hoosiergirl

That's a great tip- thank you for your input. Do you know if a bank would do this for us?

Hi, My husband and I are on the brink of qualifying for an FHA mortgage, and we have found the house that we like. It's FSBO, and the owner is interested in doing an owner-financing arrangement (not lease/purchase). We are considering doing this while still building up our credit, and then refinance with a traditional lender once we reach a point where we fully qualify. I don't really know anything about refinancing, and am wondering what sort of items are required to qualify for refinance approval. Is it as difficult as qualifying for the initial mortgage? Thanks!!

Thanks- unfortunately we aren't eligible for USDA due to our income. I wish we were though b/c 100% financing would be sooo nice!

bump

We recently relocated from IN to LA, and I'm trying to figure out which SOL applies to our outstanding collection accounts. We have several that are all over 2 years old, and am not sure if the LA law would now apply, or if it would be IN since that's where we lived at the time the debt was incurred. Can anyone help? Thanks

Thanks- I appreciate the suggestion and will definitely f/u and let you know how it goes. I am finding some questionable reviews of one company (LendAmerica), and when I spoke with them today their rep seemed sort of schmoozy, like it was so easy to get a mortgage and why would I be questioning if we could be approved. It seemed too good to be true for sure... I talked to the guy from US Bank today as well, and he seemed much more realistic about our situation. What I'm finding is basically if we can pay off the collection accounts we have, our chances of getting a mortgage are pretty good. With the US Bank program, he said that we have to show that we have the funds available to pay for the CO acccounts, as well as cover our down paymetn, closing costs, etc, but that we wouldn't actually pay them until closing. Is it true that we should only let one mortgage company pull our scores b/c if we do more than one it will hurt our score? That's what they are telling me, but I also thought that if all of the pulls were within a certain amount of time then it was counted as one?

Thanks! I transposed the # on my husband's score and it's actually 578... Wish it was 758 though!

My husband and I are almost there on our credit scores to hopefully qualify for an FHA mortgage, and I stumbled across some mortgage lenders that say they will write mortgages with scores below 620. I emailed a few to get some information, and the two that responded both said they thought we would qualify with our current scores (611/605 me; 603/758 hubby). Has anyone worked with these companies before: American Financial Resources (NJ based) US Bank It seems too good to be true that we may be at the point where we could get financed now, but I'm skeptical of these companies b/c they seem to go against everything else I have read. Thanks for your input!

Thank you all for the response. I appreciate everyone's input and am not going to give up!

Thank you- that is promising. I'm not sure how bad my scores will go down since the account was already being reported, but just as a collection and not a judgement. I guess time will tell... We have an opportunity to do owner financing on the house we like, and it might be a good option for us if we can't get approval now w/ my stupidness...

I'm so bummed... My husband and I have been working on our scores for months to prepare to buy a mortgage and I had one glaring collections acct on my report that was the big issue. It was an old BOA credit card that I had received a summons on. I answered the summons and then didn't hear anything back for almost 3 years. In the meantime, we moved from IN to LA, and me, being too afraid of what the outcome would be to check, did not follow-up to inquire on the status, and today a judgement showed up on my report. I'm so angry at myself for letting this go and now I feel I've ruined our mortage chances as a result. Does anyone know how this will impact us from a mortgage perspective? I am planning to pay it, but am worried now that a new judgement is showing that we will have to wait longer before someone will approve us. The account was already showing on my report as a collection- does anyone know how negatively it impacts me with it going from a collection to a judgement. I guess I've learned a lesson- don't be afraid to find out what's going on with your accounts b/c it can come back to bite you in the end. I feel so sad...

Oops- nevermind on the $50K question- I misread the posting last night. We should be okay since we would need to borrow around $130. Thanks!

Thank you both so much for the responses! I'm not sure I understand the comment about borrowing less than $50k- the house purchase price is around 150, and after a couple of years, we would still need to finance at least 130 I'm guessing. Would that be an issue?

I was able to get into the SLFC on-line account for my husband last night, and now this loan is showing with a zero balance and a status of transferred. When I clicked on the transferred link, it took me to a CA site called RAB Inc.. I'm assuming that since the balance is reporting zero on his SLFC account, that they sold it to this CA. Would you agree? Also, are private student loans subject to the same SOL as say a credit card, or is it different? Thanks!

I'm honestly not sure where the loan was from before Student Loan Finance Corp started contacting us. I had assumed all loans were government backed, and am just starting to learn about the private student loan companies out there. Does anyone know if a loan being collected from SLFC would be government-backed, or private? Or does it depend on who the original loan was through? Thanks