What are my chances of buying a house in October?

[DrVos]

Originally posted by: Joemonkey

Originally posted by: DrVos
Anyways, getting back to the possibility of buying a house....

Looking back at your original post, I'd say your best course of action is to get your most recent credit score (annualcreditreport.com) first. FHA loan requirements aren't as stringent as a traditional 30yr fixed and having a combined score of 650+ might be enough.

Continue making your min. monthly payments on the student loan, pay off the credit cards, and pay off your personal loan ASAP. Then start saving for your downpayment. Assuming $150,000 loan with 3.5% down that's like 4500 + closing costs.

I think its do-able to buy a home this year, but 0% is a thing of the past. Feel free to talk to a mortgage broker to get an idea of what kind of loan you qualify for. You'd want a pre-approval letter before you start shopping anyway.

thank you for some actual advice instead of "wtf are you doing taking out an unsecured loan!!" bullshit

which would a creditor admire more, the fact that i am debt free or the fact that I have $ down? if $ down wins, then I may not pay down my student loan as fast as possible

If you work to pay down your other debts, having that (relatively minor) school loan isn't really going to matter. As far as my home home buying experience goes, it seems that the lender is only really interested in 3 things:

Credit Score
Debt to Income ratio (Ratio of your gross monthly income to all monthly costs: Housing, car payments, cc payments, personal loans, student loans, etc). Lenders seem to look for a certain maximum ratio. Anything lower will give you extra consideration, but you'll get diminishing returns)
Ability to pay for downpayment + closing costs. (Estimate an additional 3% of the purchase price for the closing costs)

If you meet the minimum credit score requirement and have a decent DTI, the most important is thing having cash saved for your DP+CC.

I'm not at all involved in the lending industry, so take my advice with a grain of salt. I'm just speaking from my recent home buying experience. Seriously, get a good reference for a mortgage broker and give them a call. There is absolutely no obligation to work with them if things don't work out.

 

[DrVos]

Oops, DP

 

[FallenHero]

I have a much better credit score then you and was just told there is next to no chance of getting a 0 down loan for a home. 10% is nice, 20% is preferred. its the old way of doing things, the way it was supposed to be and the way that kept home prices in check. Gone are the days which brought us to the current situation.

 

[DrPizza]

"If you can't pay cash for the house, you can't afford it. That's what got us into this mess."
/idiots


Actually, an issue that you may have is having a mortgage on the 2nd house - i.e. you will show as having 2 mortgage payments to make, which is a larger percentage of your income. The $500 payment your relative makes is going to be counted as income, but not seen as necessarily that stable as a regular job. You'll probably have to show them a signed lease, etc. (We went through a similar situation, but banks were much more willing to loan money out a few years ago.)

 

[OCGuy]

Originally posted by: FallenHero
I have a much better credit score then you and was just told there is next to no chance of getting a 0 down loan for a home. 10% is nice, 20% is preferred. its the old way of doing things, the way it was supposed to be and the way that kept home prices in check. Gone are the days which brought us to the current situation.

You can easily get a 3.5% down loan for a home.


That being said, if you cant save a measly 3.5%, you shouldnt be buying a house.

 

[dullard]

Originally posted by: BlahBlahYouToo
how does one person take out a loan on a non-necessity like a vacation.
does not compute to me.

It computes for me. All you have to do is realize the OP thinks a 15.8% loan is "a pretty good deal". A $1800 loan paid off in 6 months for a total of $1884 is a 15.8% loan. Anyone thinking that 15.8% is a good deal clearly is likely to be willing to take out a loan for a non-necessity. Heck, he possibly could have done better with a credit card depending on his credit card terms. Although, I bet those aren't very good, so maybe 15.8% was good compared to what he could get otherwise.

I don't mean to sound harsh, Joemonkey, but your choices make bankers cringe. Having money on a credit card is generally a bad idea. Having a loan for a non-necessity is generally a bad idea. Having a renter on your home ($500/month) that doesn't even cover mortgage ($580/month) let alone maintanence, repairs, or profits is generally a bad idea. Getting yourself into such a bind that you need a bankruptcy is generally a bad idea. Going on vacation when you want to save up for a house is generally a bad idea. Wanting a house with 0% down is generally a bad idea.

Sure, there are exceptions to all of those generalizations. But it all adds up to a pattern that few banks will like. Unless you can make a lot of changes, I doubt you'll be able to get a house in October.

 

[bobsmith1492]

If you have no debt, why the bankruptcy?

 

[XBoxLPU]

My wife and I are closing on a new home the 23rd of this month. We paid zero down, and only paid settlement costs including prepaid and escrowed funds and title insurance premium. Locked in at 5.625 % interest rate with a step up FHA loan. Both of our credit scores is above 750 though

The floor plans are not the greatest in the world but not bad either. We got a 1502 SQ Ft home for $101,500.. should come out to just above $700 a month payment.

http://www.hunterhomebuilders.com/

 

[kranky]

Originally posted by: Joemonkey
we do have a credit card, and no, we DON'T pay it off every month on purpose.

I'm only going to comment on this. There's no benefit to paying interest on your credit card. It does nothing to help your credit.

Good luck with your house purchase.

 

[DingDingDao]

Originally posted by: XBoxLPU
My wife and I are closing on a new home the 23rd of this month. We paid zero down, and only paid settlement costs including prepaid and escrowed funds and title insurance premium. Locked in at 5.625 % interest rate with a step up FHA loan. Both of our credit scores is above 750 though

The floor plans are not the greatest in the world but not bad either. We got a 1502 SQ Ft home for $101,500.. should come out to just above $700 a month payment.

http://www.hunterhomebuilders.com/

$68/sqft. OMG. Want to move to Alabama now.

I'll be lucky to find a house for less than $275/sqft here.

 

[DannyLove]

Originally posted by: Chryso

Originally posted by: Joemonkey
My wife and I moved here to Louisville last September and are renting an apartment where the lease expires at the end of October. Currently paying $759/mo in rent

When I moved, my mom moved into our old house and is paying me ~$500 a month in "rent" while the mortgage is $580/mo. We still owe ~$65,000 on that house.

We don't have much debt, ~$2000 in student loans and ~$1000 on a credit card, both of which should be paid off before October. I also have a personal loan for $1800 from my work's credit union that I took out to help pay for a vacation. It is also going to be paid off before October as it is an auto deduct from my pay check. Borrowing $1800 and paying back $1884 over 6 months was a pretty good deal I thought

anyway, we declared bankruptcy in December of 2005 and when I applied for my loan at the credit union they told me my credit score was 609. By the time rolls around for us to buy a house I expect the ONLY debt I will have is my old house. Is there any chance of getting a zero down loan these days any more? especially in my boat?

Ideally we would LOVE to sell our old house and use the profit as a down payment on our new one, but I really can't just kick my mom out. There are also 2 other houses on the street that have been on the market for quite some time, so there is no telling how quickly we could even sell our old house anyway

<wince>

<double wince>

 

[Joemonkey]

Looks like we're buying a house with 3.5% down via a gift from my inlaws. Have a great realtor and set of helpful friends (property paralegal, landlord that owns 15+ houses, other realtor). Just wanted to let you guys know we made it work out

and for those that say "100% financing doesn't exist any more" you're wrong. PNC bank is offering 100% mortgage financing but you have to make <$49k a year to get it (and i have no idea what other caveats are required)

 

[Joemonkey]

Originally posted by: bobsmith1492
If you have no debt, why the bankruptcy?

rofl, are you serious? how do you think we got rid of the debt we had ~3 years ago?

 

[Killerme33]

You declared bankruptcy less than 4 years ago. You are not getting a loan. Lenders do not like giving money to people that filed bankruptcy. You even say in the most right above mine that you used the bankruptcy to clear all your prior debt.

 

[Joemonkey]

Originally posted by: Killerme33
You declared bankruptcy less than 4 years ago. You are not getting a loan. Lenders do not like giving money to people that filed bankruptcy. You even say in the most right above mine that you used the bankruptcy to clear all your prior debt.

yes we are...

and what the hell else is bankruptcy used for!?

Circumstances change, when we declared bankruptcy I was making $28k a year. I make over 2x that now and my credit history since declaring bankruptcy is spotless.

 

[Joemonkey]

If you can skim past the "holier than thou" posts in this thread to get to this one...

woohoo! made an offer and the seller accepted today! We'll be moving in within 45-60 days after the loan arrangements are all fleshed out. Screw you bitches that said there was no way we could get a loan

and kranky, to your post about "There's no benefit to paying interest on your credit card. It does nothing to help your credit."

I have to say you are dead wrong here. What creditor would want someone on their account that never made them money? If I were a credit card company and everyone I gave credit cards to paid off the balance every month I would HATE those people. The only way I would make money is if I earned interest on their debt. Creditors that like you because you make them money = higher credit score

 

[UberNeuman]

Congrats to you and your wife - enjoy the new home..:beer:

 

[wiredspider]

Your credit report doesn't even show if you paid the full balance or not, just if you were on time with payment or not. No wonder we have the problems that we have now...

And the sellers accepting doesn't mean anything until you are approved for loan and have a check in hand at closing...

 

[SuperSix]

Foreclosure in 3...2...1..

 

[Kelvrick]

Originally posted by: Joemonkey
If you can skim past the "holier than thou" posts in this thread to get to this one...

woohoo! made an offer and the seller accepted today! We'll be moving in within 45-60 days after the loan arrangements are all fleshed out. Screw you bitches that said there was no way we could get a loan

and kranky, to your post about "There's no benefit to paying interest on your credit card. It does nothing to help your credit."

I have to say you are dead wrong here. What creditor would want someone on their account that never made them money? If I were a credit card company and everyone I gave credit cards to paid off the balance every month I would HATE those people. The only way I would make money is if I earned interest on their debt. Creditors that like you because you make them money = higher credit score

Umm, no, they also take a nice percentage of the transaction. I guess those paying interest on debt provide more of a "return," but I'd personally rather have people who pay back at the end of the month. I get that money back a lot quicker and can use it elsewhere in other ventures. But maybe I just think more conservatively.

Have you actually gotten the loan back (commitment letter) and just waiting on closing conditions and closing of escrow or just a pre-approval?

 

[Joemonkey]

Originally posted by: Kelvrick

Have you actually gotten the loan back (commitment letter) and just waiting on closing conditions and closing of escrow or just a pre-approval?

we've actually moved in!