what do u need in todays world to get a mortgage?

[divinemadness]

how much credit? what kind of credit? what score? ect?? even if its qualifying for the worst rate.. what do u need in this world????????????

what kind of circumstances?

[debtmamma]

one loan officer told me they want to see 4 accounts paid over 12 moths, and they can use phone bills, rent, utility, not only bank loans.

I have no idea if that is true though I don't have a mortgage!

[divinemadness]

one loan officer told me they want to see 4 accounts paid over 12 moths, and they can use phone bills, rent, utility, not only bank loans.

I have no idea if that is true though I don't have a mortgage!

i heard that too, hmm

[YoUrFrIeNdMiKe]

in the meantine i would rent while converting a small amount of your cash each payday to silver. in a year or two when the housing market tanks, your silver will likely have performed very well sell it you should have a huge depost and better credit. no lender will turn you down at that time. just my opinion patience is a virtue

[divinemadness]

in the meantine i would rent while converting a small amount of your cash each payday to silver. in a year or two when the housing market tanks, your silver will likely have performed very well sell it you should have a huge depost and better credit. no lender will turn you down at that time. just my opinion patience is a virtue

silver? whats silver? u mean in like the metal?????

[YoUrFrIeNdMiKe]

article 1 sec 10 us constitution. silver is money the dollar is fraud and dropping like a lead balloon. the silver stocks will explode in price compared to owning the actual metal, but with the metal there will be no risk and a nice reward. i am not selling anything, i am just someone that cares.

[jq26]

If you have some money towards closing, decent credit scores, and steady income to support a purchase, you will find a loan. There are lenders out there that will fund. Go FHA if possible.

What you won't find is the 'no documentation' loans and the loans that create neg amortization (less than interest only). These loans were being "abused" to qualify many homeowners for homes that they had no business purchasing. Both loan officer/mortgage broker and applicant knew this. But perpetual home price increases and the promise of fast money gave everyone involved an appetite for risk. That risk has now come home to roost.

I am not a mortgage broker, but if you have 600 scores and at least enough to cover closing and 3% of the price of a home, then my guess is you can make a purchase. Rates are decent and prices have sagged so you can really make some in-roads on affordability.

article 1 sec 10 us constitution. silver is money the dollar is fraud and dropping like a lead balloon. the silver stocks will explode in price compared to owning the actual metal, but with the metal there will be no risk and a nice reward. i am not selling anything, i am just someone that cares.

OT, but I agree with most of what you say. Silver has realy skyrocketed in value. I really regret not buying in the $11 range last year. And historically, silver has always had higher multiples than current with respect to gold, so it has some additional catching up to do. A guy I work with is about to retire at the age of 50. His entire savings is in hard currency silver (seriously, it is in his basement!!!).

However, the dollar has already been plastered. In fact, after years of devaluation, it is expected to recover 3% this year. So it is possible the run on metals will come to a halt. Or maybe not. The simple answer is no one knows. That's why it is smart to diversify. The people that bought gold in 1980 are still WAY below water on an inflation adjusted basis, so there are no guarantees.

One more thing to consider: when you buy stocks (long-term), you are buying current and future earnings. They are like little 'machines' that generate income because they are fractions of income-producing companies. When you buy metal, you are purchasing an inflation-protected asset. But it has no internal income-producing mechanism. You don't get dividends and the metal does not retain accumulated earnings and build value through ROE. So in some ways, stocks are less speculative than metals if properly diversified. In addition, through the use of debt-issuance, corporations have the ability to lever your equity investment and amplify growth, something non-leveraged metal purchases cannot do for you.

[Magdalen77]

Okay JQ, if I'm looking for a house that's about 150K or less (as less as I can get and still have a decent place). Which is eminently possible in my old suburb of Philly. How much do I need $4500 for a downpayment and how much would closing costs be?? I have a decent job, make over 60K and I've been there going on 15 years. All of my FICO scores are finally in the 600s with a top score of 656.

[jetscarbie]

I just purchased in Oct. My hubby's middle score was 621. He has 10 medical collections that equal to about 1700 or so. He makes decent money. We had 5% saved and our broker said that is what helped us. No debts over 1 year old except a Ford bill. He had 2 cc but they were only months old so they didn't use those.

We had to get 3 letters of reference from utlities of payments made on time for atleast 1 year. I turned in electric, heating oil, and phone.

We made the sellers pay all the closing cost.

[jq26]

Okay JQ, if I'm looking for a house that's about 150K or less (as less as I can get and still have a decent place). Which is eminently possible in my old suburb of Philly. How much do I need $4500 for a downpayment and how much would closing costs be?? I have a decent job, make over 60K and I've been there going on 15 years. All of my FICO scores are finally in the 600s with a top score of 656.

I pulled out my settlement sheet from a home I purchased (FHA) in April 2007. I put 3% down, and paid all closing costs. House was roughly $200k. $6000 down, 1.5% upfront PMI = $1500, One year's taxes= $1500, One year's insurance: $1500, Origination fee to lender: $2000, Title insurance: $1500, Appraisal: $500, All miscellaneous gov't fees & stamps: $500, real estate transfer TAX: $8000 (I paid $4000 & seller paid $4000), plus I bought the loan rate down with another $1000. There are other small things like doc fees, pest cert. and flood cert. fees and a home inspection ($500) that I did not include.

So with 3% down...I think all in I came to the table with roughly $20k: $6000 down payment + $14500 more required at settlement (looking at line 1400). Yes, it does go quickly....

You may be able to roll some costs into your closing and/or have seller pay for some. And don't buy down your rate. It made sense here because I plan on having this property for at least 15 years.

Speak to a broker (Charles aka Firstsource maybe?). There are so many permutations to the way you can finance that my example is just one unique combination.

FYI- transfer tax in Philly is 4% of purchase price. In the suburbs it is 3%. But your real estate taxes will likely be much higher so it may be a wash with respect to closing.

[Magdalen77]

I pulled out my settlement sheet from a home I purchased (FHA) in April 2007. I put 3% down, and paid all closing costs. House was roughly $200k. $6000 down, 1.5% upfront PMI = $1500, One year's taxes= $1500, One year's insurance: $1500, Origination fee to lender: $2000, Title insurance: $1500, Appraisal: $500, All miscellaneous gov't fees & stamps: $500, real estate transfer TAX: $8000 (I paid $4000 & seller paid $4000), plus I bought the loan rate down with another $1000. There are other small things like doc fees, pest cert. and flood cert. fees and a home inspection ($500) that I did not include.

So with 3% down...I think all in I came to the table with roughly $20k: $6000 down payment + $14500 more required at settlement (looking at line 1400). Yes, it does go quickly....

You may be able to roll some costs into your closing and/or have seller pay for some. And don't buy down your rate. It made sense here because I plan on having this property for at least 15 years.

Speak to a broker (Charles aka Firstsource maybe?). There are so many permutations to the way you can finance that my example is just one unique combination.

FYI- transfer tax in Philly is 4% of purchase price. In the suburbs it is 3%. But your real estate taxes will likely be much higher so it may be a wash with respect to closing.

Wow. Yeah, even a 100K house in my town pays about 3000 in taxes. I was told by my insurance guy that the homeowners insurance for what I'm thinking of would be about 500-600/year. I was like, how come it's cheaper than my car insurance (which is about 650/year). He said claims on homeowner's insurance happen about every 11 years, car claims about every 3 years.

[Magdalen77]

I just purchased in Oct. My hubby's middle score was 621. He has 10 medical collections that equal to about 1700 or so. He makes decent money. We had 5% saved and our broker said that is what helped us. No debts over 1 year old except a Ford bill. He had 2 cc but they were only months old so they didn't use those.

We had to get 3 letters of reference from utlities of payments made on time for atleast 1 year. I turned in electric, heating oil, and phone.

We made the sellers pay all the closing cost.

My middle score (TU) is 620. Most of my CA except for the one ID theft account (I'm working on getting rid of that) are in the couple hundred dollar range. My big issue is a repo from about 4 years ago where the loan company claims that I owe them 9K. I say, hell no. I made +19K in payments, they got 6K when they sold the car. The original price of the car was about 14K. I'll be damned if they get another cent out of me. The SOL for PA is 4 years and we're pretty close to that now. They've never made any effort to collect, just torpedoed my credit reports by claiming a 9K charge-off. I might wait until I'm absolutely sure the SOL is up and then play let's make a deal with them, PFD. So, maybe they can get a little out of me, but it ain't gonna be 9K.

[jq26]

Wow. Yeah, even a 100K house in my town pays about 3000 in taxes. I was told by my insurance guy that the homeowners insurance for what I'm thinking of would be about 500-600/year. I was like, how come it's cheaper than my car insurance (which is about 650/year). He said claims on homeowner's insurance happen about every 11 years, car claims about every 3 years.

In Philly, the roofs are almost all FLAT (due to the rowhome style). The flat roof issue and the proximity to the higher crime areas of the city combine to make insurance about double what it costs in the suburbs.

But there are big differences in the way they tax. Philadelphia has lower real estate taxes but they take almost 4% of your earned income. At least in my township outside the city, the real estate taxes are about double but there is 0 local earned income tax.

[firstsource]

FHA insures loan programs that were written to help people in these situations. The general guidelines are that you have paid your bills on time for the past 12 months. That you have 2 years job history. That you are not buying more of a home than you can afford.

My suggestion is that you be very conservative in the first home that you purchase as far as how much your payments are. Once you have the hang of home ownership in a few years, then sell and buy another home (in that order). There are so many hidden costs that crop up-you may have to buy a lawnmower or pay someone to take care of the yard, the toilet is going to back up and when you call the landlord, you are the one that answers the phone, etc.

Charles

[jasen]

how much credit? what kind of credit? what score? ect?? even if its qualifying for the worst rate.. what do u need in this world????????????

what kind of circumstances?

I just closed my mortgage last week. 200k, @ 6.375% (house appraised at 250). My scores were all mid 600's, but no derogs, outside of an accidental late payment on a credit card a year ago. 4 active credit cards (couple no balance, and a couple high balance, so utilization was still a bit high), couple paid off car notes, 1 active car note at around 16k. Couple more old closed credit card tradelines. Been at my current job for 3 years, and my debt-income ratio was pretty low.

This was a refi, the old loan was in my wife's name (and her ex-husband was still on it from years ago), the new one is in only my name, because her credit is not as good, and I qualified on my income alone. We took out about 30k in equity, and part of the deal was that they sent me checks to pay off the cards that carried a balance to drop my debt-income and utilization. This is my first mortgage.

[Magdalen77]

In Philly, the roofs are almost all FLAT (due to the rowhome style). The flat roof issue and the proximity to the higher crime areas of the city combine to make insurance about double what it costs in the suburbs.

But there are big differences in the way they tax. Philadelphia has lower real estate taxes but they take almost 4% of your earned income. At least in my township outside the city, the real estate taxes are about double but there is 0 local earned income tax.

My local tax is over 2%. So, now you probably know where I am. The townships around us are either low 0.5% or none. It wouldn't matter for me because I work here as well and the over 2% applys to non-residents as well.

The trade off is that houses here are about half of price of the surrounding townships.

[Magdalen77]

FHA insures loan programs that were written to help people in these situations. The general guidelines are that you have paid your bills on time for the past 12 months. That you have 2 years job history. That you are not buying more of a home than you can afford.

My suggestion is that you be very conservative in the first home that you purchase as far as how much your payments are. Once you have the hang of home ownership in a few years, then sell and buy another home (in that order). There are so many hidden costs that crop up-you may have to buy a lawnmower or pay someone to take care of the yard, the toilet is going to back up and when you call the landlord, you are the one that answers the phone, etc.

Charles

What about my repo situation? The one FHA mortgage broker I spoke to said he could write me a mortgage if that wasn't on my reports or it showed as satisfied. Apparently they don't like the fact of a possible lien against the property. I really don't want to pay these horse's heinies anything. Maybe I could dig up $500 or $1000 to make it go away, but any money I give them is money that's not available for me for a downpayment, closing costs, etc.

I have a good job and I've been there for 14 going on 15 years. Since I make about 60K and I'm looking for a house in the 100-150K range, I don't think I'm overdoing it for my income. I went though the first-time home owners' course for my county and the counselor there said based on my income 200K should be the maximum price I should go for. Since then prices have gone down in my area, so I see no reason to spend that much on a house. (All the houses that were listed at 175, 185K in June are now down to 140-150K).

[jq26]

Yah, I know right where you are. Good luck. Sounds like you have all of the foundations you need to make a sound purchase.

[divinemadness]

i just wanted to say thankyou to everyone- now i know what i need to do to get a mortgage and own my own home.. thats the first step -- cause down the road i wanna buy rental property.

thanks so much to everyone!!

[amortgageman]

What about my repo situation? The one FHA mortgage broker I spoke to said he could write me a mortgage if that wasn't on my reports or it showed as satisfied. Apparently they don't like the fact of a possible lien against the property. I really don't want to pay these horse's heinies anything. Maybe I could dig up $500 or $1000 to make it go away, but any money I give them is money that's not available for me for a downpayment, closing costs, etc.

I have a good job and I've been there for 14 going on 15 years. Since I make about 60K and I'm looking for a house in the 100-150K range, I don't think I'm overdoing it for my income. I went though the first-time home owners' course for my county and the counselor there said based on my income 200K should be the maximum price I should go for. Since then prices have gone down in my area, so I see no reason to spend that much on a house. (All the houses that were listed at 175, 185K in June are now down to 140-150K).

You need to find the paper trail on your approximate payoff amount when the car was repo'd. Hopefully you have this information. If not, then find an amortization table and input your data into the calculator and see exactly what was owed on the car when it was repo'd. From there, subtract the payoff amount. There will be certain fees attached due to the expense of the repo.

With the SOL ready to expire on this debt, you DO NOT WANT TO CONTACT them.

After the statute of limitations has passed, you will want to acquire an exact accounting of the debt from the debt owners eyes and documentation of the debt. After you receive this, you will be able to write a letter of explanation on the bad debt and reasons why you did not pay it off. Chances are that they never deducted the resale amount from the debt and you are accruing interest, which you do not owe.

If this is the case, then you will be able to qualify for FHA.

In the meantime, hold off on your purchase, and concentrate on getting your budget in order, and save.

There may still have some down paymnet assistance programs available, such as Nehemiah, and since you are in a buyers market, should not be hard to get. See the sticky at the top for more information.

[Magdalen77]

You need to find the paper trail on your approximate payoff amount when the car was repo'd. Hopefully you have this information. If not, then find an amortization table and input your data into the calculator and see exactly what was owed on the car when it was repo'd. From there, subtract the payoff amount. There will be certain fees attached due to the expense of the repo.

With the SOL ready to expire on this debt, you DO NOT WANT TO CONTACT them.

After the statute of limitations has passed, you will want to acquire an exact accounting of the debt from the debt owners eyes and documentation of the debt. After you receive this, you will be able to write a letter of explanation on the bad debt and reasons why you did not pay it off. Chances are that they never deducted the resale amount from the debt and you are accruing interest, which you do not owe.

If this is the case, then you will be able to qualify for FHA.

In the meantime, hold off on your purchase, and concentrate on getting your budget in order, and save.

There may still have some down paymnet assistance programs available, such as Nehemiah, and since you are in a buyers market, should not be hard to get. See the sticky at the top for more information.

Thanks for the response. The original price of the car was around 14K. I paid 48 months worth of payments of $400-some (just slightly over). That gives me $19,200 in payments. They sold the car after repo for $5,800 or thereabouts (I could get exact numbers). The problem was that I had a balloon payment at the end of the note for $9000. I was stupid and agreed to it to get a lower payment, not realizing. They wouldn't finance the balloon payment at the end (I was willing, but they wouldn't). So, I gave them the car. They never came after me for any difference, but they've been torpedoing my CRs for the past 3 1/2+ years. When my credit was crap and I didn't care it didn't matter. Now it's different. The DOFD on this account is May 2004 and the SOL for written contracts in PA is 4 years.

So, I should wait until sometime a couple of months after May just in case and save up money? I did just start doing that and by May my new accounts will have some age on them. My credit has just, in the last month, recovered to the point where I can get new cards. I know the deal, use them sparingly, never be late, keep less than 25% utilization (right now my ut is 7%).

Okay, I can do this.

[jq26]

What kind of interest rate were you at? From your post, you say the price of the car was $14000. So you made at least $19200 in payments PLUS you still were supposed to pay a $9000 balloon payment? That's $28,200.

Had you made that balloon payment, you would have paid for that car twice. Your #s must not be right.

[Magdalen77]

What kind of interest rate were you at? From your post, you say the price of the car was $14000. So you made at least $19200 in payments PLUS you still were supposed to pay a $9000 balloon payment? That's $28,200.

Had you made that balloon payment, you would have paid for that car twice. Your #s must not be right.

Yep. I was at like a 14% interest rate. My numbers are correct. I paid every month slightly over $400/month for 48 months. I realized after I bought the car, and my dad looked at the terms, that I was screwed. It was a very, very bad decision. I was in a relationship at the time and my BF persuaded me to get the car and he would help me out with the payment (he was primarily using the car because I had a company car). He never did. I struggled to afford that payment. I wasn't the best customer but I did make all my payments. But because I wasn't good at timely payments I never could re-fi (I listened to the salesman who said "Of course you'll be able to re-fi").

It was a good learning experience. I will never again buy something that I know in my heart I cannot afford no matter what anyone tells me.

I do have the contract somewhere around here. I'll have to look to find the exact interest rate, but your total amount looks right. What can I say?? At the time it seemed like a good idea.

[CloudX]

how are the gift progrmas doing right now? are they something to consider for first time buyers? I dont really understand those to much, but assuming I have the jist of it, those might help the OP...

[firstsource]

There are basically 2 types of Gift Programs. One type is government, either local or state, where they will grant you some money to live in a certain area.

The other type is actually called Down Payment Assistance, and that comes as a help for your downpayment from the seller. The FHA tried to outlaw those programs and yet there are several around still.

Charles