U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
 
Old 12-24-2007, 07:00 PM
 
Location: Tampa baby!!
3,258 posts, read 8,325,609 times
Reputation: 1841

Advertisements

We are looking for advise on reputable companies that offer mortgages for people with less than perfect credit. Are there any out there that don't charge absolutely OUTRAGEOUS rates and are willing to help first time buyers with little or no money down? We are hoping to buy in the Central Florida area in a year or so. We do intend to improve our credit, but we are SOOO ready to be done with renting.

If anyone has had experience or knows someone that has, the info would be greatly appreciated.
Rate this post positively Quick reply to this message

 
Old 12-26-2007, 11:55 AM
 
4,987 posts, read 12,690,732 times
Reputation: 3796
You will have to go at least 12 consecutive months with no lates, collections, blemishes, etc. and then you can get a FHA loan which only requires 2.25% down and currently has interest rates in the low to mid 6's.

Otherwise you will be stuck with subprime with a horrible rate, at least a 5%-10% down payment and probably some heavy fees.
Rate this post positively Quick reply to this message
 
Old 12-27-2007, 12:02 AM
 
Location: Cary, NC
1,036 posts, read 3,767,625 times
Reputation: 510
FHA is usually the best way to go, and its 2.25% down PLUS .75% towards down payment OR closing costs, for a total investment of 3%. The FHA modernization bill just passed the Senate a week ago.... so this will be lowered to between 0 - 1.5% in the next few months (needs to be reconciled between House and Senate).

There are also affordable mortgage programs like My Community, Home Possible, etc with 0 - 5% down depending on credit. The key thing is to show 12 months on time rental history with a verifiable rental company or cancelled checks and timely payments on other debts. Build up at least 2-3 months housing payments in a reserve account in addition to the down payment/closing costs. Lenders will want to see that you have an emergency fund in case there are future issues.

The other important item will be consistent work and income history. It is important to show stability in income and that your debts will be manageable in relation to income so that you can handle the house payment.

I have been in the mortgage industry for >5 years. I started and have been working with FHA and other options since the start, but many places went to the easier (but higher rate/fee) sub-prime programs. If you intend to buy in the next year, start working with a lender now to get on a plan. Don't assume what you will need to qualify, get the facts and start trying to get everything lined up so you are ready.
Rate this post positively Quick reply to this message
 
Old 12-27-2007, 07:26 PM
 
Location: Orlando FL
1,065 posts, read 3,859,779 times
Reputation: 425
There are also Florida Housing programs out there that use county bond money to fund lower rate mortgages for first time homebuyers. People also usually combine these mortgages with county down payment assistance programs as well. Be prepared to wait a very long time to close with these type of programs though.

Last client that had this kind of deal involved took 5 months to get everything together, close, and fund. FHA is most likely your best bet, in the time before you get the mortgage though, make sure you don't miss any payments, payoff any collection accounts you may have, and pay down balances on credit cards.
Rate this post positively Quick reply to this message
 
Old 12-28-2007, 02:52 PM
 
Location: Ashburn, Va
7 posts, read 31,244 times
Reputation: 10
What do you consider "less than perfect" credit? Have you run your credit and verified that everything on your report is valid? If so, have you worked with a mortgage financial planner help you put together a plan of action to get you into a home within 6-12 months? That should be your first step.

On another note, FHA coupled with a downpayment assistance program is a great way to go. I have been a mortgage financial planner for over 7 years and I'm seeing this program used more now that ever before. Sellers are more willing to participate and it only takes a few days to line up the downpayment money.
Rate this post positively Quick reply to this message
 
Old 12-28-2007, 04:59 PM
 
Location: Tampa baby!!
3,258 posts, read 8,325,609 times
Reputation: 1841
Quote:
Originally Posted by HDavis View Post
What do you consider "less than perfect" credit? Have you run your credit and verified that everything on your report is valid? If so, have you worked with a mortgage financial planner help you put together a plan of action to get you into a home within 6-12 months? That should be your first step.
We really haven't made it so far as to meet with anyone. We are living in Georgia and planning to move back to FL around summertime. I know we will have to rent for atleast 7 months anyway, and in the meantime are working on paying off some things we know about.

We had a repoed car about two years ago that's now paid off through Suntrust. My credit cards have been paid except one that I am working on, that is a store card and I owe less than $400 now. I think my husband still owes Chase but will making an arrangement with them shortly. Other than that, there's some medical bills that are less than 18 months old from when I had our son, and some of that I think should have been paid by the insurance but wasn't for one reason or another.
Rate this post positively Quick reply to this message
 
Old 02-20-2008, 08:57 PM
jmi
 
3 posts, read 7,682 times
Reputation: 11
The SHIP program is a first time home buyer progam for those who are lower income and in need of assistance. The program offers home ownership education and depending where you are in the state you could receive up to $25,000.00 in down payment assistance through the program. The down payment assistance does not have to be repaid if you remain in the home for 3 or more years. I am unsure of all counties in FL but in Citrus, you must be a resident of the county for atleast 12 months to qualify for the program and assistance. Hard to believe but I spoke to a woman in Citrus County who is building homes in Citrus Springs for graduates of the SHIP program who are single moms. They are actually building a very nice 3/2 CBS home with a 1/4 acre yard and all appliances and selling it for $110,000.00. She told me that if I had the $25,000.00 down payment assistance from SHIP and a low interest loan the house payments would be less than what I currently pay in rent.
Rate this post positively Quick reply to this message
 
Old 01-18-2014, 09:58 PM
 
1 posts, read 1,441 times
Reputation: 10
We are looking to purchase a home, we have a few late payments here and there but have consulted with a financial planner/credit repair representative who told us that we really didn't have credit to repair - we have a couple of credit cards that we are working on paying down the balance to below 30% and should have this accomplished within the next 30-45 days but our main issue he told us was that we just don't have enough credit to generate high credit scores. My highest credit score is 587 - we have $10,000 for a down payment and need help finding a mortgage company that will work with us and not put as much approval weight on what our credit score is. We both have a long-term work history, perfect rent history of paying $1600 a month in rent and have great income. Does anyone know of a company that we can work through to get approval for a mortgage?

Last edited by FutureHomeOwnerDreamer; 01-18-2014 at 11:01 PM.. Reason: spelling
Rate this post positively Quick reply to this message
 
Old 01-18-2014, 10:22 PM
 
Location: Southern California
4,453 posts, read 5,864,262 times
Reputation: 2221
Quote:
Originally Posted by FutureHomeOwnerDreamer View Post
he told us was that we just don't have enough credit to generate high credit scores. My highest credit score is 587 -]
You score is probably low due to late payments here and there, collections if any, credit charge offs, high credit utilization or possibly a bunch of other things . I don't know how much credit you have, but you have enough to generate late payments. I've seen credit scores over 700 with credit cards of only $2000. Keep paying your bills on time and your score will improve to the point you don't need to hunt for a special lender.
Rate this post positively Quick reply to this message
 
Old 01-21-2014, 04:38 PM
 
Location: Silver Spring, MD
1,457 posts, read 1,258,153 times
Reputation: 1641
You should look into working with NACA, their process is slow but they will make sure that you don't get into something you can't afford.
Rate this post positively Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


 
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:
Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Similar Threads

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top