Profile picture for TeeGold

Help First Time Home Buyer.

Help pls... I reviewed my credit from myfico.com and I had 647 points. I knew I had some late payments on my reports which I needs to work on with my creditor and payoff some accounts down, also have student loan am dealing with. With all that, would I be able to get or qualify or get a good deal on home loan? Or should I wait another year just to get some accounts paid down and work with some of my creditors on the late payment on my reports? also I would pay off my car note by next year. Pls. I need your advice. Also I wanted to take this opportunity to thank all those that responded to my first posting. Thank you all.

  • December 06 2010 - Burtonsville
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Answers (14)

Now is a great time to buy.Housing is very affordable. What I would suggest is to ask your family to recommend a loan officer they have a good repore with and call ask for a free pre-approval letter that way you will know how much you qualify for.
  • December 06 2010
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Sounds like you could qualify for a FHA loan. You would be required to have 3.25% down. But, first I would suggest you have your credit report reviewed by a licensed mortgage originator. They could determine what is hurting your scores and recommend some repair options.
  • December 06 2010
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You should be able to qualify for an FHA loan. Rates are very low right now. I would suggest you talk to a loan originator to see exactly what you can qualify for then go from there. 
  • December 06 2010
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Hi Gold....

Technically, FHA does not impose credit score requirements...and your 640 score should qualify you easily for an FHA loan.

I did wish to correct one post that stated you needed 3.25% down, actually, FHA requires 3.5% down!
Best of luck in your new home!

Jim
  • December 06 2010
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I would find a good loan officer, perhaps a family member or friend can recommend and go from there. Based on what you qualify for and what calculated a monthly house payment, decide whether you are comfortable with that and go from there.
  • December 06 2010
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To back up what James replied about the FHA loans, 3.50% is typically what is required for a down payment.
 
However if you want to get a great deal on a home thoroughly inspected, with assistance for your closing costs, potentially repair amounts set aside by the seller. You can get into a HUD home with only $100.00 down! Thats right, its not a misprint $100.00 down!  The HUD homes give you a chance for a great loan and little out of pocket costs.

Of course there are a few stipulations, you will need to offer full price of the listing, be an owner occupant, and utilize the FHA loan. This is a special program set up with FHA to purchase HUD owned homes.

You will want to locate a REALTOR registered with HUD in your area to utilize their expertise through the bidding process and to obtain more information about this program.
Visit www.hudhomestore.com to locate homes and REALTOR's in your area.

Hope this helps in deciding what the best route would be at this time, but you should definitely know all great options available that most don't mention.

Also if you live in a rural area, there are many great loans out there with little down.

Best of Luck in your new home,
Rhett Allen


  • December 06 2010
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It's such a great time to buy right now, I'd hate to have you pass up the opportunity you may have.  Ask friends or family for a name of a loan officer who can help you along in the process.  If you can get pre-approved, I would say go for it.  Best of luck to you!
  • December 06 2010
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Profile picture for the_country_hick
If you can buy a house with $100 down trying to buy now is just stupid!!!

So many people will buy that way and then get foreclosed on when they do not pay the bill it will make subprime look like a party.

When will we realize that people need a REAL down payment?

"I put $100 down on the house. 9 months later it needed $5,000 in repairs. I stopped making payments as it made no sense to pay 50 times as much for a repair as my down payment was."

I can see that statement being made, especially as house prices drop even more. Can you?
  • December 06 2010
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If you qualify to buy now, don't wait. The good prices and historically low interest rates won't last forever. Waiting to increase your rating will cost you more in the long run.  Seek  a loan officer to get qualified and then get a good realtor to start your home search.  

If you don't have a trust worthy loan officer I can recommend one. 
  • December 06 2010
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Profile picture for jadedea
"I put $100 down on the house. 9 months later it needed $5,000 in repairs. I stopped making payments as it made no sense to pay 50 times as much for a repair as my down payment was."


hahaha, i guess there are people out there like that?? it would behoove those to get an inspection done even on new builds.

i like how rhett says "thats right" im just waiting for him to say "..but wait, theres more! if you act now..."
  • December 09 2010
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Please make sure you're not jumping the gun and getting "over your skis" with debt. Sad to see so many people in credit trouble in these tough times. While not "conventional wisdom" in the real estate world, I suggest you pay off some debt and get that credit score up a bit before taking on the huge expense of a home purchase.
  • December 09 2010
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You'll definitely want to meet with a knowledgeable loan officer to go over your options.  There may be local or state programs that will meet your needs exactly.  Oregon has the State Bond program which recently was funded after a long absence and it'll be ideal for many in your situation- so check out local programs and credit union programs that may not be widely known as well.

Dave at [content removed by moderator]
  • December 09 2010
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Hi, The FHA requires 3.5% down payment not the 3.25% posted by someone earlier. Since you are a first time homebuyer you can get a Maryland CDA loan at 4% no points. The loan must be a government loan pprograms such as FHA, VA or USDA. There are qualifying guidelines as with all loans and income limits. The incomes limits for the Washington DC area is $102,000 a year. Let me know if I can be of assistance
  • December 18 2010
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Hi Gold, to give you an aducated answer, a lender would need to look at not only your credit report and your yearly income but also take into account any expenses you have on a day to day basis that may need to be reduced if you buy now. You actually have a 2 part question, #1 would you qualify for a home loan now and #2 how will the new payment affect your present day spending habits. Just because a lender says you can afford a home, they are not going to be the one's eating Ramaine Noodles every night if money gets tight. You need to decide on a personal level what your confort lebvel is in relation to debt.

There is a great program for first time home buyers in Maryland. 4.0% interest rates fixed for 30 years and $5,000 in down payment/closing costs assistance. I'm an approved lender for this program and would be happy to assist you. 

  • December 29 2010
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