutable.Area includes WV, VA, DC, MD, and PA.I see something that I like, and I have a good feeling about jumping on it.Thanks for your thoughts. Link to comment Share on other sites More sharing options...
jq26 Posted March 29, 2007 Report Share Posted March 29, 2007 I see something that I like, and I have a good feeling about jumping on it.There are lenders out there. The difference is that two months ago lenders were closing on riskier loans (non-prime, no docs, and 100%+ financing), bundling them into CDOs and selling them to investors looking to round out their portfolios. When the default rates ticked up and the cost of insuring the bundled debt went through the roof, Wall Street moved to enforce the buyback provisions on some of the loans so lenders had to buy some of the debt back. One by one the lenders selling subprime paper below a suitable risk premium bit the dust and filed 11 to protect what little assets they had left. And Wall Street wants no parts of buying subprime paper, at least until the dust settles and they can sort out their losses. Now, lenders are forced to hold their own notes instead of acting as a bundler and selling the paper off. Notice how much they have tightened their lending criteria when its their own company that takes a bath when a borrower defaults. So lenders are being cautious, require documentation and possibly some sort of money down, scrutinize appraisals, but there is still money available. The other thing that I wanted to mention is that housing markets fluctuate from area to area, even block by block in soem cities. I am seeing this first hand as I have been looking at so many properties and relative comps. Some neighborhoods I have looked at have gone up 25-30% in 2006 despite the natiopnal trend. And a neighborhood around the corner has year over year comps of negative 10%. Location really is everything, so if you are comfortable with it, no time like now. Link to comment Share on other sites More sharing options...
crnbread73 Posted March 30, 2007 Report Share Posted March 30, 2007 There are still some lenders will to do 100% with low scores. More commonly you are going to see more of 90% - 95%. We work with one that will allow credits scores down to 540. But they are getting harder to come by and the interest rate is not great. You just really have to hunt. And look for a good (really good) broker in your area. They are going to be more familiar with programs that are available to you. And if your housing market there is like it is here in California alot of sellers and builders are really lowering their prices. Too many foreclosures. Link to comment Share on other sites More sharing options...
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