Home Loans with excellent credit. (Full Version)

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Leslie_JnJs_mom -> Home Loans with excellent credit. (6/2/2008 11:24:14 AM)

I have a mobile home that we have been trying to sell so we can buy a regular house. The market up here is not great but things are sorta selling. Well we found a house that we want. It is a foreclosure so it is dirt cheap and needs only some new carpet and paint. The problem I have is no one is really wanting to buy a mobile home right now especially with all the tornadoes lately. I went to my hometown bank and they said sure but I need 20% down. I made sure to tell them we would rent our mobile out so the mortgage will be paid plus we would get a little bit of extra income every month off of it. He still wants 20% down. How come I always see these people on the flip shows get these homes with no down payment plus money to work on it? I have excellent credit. Do I just need to try a different bank?



Miss Giggles -> RE: Home Loans with excellent credit. (6/2/2008 11:26:13 AM)

Its not you. Its the credit market, the banks lost and are losing money with all the sub primes so they had to tighten up their lending practices. Car Loan rates are up too because reposessions are up too.

BTW those shows were probably filmed over a year ago and if you watch the updates you'll see that not many of them were able to sell the homes right away.



Leslie_JnJs_mom -> RE: Home Loans with excellent credit. (6/2/2008 12:29:20 PM)

Oh dear. Well I talked to my husband and we are going to go to the other bank we use since they offer 5% down and a no fee mortgage. The house is a steal so we can swipe the down payment on the card if we have to. So hopefully we can get out of our mobile and into a real house.



APZR -> RE: Home Loans with excellent credit. (6/2/2008 3:58:19 PM)

How much equity do you have in the Manf. Home? Could you do an equity loan or credit line to get the 5%? The hard part right now is just getting the foreclosure into your name, then you can refinance. So talk to a local bank about a short term, 1 year interest only note. Then you can do the repairs with cash, and refinance.



bzirk -> RE: Home Loans with excellent credit. (6/2/2008 5:12:14 PM)

Have you checked into the USDA's home loans. Even if you don't live in a rural area, you might be able to get a loan without a huge down.

But if this deal doesn't work out, take heart that there will be other deals. If there is nothing else I've learned it's this: if there's one deal, there is another. The key is patience, and I think you've proven that you have that. Sometimes we just have to have more than we think necessary.

Blessings.



Leslie_JnJs_mom -> RE: Home Loans with excellent credit. (6/2/2008 8:45:42 PM)

Before we sign on the dotted line tell me if this is OK. We got the loan first of all. We need a small down payment. We have it in equity in our current home if we need to take out cash on that. We also have a new credit card that is interest free for one year. I can put it on my card and pay for it with taxes or before. It is only 1,200 that I need down. It is a no fee mortgage so there will be no closing costs or insurance including PMI. We will have this other property that we will rent out until it sells. To tell you the truth we are scared but I am not sure if it is jitters from buying a new home or if God is sending us the don't do it message. I wanted this house terrible this morning and now I am scared to death. The mortgage is cheaper then the car payment we almost got into this weekend so if we could afford a new car why are we so scared of a house? We are going to get it all inspected to make sure everything is OK but still we are scared. They will call tomorrow to tell us if our offer was excepted or not. Part of me is scared it will be and another part is scared it wont be.



Miss Giggles -> RE: Home Loans with excellent credit. (6/3/2008 8:15:14 AM)

If you don't have even have 1200.00 saved up you should not be buying a home, thats not enough for any type of emergency to come up. Save several months of expenses and then buy.



Leslie_JnJs_mom -> RE: Home Loans with excellent credit. (6/3/2008 10:58:01 AM)

Thanks! I had a bad feeling about this since the lender said the days of 100% financing are over. I was fully prepared to have to confess to the real estate agent that we just do not have the cash up front to buy the house when he called. Well he called to tell me the the listing agent wants 500 up front before any offer will be issued so I told him sorry we cannot do that. If my house had sold then we would have everything we need plus a nice nest egg. So we are going to stay in our current home unless God decides to move us because that is the only way we can afford to move.



bzirk -> RE: Home Loans with excellent credit. (6/3/2008 11:42:07 AM)

I agree with Miss Giggles.

L & J's mom,

Your patience will more than likely pay off. Hang in there, and start socking some money in the bank. It's amazing the money you can find in your income if you ask the Lord to show you.

Blessings.



Row1 -> RE: Home Loans with excellent credit. (6/3/2008 4:57:26 PM)

good learning experience.

now: make a plan. save 2k.

keep an eye on listing and selling of foreclosures. how did you find out abt this one house? use that 'method' to discover more. they will keep popping up for the next few months at least.

figure out where you might live temporarily if you sold mobile home but were not yet in a foundation-home. for example: put all stuff in a storage space or two for two - three months would be total about $300, truck rental for a day to move out, and a later day to move in, would be almost $100/day; and stay with family friends or motel for maybe a month - really could vary.

educate yourselves on home loans; like get a fixed loan, not a variable rate, not a reverse, not a balloon, etc.

this could be a great plan. this is an optimal time to be buying if you are in good shape to buy, and plan to be in the area for at least a few years. it will be a long time before you see interest rates this low, and see so many houses at such low prices. foreclosures are usually lower than what a 'market' sale would be, plus, the availability of foreclosures makes prices go down for the regular (not-foreclosed) house listings.



relady -> RE: Home Loans with excellent credit. (6/4/2008 1:58:56 AM)

Leslie, I see that you are in Missouri. I wish you the best in trying to sell your moblie home. They are handled differently and banks don't like to make loans on them. They depreciate instead of appreciate like a normal home - they just aren't considered real property. Selling one is a different experience for sure.

Be very careful in purchasing a foreclosure if you intend to live in it. The banks generally will not do any inspections and you as a buyer have very little protection. It is truly the closest thing to a "caveat emptor" real estate transaction that you will ever have. Make sure you trust your Realtor and listen to him/her!



bzirk -> RE: Home Loans with excellent credit. (6/4/2008 9:52:33 AM)

That's why anyone who buys a foreclosure better have a good home inspector in the wings before they do it. Some of those inspections can cost a pretty penny, but they're more than likely worth it.

Slightly off topic and to whomever: I think it's a good idea to have your home inspected periodically anyway. We do that about every five years, and it's amazing the things I've learned from a professional inspector. When I was a fairly new homeowner, I had my home inspected about three years into it, because we were thinking of selling. The inspector told us some wonderful things that saved us a ton of money later on.



Leslie_JnJs_mom -> RE: Home Loans with excellent credit. (6/4/2008 10:26:21 AM)

Thanks! Have the banks changed their stand on lending for mobile homes? I bought mine in 03 and my bank told me that since we have land they will lend. Most of our improvements have been to the land rather then the mobile home. With a fence in our yard, a nice deck and landscaping. Oh and our town just recently upgraded to sewer too. Although we did replace the carpet with laminate wood floor and the cheap mobile home appliances with nice ones.
It is kind of frustrating to see so many good homes up for sale and we are held back because of a few thousand dollars.
My husband is really good at inspecting homes. The town we live in wants to get him certified as the official building inspector since he really knows codes well.
We will be patient and wait on Gods timing. Thanks
Leslie



bzirk -> RE: Home Loans with excellent credit. (6/4/2008 10:46:20 AM)

If you're on land and not in a park, then you're in a much better position.



bzirk -> RE: Home Loans with excellent credit. (6/4/2008 10:48:49 AM)

As to inspecting homes, that's a great side job or full time job. The guy down the street from me makes a pretty penny inspecting homes.

If the town certified your husband as a building inspector, he could make some good money on the side with that credential. That's how the guy down the street got started and eventually made it a full time job.



relady -> RE: Home Loans with excellent credit. (6/5/2008 10:56:37 AM)

quote:

I bought mine in 03 and my bank told me that since we have land they will lend.
If you own the land under it and are selling that as well, that may change things for the better. I have a Realtor friend who just helped some buyers purchase a mobile and it was a nightmare. So much so that she said she won't do any more mobiles, lol. She's out in Washington which is a more rural area, and I don't know all the details, but they had a very hard time getting financing. Perhaps it wasn't on land, I'm not sure. If your bank will lend on yours then you may not have as hard a time selling.

As to your hubby becoming an inspector.....ditto to what bzirk said.



Leslie_JnJs_mom -> RE: Home Loans with excellent credit. (6/5/2008 11:24:13 AM)

Yes our mobile home is on a piece of land that goes with it. We have done a lot of work to the land since when we bought the piece of property all it had a a concrete slab from an old foundation and a lot of grass. Now it looks like this ~ http://i142.photobucket.com/albums/r104/lesliemomof2/grandma%20and%20grandpa/110_7219.jpg



U376977 -> RE: Home Loans with excellent credit. (6/12/2008 5:24:30 PM)

Whenever you are ready to buy again--follow relady's advise and get with a realtor you trust. Let them refer you to a good mortgage professional and consult with them. Retail banks may not have the best financing for you.
Also, you wrote about "swiping" your card for the downpayment. Ah, bad. Don't do that. Save it. From any investor you will have to prove you have $$ in the bank. They usually want is "seasoned" meaning there 3-6 months. Some investors do not have "seasoning" as long as you can "source" it--meaning sale of a car, boat, or a gift. Swiping a card will only add to your debt ratio and may disqualify you from buying. DO not buy a car or incur any more debt until after you get into a home. I know of a soldier who was a perfect borrower. Great credit score, etc. Just before her financing went thru she bought a Hummer. Bad move. She could not afford the home.



daughter_of_faith -> RE: Home Loans with excellent credit. (6/14/2008 12:15:10 PM)

quote:

ORIGINAL: Leslie_JnJs_mom

Thanks! I had a bad feeling about this since the lender said the days of 100% financing are over. I was fully prepared to have to confess to the real estate agent that we just do not have the cash up front to buy the house when he called. Well he called to tell me the the listing agent wants 500 up front before any offer will be issued so I told him sorry we cannot do that. If my house had sold then we would have everything we need plus a nice nest egg. So we are going to stay in our current home unless God decides to move us because that is the only way we can afford to move.


Are they? I've been told by several that they aren't and that we should consider buying over renting. It's really hard to say though...



relady -> RE: Home Loans with excellent credit. (6/14/2008 2:34:28 PM)

quote:

Are they? I've been told by several that they aren't and that we should consider buying over renting. It's really hard to say though...
100% financing on conventional loans is pretty much gone unless your credit score is above 700. If you have perfect credit you might be able to find something. I'm seeing a huge increase in FHA loans now, with people using first time buyer programs that require the seller to participate and "gift" a percentage of the sale price back to be applied to the downpayment and closing costs.



isaacsmom -> RE: Home Loans with excellent credit. (6/14/2008 2:54:18 PM)

quote:

Be very careful in purchasing a foreclosure if you intend to live in it. The banks generally will not do any inspections and you as a buyer have very little protection. It is truly the closest thing to a "caveat emptor" real estate transaction that you will ever have. Make sure you trust your Realtor and listen to him/her!


This is very true. You're truly on your own with foreclosures. I've bought and sold several when i was a realtor.

quote:

Have you checked into the USDA's home loans. Even if you don't live in a rural area, you might be able to get a loan without a huge down.


We have one of those loans on our current home. We have great credit and we were able to get a rural development loan with no money down. You might check into this, seeing as you're in SW MO, which is considered rural.



daughter_of_faith -> RE: Home Loans with excellent credit. (6/14/2008 6:17:45 PM)

Hmmmmm....my credit score isn't in the "awesome" category...more like the "okay" category (depending on where you divide it up). My problem is I don't have ENOUGH credit (in that I haven't had much experience). DH's is about as "bad" as it comes and therefore will not be on the application. He might be added on later on.

We have a loan on our car as well.

According to the loan calculators, we should qualify. Just not really sure. I *figure* that it doesn't hurt to try though.



relady -> RE: Home Loans with excellent credit. (6/14/2008 7:42:33 PM)

Daughter_of _Faith - You need to talk to a lender and let them run your options. There are still lots of programs out there, most just require some amount of downpayment. Also, interest rates are being "risk" rated now. Buyers with just average credit right now are paying anywhere from 6.5 to as high as 7%. One of my recent buyers decided to wait a year because the lowest she could get was 8%. Lower credit scores (below 650) are paying higher interest rates. It's pretty tough, but with home prices where they are, it's a good time to buy. Interest rates are still at historic lows. Only a lender can give you all the details because they know the programs. Find a good one and go through the preapproval process and see what happens.

One of my lenders provides buyers with things they can do to improve their credit score when they provide the preapproval. It's pretty nice.



daughter_of_faith -> RE: Home Loans with excellent credit. (6/15/2008 9:31:34 AM)

Sounds like good solid advice, relady. I did fill out an application for pre-approval from ditech yesterday. Haven't heard anything back. Would you recommend them as being fairly reliable?

The other lender we were thinking of checking with is our current bank. Who better than anyone to know our finances? That's kind of scary because they DO know it so well though. What are your thoughts on that?



relady -> RE: Home Loans with excellent credit. (6/15/2008 12:24:27 PM)

Be very careful with Ditech, but if you can get a good loan from them go for it. Your local bank is a good option. I don't know how large your area is or how many lenders you have to choose from. I'm in St. Louis, so there are just tons of banks & lenders and they ALL solicit Realtors for business, lol. Bank of America had a good no closing cost program last year, and they might be worth checking out. You might also want to call a realtor you trust and get some referrals. Good luck!



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