All: I just want to share that I closed on my $200,000 house yesterday for 0 down at 5.5% (30 yr fixed) with no mortgage insurance. I wouldn't have been able to get this great deal without creditnet. Here's how I did it. 4 months ago I started with about 16 derogs. I went to a bank to get pre-qualified for a 0% down loan but I was denied because my scores were not high enough. My scores were 643, 678, and 701. I got depressed because I really wanted to buy a house but didn't have the money to put 5% down. Someone from www.interest.com told me about this site and after reading for a while, I decided to take action. I started sending out goodwill letters to get rid of most of my derogs. In less than a month, I was able to get rid of 13 derogs!!!! By the way, while waiting on the goodwill results, I started disputing old addresses on my reports. After getting rid of the old addresses, I started to dispute a collection account that's being reported on all 3 bureaus. Within a month, I was able to get it deleted on 2 bureaus. The other one is still under investigation but my scores went high enough that the last collection account on one of the CRAs didn't affect my loan at all. My scores were 726, 735, and 750 when I applied for a loan. I thought I'd share this positive experience with everybody. Don't lose hope. It can be done! =) -GC
Congrats! Well done! What program did you use for those fantastic rates, if you don't mind my asking? Thanks,
Wells Fargo 80/20 program. The 80% is 5.5% and the other 20% is 5.8%. The qualification is that you must have stable work history and middle score of 700+.
Glad to hear it all worked out after that mini-interrogation I gave you a few weeks back ! Way to go !
Ok, I'm having a little trouble understaing exactly what you "own." You took out mortgages totaling 100% of the property's value. Therefore, the bank owns the house, and you owe them payments, right? On top of it, you now get to pay the taxes on the property, as well as the repairs, remodeling, etc. Sounds like a great deal. In about a year, when that $200,000 house is worth $170,000, things will get interesting for you, I'm sure. If more people here would stop patting each other on the back for bad financial moves, and instead use some common sense, they'd be a lot better off.
It's possible the home might drop in value in the the next year or two. But what about interest rates? They seem much more likely to rise in the future. Let's say her home next year is worth your predicted $170k but interest rates have risen by 1.25 points, increasing GC's rate to 6.75. Her payments for a 170k house at 6.75 would save her an extra $33 a month. Interest rates will eventually rise. In five years if they have risen 2.25 points from today, placing GC at a 7.75 rate, and the house decreased in value to 160k, the payments would increase by $111 from today's payment.....maybe not such a bad deal. As far as the property taxes go, this could be a good thing for GC, as he/she may have more taxes to deduct from their income. Instead of taking the standard deduction, common for most non-homeowners and non-business owners, now he/she can itemize, which is likely to substantially decrease the amount of her/his taxable income.
too much, i made the decision... i'm the one paying the mortgage and all other expenses you mentioned.... so that should be my problem.... thanks for your comments though. iiizzzz aaaallll goooood.... GC
too much, i made the decision... i'm the one paying the mortgage and all other expenses you mentioned.... so that should be my problem.... thanks for your comments though. iiizzzz aaaallll goooood.... GC
Yes, until the poster needs to sell the house that they are upside down in. You cannot sell a $170k house if you owe $200k on it. Over the next few years, that lesson will be learned the hard way by the current homebuyers. Kind of like sheep being led to the slaughter. There is never a good reason to finance 100% of a home's value. Never. As far as the taxes go-- most "buyers" don't get to take advantage of the tax breaks anyway, so the savings is limited. The vast majority of homebuyers who have to finance 90%+ would be much better off renting until they could save enough to put 20%+ down. However, don't expect any real estate salesperson or mortgage broker to tell you that. They can always find a way to spin the numbers to make a 100% LTV loan look good. Do the math....
Congratulations. Let's hope you remember this site so you can get the Chapter 7 filing advice in 2005....
Re: Re: I'm A Homeowner Now!!!!!! My ma's always said... if you don't have anything good to say.. [] I'm exercizing a lof of restraint not to say what I really want to say in response to this
