lb and fla-tan, Thanks to both of you for this discussion. I have gained good information (like from many other threads on this board) lb, you are more like thinking ahead of the system or in other words you are rebellious against the current system. But you know that this system is not going to change that soon, at least not in my life time. Thse CRA's have Docotorates of Mathematics and Professors of Statistics running millions of lines of long complex programs churning the sphagetti code in those ever-so indecipherable scoring algorithms through the huge bad-ass mainframe computers all day all night long. Obviously, someone sometime thought that was a good idea. And "in principle" it is a good idea - as long as those scoring algorithms have well defined parameters and are consistently producing accurate scores that give a resonably well idea of ones track record. Unfortunately, that is not the case. Hence the George-coined term of Random Number Generator and hence your arguement of "smoke the scores" decide based on the track record. I am saying that I hear you both. I agree with fla-tan, even more because I have been dumping my hard earned after tax money and building equity for some one else for years now...
you know, when I bought my house just a month or so ago, the lender barely took my score into consideration. I actually compared deals with two lenders. Neither paid much attention to my scores. They remarked my score was low (553-594), but that my credit history was excellent, so they just ignored the score. It seems to be more insurance agents and credit cards that use the score the most. At any rate, I feel FHA is a wonderful way to go. You are only required to put down 3 percent, and that includes the closing costs, except for prepaids like insurance and taxes. And, there are many, many communities with first time homebuyer bond programs. You don't have to be poor to qualify either. Here in Kansas, for just me and my husband, we only needed to make under 59,000 a year. It was fairly easy to do.
One issue with FHA is that in my county they have an upper limit of like $250K. And here, as in many other metro areas, if you want a half way decent house, chances are, you will end up spending more than that.
Wow, haven't been here in weeks and weeks and come back and my thread is at the top. As for FHA, I don't even know where to begin, I won't go to the local office because I know the hags that run it. I do know that some lenders offer FHA, but most of these companies still look at your scores. Believe me, I don't want to pay these rates, but it is only for a year and what choice do I really have? Our scores literally suck, so we have to find someone who will overlook that and I don't know where to being. I am just really happy that I was approved somewhere, as anyone with my scores know it is hard to get any kind of approval at this stage.
Remember renting is just like buying...Only for somebody else. fla-tan ================================== Problem is Scoring sends folks to the landlord rather than a home seller.
1*But you know that this system is not going to change that soon, at least not in my life time. 2*Thse CRA's have Docotorates of Mathematics and Professors of Statistics running millions of lines of long complex programs churning the sphagetti code in those ever-so indecipherable scoring algorithms through the huge bad-ass mainframe computers all day all night long. chargedoff ===================================== 1*There is only one reason for this and that is because consumers won't demand the changes. The so called system could well be headed for self destruction anyway. 2* This don't mean that what they do with the results will work in fact the market place exposes the error of their ways. Let them continue adding glitches to it as it will just hasten its self destruction.
I have low scores too...in the mid to upper 500's. However, i had no problem at all obtaining an FHA loan and being approved for one through two different companies. Both, I think are nationwide, or close to it. I went with Countrywide... www.countrywide.com I was also accepted at First Horizon Home Loans...don't know their web address. I really do recommend you check them out...with the FHA financing a lot of lenders don't care as much about the scores themselves because the loan is backed by FHA mortgage insurance, so they get their money regardless! they have to follow the FHA guidelines for Credit worthiness, I think, when considering FHA financing.
I posted this in a separate message but I am going to repost it here. Call Fannie Mae @ 1-800-732-6643. There is a program out there for people with flawed credit called Timely Payment Rewards. It allows people who would normally be sub prime to get a closer to prime rate instead of the double digit rates, under 10%. The other bonus is if you make your payments on time for 24 months they will drop your rate 1%. I just called Fannie Mae today to ask and they are sending out a package to me. Each state has different guide lines and lenders who particpate. The names of the lenders particpating are included in the package. I will post what else I find out as I proceed. Hope this helps someone out! HockeyMom
