Typically when a lender "won't touch" a loan product they either have poor support staff or aren't familiar with all that's required to complete the loan. These loans do not require much extra work, but it is important to have great communication amongst all parties. You can plan on a 45 day close from start to finish.The interest rate is usually the same as a normal FHA loan and the fess are not much higher, typically less than $1000 unless expensive permits are required by the county for repairs.Depending on your qualification and the home's post renovation value, there is also a conventional renovation loan that may be advantageous in your situation. This loan allows for the repairs/renovations similar to 203k, but follows conventional guidelines and the mortgage insurance is significantly less.Don't be scared of these loans, but definitely make sure you work with someone who has completed these loans and is familiar with the processJake
The collections you describe do not necessarily prohibit you from getting a loan. Most loan programs will disregard entirely your medical collections.The other collections are addressed differently based on the loan program you qualify with, but there are definitely options for you.It would be a good idea to have a mortgage lender take a look at your full credit report and put together a solid plan of action for getting you prequalified.Jake
I would also speak with a lender in regards to your medical collections. It may have no or even negative impact on your scores to pay those off.Overall you are on the right track, I definitely recommend getting a full preapproval started with a lender to get your ducks in a row.Jake
The short answer is that this can be done, legally, with few issues. Documenting appropriately will be important, probably not something that can be fully detailed on a message board. Give a local lender a call, pretty simple scenario for anyone that has been in the business awhile. Jake
Based solely on this information, there would be some options for you. Naturally other factors come into play, but the low FICO would not necessarily disqualify you.-Jake
The short answer is yes, there is quite a bit of policy for FHA loans regarding specifically to collections. You need to have a lender pull a credit report for you to find out your exact position for getting preapproved.
It shouldn't be normal, but unfortunately there are a lot of companies out there that don't provide adequate service.If it's been 3 weeks and you haven't heard from the lender that's a major warning sign that you should be looking else where. I recommend talking to a local licensed mortgage banker that is available 24/7 and returns any messages same day.Jake
FHA only requires that loan approval be issued after the 3 year waiting period. So to answer your questions, yes you should get preapproved now and yes you can submit offers right now.Most banks are going to require about a week to close after submitting to underwriting in order to receive initial approval, clear any conditions, send docs for signatures and fund the loan.Your agent will need to submit offers with a COE date no early than August 11-12th range.Jake
This depends on the type of loan you are trying to get typically the waiting periods are as follows:FHA - 3 yearsVA - 2 yearsUSDA - 3 yearsConventional - 7 yearJumbo - 4-7 yearsAs is always recommend, you should speak with a lender directly to discuss all of your options.Jake
I recommend speaking with a real estate agent to get an MLS search started. Zillow is a great tool to give you an idea of what is available, but a local realtor will be a much better source for narrowing your search to something specific.