udsweetpea

How is this a "no closing cost" loan?

sweetpea This question is better answered in the Credit Forum and I will move it there for you. fla-tan Thanks. Fla-tan, what is your experience in clients paying off collections before closing on a loan?

I have a friend who disagrees with me about the effect paying off collections has on your credit report. I've always been under the impression that paying it off will temporarily cause the date of last activity to now report as today, and therefore, the credit score will drop for a few months and then turn into good credit eventually. Am I wrong?

All mortgage companies have their own special magic number, but getting PMI is the hard part. Most PMI companies like to see 580 or 620.

Remember that you need to claim enough on your taxes for self-employment in order to qualify as well. Most self-employed borrowers have now run into a problem of not being able to get approved because they don't claim enough or any at all on their taxes. I've seen DU Findings state they only need 6 months self-employment.

Why do you want to use FHA? You most likely qualify for a MyCommunity 97, which has the same MI rate as FHA.

Ask your LO if the loan origination and mortgage fee are being paid to lower your rate. If they aren't, that's just extra money for him on top of a yield spread. Get a second opinion. All other fees look fine to me.

yes.

Your 5k will pay for closing costs. If you want to put money down, you should come up with some more cash. Regarding this little debate... you asked for suggestions on things you should know. You were given that. If Fannie Mae has deemed Denver as a declining market, there's no ifs, ands, or buts around it. You'll need 5% down. I'd recommend reading that article cedski posted. That's the reading material you asked for.

21st Mortgage, US Bank, National City are some lenders that offer programs for manufactured homes. I don't believe any of them offer No Doc programs. Why do you need to do No Doc?

I got someone approved yesterday on DU with one score, so it can happen.

Is the origination fee an actual origination fee or a discount fee to bring down the rate? If its an origination fee, I'd get that waived.

How much do you owe and how much is your home worth? What are your scores?

Is the LO charging the origination fee to bring down the rate? Doesn't look like it, so its unnecessary.

The investor I know does short sales. He writes up a contract with the home owner and then negotiates with the bank to lower the balance of their loan.