is bank of america an online mortgage company? I'm nre to this, I guess I was dumb, didn't even even ask teh interest rate after she told me what we could be approved for, I was crushed. Another company said approved us at 67,000. Maybe it's just our debt. we have: student loans: 330 car: 333 credit card pymt: 10.00 jody
hurlee The amount that you end up qualifying for will be based on multiple factors. Based upon your income you should qualify for about 900/mo in total mortgage payments. Your total monthy debt however, is not supposed to be over about 1300/mo. that may be what is keeping your total purchasing power down. That is based upon 28%/41% debt ratios. FHA is a little bit more generous than conventional as far as debt ratios go but not a whole lot. Also, many times even though conventional is supposed to be 28%/38% I have seen conventional go as high as 45% on the back end. Also understand that from what you are saying, the 73,000 is the mortgage amount not the purchase amount. Good luck with the house hunting and I hope this helps you to better understand the dynamics. fla-tan
Newstdt Thanks for the kind words. Conventional lenders will generally allow for a BK as long as it is over 4 yrs. old. Also, and this is EXTREMELY important, once you have gone through a BK mortgage lenders will look overly negatively on any lates on credit so it is imperative that you pay ontime and have 0 30 day lates. fla-tan
Just a minute, Professor. 1. "As usual" makes it sound as if we have some long history, and that's certainly not true. 2. Bore us with all the reasons; these people are here to learn. 3. Subprime loans are conventional loans. Non-conforming loans are conventional loans. You have it wrong. I'm not trolling for a fight. I'm discussing loan programs. Who are three lenders who you're sure will take the credit scores hurleee mentioned?
Greg 1)...The history is short and if you are going to continue to make incorrect statements I would prefer to keep it that way. 2) No. 3) Sub-prime loans are NOT conventional. They are called non-conforming because they DO NOT meet either Fannie Mae or Freddie Mac conforming guidelines as to credit worthiness. Conventional loans are conforming because they do fit either Fannie Mae or Freddie Mac guidelines. Again Greg...you are FLAT OUT WRONG. 4) Chase; Bof A; Wells Fargo all are lenders that have programs that will allow scores like hurlee's. Greg you are starting to come off like an idiot child. Please stop while you are behind. fla-tan
Hold on a minute, Tanman. According to the Mortgage Bankers Association of America conventional financing is "Mortgage financing which is not insured or guaranteed by a government agency." http://www.mbaa.org/consumer/glossary.cfm Subprime loans are not guaranteed by a government agency. HUD defines a conventional loan as "a private sector loan, one that is not guaranteed or insured by the U.S. government." http://www.hud.gov/offices/hsg/sfh/buying/glossary.cfm And even Fannie Mae defines a conventional mortgage as "A mortgage that is not insured or guaranteed by the federal government. Contrast with government mortgage." http://www.homepath.com/cgi-bin/Web...ssary?title=glossaryc&wosid=nF5000X1400Bq700o What's your reference?
Greg Once again you are attempting to put words that I have not said into one of my posts. What is your problem? Are you just trying to cause discord or are you trying to replace Bobby as a perveyor of misinformation? Would you care to show me where I stated anything about government insurance of a conventional mortgage? Only FHA and VA loans are insured by the government. You are really starting to reach here. If you would READ what I posted you would see I was talking about Fannie Mae and Freddie Mac guidelines. Would you like for me to try to explain it again for you, but this time slowly? A conforming loan meets Fannie Mae or Freddie Mac guidlelines and is thus eligible to be sold to one of those government sponsored agencies. Conventional mortgages meet those guidelines. Non-conforming loans do not meet those guidelines and are not eligible to be bought by either Fannie Mae or Freddie Mac. Sub-prime loans do not meet those guidelines and thus are not eligible to be bought by either of them. BTW Greg, what mortgage background do you have? Greg before responding please remove your foot from your mouth so all can understand you. fla-tan
Flan Tan thanks for all this input, if I were to refinance our vehicle, possiblly buying another car and trading ours in,(in order to lower the monthly payment) would that lower my chances of getting a mortgage, even if it lowers my payment? Maybe if we go that way We'll wait a few months to buy a house. I'm trying to get our debt ratio down, what do you think?
hurleee First let me apologize for two reasons. First I believe I have been misspelling your name in earlier posts. Second the actions by Greg to attempt to hijack your thread into another discordant area. Anything that you can do that will lower your monthly minimum payments will be a positive. You may also want to look into consolidating your student loans. I have seen that be a big help in lowering debt ratios. Depending on how much you owe, you could lower your payment by 40% or more. fla-tan
I don't have a problem, and I'm not trying to misrepresent anything you said. Anybody can see what you said, and what I said. That falls into the "How long have you been beating your dog?" catogory. I'm trying to do neither. You didn't. But you mentioned government loans requiring private mortgage insurance. Not good. What about USDA Rural Development? Subprime loans and non-conforming loans are conventional loans. I showed you three sources of that definition. You showed none. If you're saying that I should take your word just because you're in the business, I won't. My credentials are in my signature and profile on this message board. Subprime loans and non-conforming loans are conventional loans. I showed you three sources of that definition. You showed none. Some of your peers agree with me: http://www.google.com/search?hl=en&lr=&ie=ISO-8859-1&q=conventional+loan+not+insured+or+guaranteed
mabey this will help explain things... conventional loan = conforming non-government loan. The portion of the loan above 80% can be dealt with a number of ways. One being by obtaining an "insurance" from a private company thus Private Mortgage Insurance. a premium is charged for this and added to the loan. fha/va =conforming government loan. Uncle Sam guarantees the portion of the loan above 80%. this "insurance" is a government thing so to call it PMI is technically incorrect. MIP or mortgage insurance premium would be a better term. but it is essentially the same thing. The portion of a mortgage above 80% loan to value is the greatest risk to lenders. It is my understanding that "insuring" this part of the loan is where credit scores really come into play. non conforming= risky to lenders, for whatever reason. stated income, no doc, poor credit ect.
Fannie Mae describes a jumbo loan as "A loan that exceeds Fannie Maeâ??s mortgage amount limits. Also called a nonconforming loan." Mortgage brokers coddle their applicants with poor credit-- and assuage their feeling of inadequacy-- to help them avoid the stigma of the term "subprime" by using the term "non-conforming."
Making life-changing decisions with information on a message board from the anonymous, and "qualifiying" over the phone with a salesman-- when lenders and brokers are waiting to take your complete application and give you a serious answer and loan commitment-- is folly.
coralreef thanks for the input. Let me add my understanding on the subject as well. ===================================== mabey this will help explain things... conventional loan = conforming non-government loan. The portion of the loan above 80% can be dealt with a number of ways. One being by obtaining an "insurance" from a private company thus Private Mortgage Insurance. a premium is charged for this and added to the loan. ===================================== "fha/va =conforming government loan. Uncle Sam guarantees the portion of the loan above 80%. this "insurance" is a government thing so to call it PMI is technically incorrect. MIP or mortgage insurance premium would be a better term. but it is essentially the same thing." coralreef you are basically correct. I used PMI instead of MIP because I thought that more people would understand that.I probably should have been more clear in my explaination. Though you are a bit off on the "guarantee" portion. The government guarantees the entire loan amount. If any federally guaranteed mortgage is forclosed upon, the government pays off the lender and actually takes ownership of the property. That is why you can purchase homes directly from either HUD or VA. (I have not been involved in this area) ===================================== The portion of a mortgage above 80% loan to value is the greatest risk to lenders. It is my understanding that "insuring" this part of the loan is where credit scores really come into play. Actually, credit scoring has more bearing on whether or not the 80% conforming portion of the loan meets guidelines and that is what makes it sellable to either Fannie Mae or Freddie Mac (though many times the loans aren't actually sold to them but is sold in packages of 10-50 million dollars to investors.) ===================================== non conforming= risky to lenders, for whatever reason. stated income, no doc, poor credit ect. Any loan that does not meet either Fannie Mae or Freddie Mac guidelines will qualify as a non-conforming loan. Jumbos are also considered non-conforming no matter what the credit score is. (any loan over $300,700 is considered to be a jumbo loan) fla-tan
Greg What are you trying to say here? Wouldn't it be better for someone to get all the information they can prior to talking to a mortgage company? Why couldn't an answer give on this or any other message board be serious as well? What do you mean by ""qualifying" over the phone with a salesman"? And does that mean that all answers that you give aren't serious as well? fla-tan
Greg Any loan that does not meet either Fannie Mae's or Freddie Mac's guidelines for any reason are called non-conforming. Many times it has absolutely nothing to do with credit. Good mortgage brokers don't "coddle their applicants with poor credit". And it has nothing to do with "assuaging feelings of inadiquacy". It does have everything to do with trying to help people to improve their standing. Even when the borrower pays sub-prime rates, they are much better off in most cases over renting. Now I am not going to deny that there are some people in the industry that are out to take advantage of people who don't meet criteria to qualify for conforming mortgages, but they are definately totally in the minority. fla-tan
I'm not trying to say anything, I actually said what I said. No. "All the information they can" could take a lifetime to get. Instead of ready, aim, aim, aim, aim, fire-- it should be Ready, fire. This person is wringing their hands when they should be filling out the forms. Because the consumer isn't willing to put their entire set of data on the Internet. You're underwriting this borrower based on a fraction of the information included in a loan application. I mean qualifying over the phone with a salesman. I mean yakking ad infinitum with loan originators, as opposed to putting on one's shoes and socks, gathering one's documents, getting in the car and applying for the loan-- with hat in hand because one's credit isn't so great according to the generally accepted statistics. They'll get more information and education by actually DOING SOMETHING (applying)-- getting a credit report and an answer, good or bad. They don't have to close with that company, but they'll be about 50 steps ahead of someone who doesn't apply-- for the cost of a credit report. This "pre-qualification" garbage that the industry sells to first-time homebuyers is a joke. Both sides are all talk and no action. It's general laziness and impatience of the MTV generation. No. My answers are documented by laws, regulations, guidelines, and other sources of authority, as opposed to a cockeyed notion of the structure of the world based on rumor, wives tales and guesses. Your contrarian thing is wearing thin. Go back to your definitions above and show your sources-- then, maybe, we can discuss something deep like that. "Maybe if we go that way We'll wait a few months to buy a house" sounds like somebody who has given up before they've even applied for a loan.
