We need help!

shelbiewitte · Joined: 10 Feb 2008 Posts: 2 1.74 Dollars($)

We need help! Where should we start in order to get a mortgage with a low (5-10%) down payment with credit scores of 610-630 in Georgia? A regular bank turned us down!!

ckalvesmaki · Posted: Sun Feb 10, 2008 2:38 pm Post subject:

What was the reason for the denial.....??? What kind of purchase price are you looking at? Can you proove your income? You may want to check with a broker......

shelbiewitte · Joined: 10 Feb 2008 Posts: 2 1.74 Dollars($)

I'm the co-borrower and I have some write-offs and collections (most are over six years old) from when my husband died. They were on there when we qualified for the mortgage we have now, so I'm not sure why it is any different this time. Also, the bank said we would have to have 20% down and wouldn't consider doing a VA loan or a low money down loan.

The price of the house is 294,500. Our monthly income is now almost 11,600 and once I start my new job, it will be closer to 14,000 a month.

Can you help us??

Caron · Posted: Mon Feb 11, 2008 2:12 am Post subject: RE: low down loan

Hi,

Different bank have different criteria for offering loans. Moreover, you'll find different conditions to qualify with a bank and credit union or a mortgage company. It varies from one lender to another. Some may ask you for low down while some require you to pay as much as 20%, though the latter percentage is the optimum.

Perhaps considering your financial situation, the bank has suggested that you go for VA loan or a low down loan. But you have every chance to talk to some more lenders and then compare the loan programs offered, look through the pros and cons and then decide upon the right one. By the way, are you comfortable putting down near about 15-20%? That's what matters.

They were on there when we qualified for the mortgage we have now, so I'm not sure why it is any different this time.

Why do you say it's different? What exactly do you mean by this? May be you are saying that your credit report no longer reflects the write-offs and collections. Well, that good indeed. Perhaps you have been paying the mortgage on a timely basis and that's the reason your credit condition has improved thereby balancing the effects of the write-off and collections. But how long have you been on your first mortgage and when did you go through the writeoff and collections?

I hope you've paid off the collections by now. If so, then you can go for FHA loans as these are not score driven, but that doesn't mean you'll get an FHA loan at 450 score. Not really! You should have score around 500-550 for an FHA loan and this is just a moderate figure. This will varies from one lender to another.

You may even consult with some of our community lenders for further suggestions on the loan options. Also, if you are interested, feel free to send us your request for mortgage quotes , so that we can pass it on to selected lenders only. The lenders will try to match their profiles with that of your loan requirements and if they can do so, they'll call you asap.

Good luck Smile

gmakerley · Posted: Mon Feb 11, 2008 8:24 am Post subject:

you ought to be able to qualify - with many lenders - for a government-backed loan, such as fha or va. i assume you brought up the va possibility because you are able to qualify for that.

right now, these types of loans are far better bets for those with any challenges on their credit reports; however, keep in mind that many lenders are going to require that charge-offs and collections be paid in full in order for them to grant you a loan.

you ought to shop around a bit more - simply pick up the phone and place a few calls, describing your situation in general terms and asking if you might qualify for one of these loan products.

the bank you spoke with may simply be one that is conservative and does not offer the government-type loans described above.

jeffselan · Posted: Mon Feb 11, 2008 4:41 pm Post subject: I agree with GM

I agree with GM. Not all banks, lenders, and brokers have the same programs. What one bank considers a great loan may not be even considered at a local bank or another lender.

Call around and get a feel for the lenders and what they might offer you.

I can tell you though, be cautious of the lender that promises you everything on a platter. Sometimes they can hurt you more than the lender that just says no.

gmakerley · Posted: Tue Feb 12, 2008 7:25 am Post subject:

that's true jeff...a "no" should never hurt in any event.

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