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Old 06-04-2018, 08:20 PM
 
10,272 posts, read 6,506,221 times
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Quote:
Originally Posted by BoBromhal View Post
thanks. I misread your post as if they generally provided housing to a LOT of fixed income senior citizens. Of course they offer it to those who need financial assistance since they're in poverty.
It's limited, they don't provided to everyone who needs it, I understand there are several years waiting list and the only way to get in is when someone dies.
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Old 06-04-2018, 08:22 PM
 
10,272 posts, read 6,506,221 times
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Quote:
Originally Posted by jm1982 View Post
Yeah more greed with the bigger banks . Pressure from Wall Street to make certain numbers and also the selling off of loans and offering all these mortgaged backed securities and shady things .

Seems some of the smaller banks keep their loans in house so they would actually care about the quality and not do the liar loans like the big banks .
Some smaller banks are now doing loans to qualified people and selling them to big banks.
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Old 06-05-2018, 08:03 AM
 
126 posts, read 41,350 times
Reputation: 302
Quote:
Originally Posted by LifeIsGood01 View Post
Some smaller banks are now doing loans to qualified people and selling them to big banks.
So all the banks are greedy again and pushing through crap loans. You say “qualified “ people, but the truth is, you just HOPE they were qualified.
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Old 06-05-2018, 08:27 AM
 
340 posts, read 163,614 times
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Quote:
Originally Posted by Greeniejeans View Post
So all the banks are greedy again and pushing through crap loans. You say “qualified “ people, but the truth is, you just HOPE they were qualified.
Banks are getting loosey-goosey again with their lending standards. Here’s some anecdotal evidence posted on the NJ forum today: 5% down conventional with 640 credit and 5.75%! IS IT BAD OR GOOD MORTGAGE RATE?

5% down and an iffy credit score ?!
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Old 06-05-2018, 09:17 AM
 
98 posts, read 40,376 times
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General question to those who know more than me: Are low-DP with superlative (>800) credit loans considered risky? Or is it the low-DP combined with iffy credit that makes the mortgage risky?
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Old 06-05-2018, 09:41 AM
 
Location: Raleigh NC
7,773 posts, read 6,123,712 times
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Quote:
Originally Posted by Cubicle Dweller View Post
Banks are getting loosey-goosey again with their lending standards. Here’s some anecdotal evidence posted on the NJ forum today: 5% down conventional with 640 credit and 5.75%! IS IT BAD OR GOOD MORTGAGE RATE?

5% down and an iffy credit score ?!
well, there's not nearly enough info provided to make such a definitive statement.

Why is their credit score 640?
Do they have some other debts (like credit cards) that they'd have to pay off first?
What's the price of the house?
How would their total housing expense compare to their current rental cost?
What's their DTI?
What are their reserves after the 5% down and closing costs they pay?

A great rate today is 4.625%. Does the extra 1-1/8% cover the insurance for potential default.
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Old 06-05-2018, 09:58 AM
 
10,272 posts, read 6,506,221 times
Reputation: 10852
Quote:
Originally Posted by Cubicle Dweller View Post
Banks are getting loosey-goosey again with their lending standards. Here’s some anecdotal evidence posted on the NJ forum today: 5% down conventional with 640 credit and 5.75%! IS IT BAD OR GOOD MORTGAGE RATE?

5% down and an iffy credit score ?!
640 is average, perhaps the less than stellar score was a result of medical debt that they were told the only way they could get help for it was to let it go into default and then have charity care cover it.

Homes and taxes are high in many parts of NJ. If you are buying a $500K home it's very hard to come up with $!00K down. Banks are competing with other lenders and the borrowers are probably paying private mortgage insurance premiums until they are down to 80%.

Plus all that said it does not mean at all that they didn't qualify as far as income or dti ratio or other things an underwriter would need to check before approving the loan.
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Old 06-05-2018, 03:19 PM
Status: "Even better than okay" (set 10 days ago)
 
Location: Coastal New Jersey
51,289 posts, read 50,539,435 times
Reputation: 60194
Quote:
Originally Posted by BoBromhal View Post
well, there's not nearly enough info provided to make such a definitive statement.

Why is their credit score 640?
Do they have some other debts (like credit cards) that they'd have to pay off first?
What's the price of the house?
How would their total housing expense compare to their current rental cost?
What's their DTI?
What are their reserves after the 5% down and closing costs they pay?

A great rate today is 4.625%. Does the extra 1-1/8% cover the insurance for potential default.
That's correct. I am from NJ and I snickered at the horror in some of the answers.

I bought my condo in 2010 with 3.5% down, and I had a similar score. I also borrowed that 3.5% from my retirement system. My interest rate is 5.25%. I took advantage of the $8K tax credit.

My PITI is a few bucks more than the $1400 I was paying for rent for a 2BR apartment. Would I be able to rent that 2BR NOW for $1400? No.

I had debt because I had been married to an irresponsible person, and I'd had a child to raise without child support. For a number of years, expenses exceeded income.

But, I'd gotten several promotions and my salary was $115K. The condo was $180k. Paying a mortgage was no more difficult than paying rent, and I can deduct the interest and property tax.

Fast forward to now--I have paid off all my debt except the mortgage, including parent college loans for my dd, and I'm now paying $500/month extra toward the principal plus saving money...and I retired and only work part-time. That was my plan. My credit rating now is 801, same as my birthday. . When I pay enough down and save enough, I plan to refinance.

Everyone's situation is different. We didn't all have Leave-it-to-Beaver lives. You do what you have to do.

Last edited by Mightyqueen801; 06-05-2018 at 03:30 PM..
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Old 06-06-2018, 07:50 AM
 
4,543 posts, read 11,549,619 times
Reputation: 3063
Quote:
Originally Posted by Greeniejeans View Post
So all the banks are greedy again and pushing through crap loans. You say “qualified “ people, but the truth is, you just HOPE they were qualified.
greenjeans has NO idea what they are talking about. #doom&gloom
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Old 06-06-2018, 09:16 AM
 
595 posts, read 377,192 times
Reputation: 1021
There are facts you can research that show "non-prime" mortgages have replaced "sub-prime" mortgages. Are they identical? No, close enough, IMO.

https://www.cnbc.com/2018/04/12/sub-...and-soars.html

https://www.thetruthaboutmortgage.co...ime-mortgages/

Home Loans for Credit Scores Down to 500
FICO scores as low as 500
Loan amounts as high as $1.5 million
Cash out as high as $500,000
Recent credit events are OK
Bank statements acceptable to verify income


https://www.carringtonms.com/

There may be others, look it up for yourself. Add to that research that markets are over-valued, beyond the real estate market itself, then form your own conclusions. Or just "#" as your vocabulary may be limited and you are more "hip" then others.
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