Compare Mortgage Quotes

eclay · Joined: 10 Nov 2009 Posts: 2 1.74 Dollars($)

My credit scores are all right around 630. I have no late payments except for a KD as recent as 6 months ago on my credit report. I payed it off, but that is the only thing keeping my score down, otherwise I'm current and in good standing for the last 2 years. I do have school loans that are deferred until I get out of college in about 1.5 years. I am planning on paying off about 5K of that in the next month or so, and I will have about 10k to put down on a house, if needed. I am looking as a first time home buyer for a house under 100k. In the next 2 weeks, I am going to pay off a 401K loan I took out a few years back so I will have access to a down payment through another loan on my 401K.
Does this sound like I could get a loan?

gmakerley · Posted: Tue Nov 10, 2009 12:23 pm Post subject:

from what you've noted, eclay, it would appear that you've got sufficient qualifications. the only thing you didn't mention was income and debt load, but i suppose we have to assume those are under control.

and what is a KD?

your best bet, with a 630 score, is an fha loan. that allows as little as 3.5% down payment (i know you have more), and rates aren't especially worse than conventional loans, particularly when you consider the penalties that accrue for credit score on conventionals.

eclay · Joined: 10 Nov 2009 Posts: 2 1.74 Dollars($)

I gross about 45k a year, a little overtime mixed in and have been at the job for 8 years. I have minimal debt load. I own my car(s), I have no debt really, maybe 100 a month in credit debt. My real debt load is in my school loans, which won't kick in for a year and a half, but that I am trying to pay down before that time comes to ease the pain. I was thinking an FHA loan, but since I have never done this before, I am a little intimidated by it all.
A KD has shown up on my credit report as a delinquent account that I payed off. It means Key Derogatory, at least that's what I have found on the net. It shows closed and current now, but there is a stretch where KD shows up before I payed it off.
Thanks for your time.

jveenstra · Posted: Tue Nov 10, 2009 2:13 pm Post subject: Purchase

As George noted above, FHA works and is the suggested way to go for a number of reasons--low down payment required, credit score below 740, etc.

Additionally, when student loans are deferred the Conventional loans still require that a payment be included in the debt ratio claculation. With FHA loans, as long as defrred at least 12 months past the closing date, they are not included in the debt ratio.

gmakerley · Posted: Wed Nov 11, 2009 5:42 am Post subject:

thanks john for reminding me of the conventional requirement on student loans. it's been so long since i did a conventional...help me, Lord!

this is all the more reason to go with fha...eclay, you need not be intimidated by the process. you've borrowed money before, and this is the same thing except on a larger scale. as long as you've got your proverbial ducks in order, and it seems that you do, you ought to be able to navigate through this process reasonably well enough.

don't be discouraged, either - this mortgage business can fray anyone's nerves, but it's all a process and the end result is to your benefit.

raymond · Posted: Wed Nov 11, 2009 2:27 pm Post subject:

I'd like to suggest for you to explore the USDA loan program also, since it doesn't have a down payment requirement, or mortgage insurance, and is flexible in more areas then FHA.

gmakerley · Posted: Wed Nov 11, 2009 2:56 pm Post subject:

raymond, i just need to find me some rural borrowers so i can take advantage of the usda program. i guess that's why i overlook it when i post my commentaries.

raymond · Posted: Wed Nov 11, 2009 4:57 pm Post subject:

"rural" is a matter of definition. Use the map provided by USDA and you'll see more areas are eligible then most would think. What's interesting is the USDA is using the program to promote non-rural areas too. There are six areas in California that aren't rural, but have high foreclosure rates, and the USDA has made exceptions in those locations.

riseabove · Joined: 09 Nov 2009 Posts: 277 11.01 Dollars($)

eclay, as a first step you might want to do a little checking around online and vistit a few of the mortgage quoting sites that are around. If nothing else these will give you access to quick, free indicative quotes that you can use to inform your options before talking to someone direct. Once you have a few options in mind, speak to a broker or other professional and go over it with them.

I always prefer to do a little homework myslef first to make sure I'm not getting taken for a ride and blindly following someone elses advice, but that could just by my cynical side talking!

The point is, if you have options, use them.

Company	Loan Type	APR	Est. Pmt.
				Go
				Go
				Go
				Go
				Go
				Go

Property State:
Property Type:
Credit Rating:

All times are GMT - 7 Hours

Page 1 of 1

Compare Mortgage Quotes

I am looking to buy a home, but not sure if I would qualify.