How much does a judgement hurt? It only shows up on ONE of my CR.. and it shows as PAID, SETTLED as of 2001. The amount is roughhly $2k. I am currently trying to dispute this w/ the CRA.. it's my only negative. Assuming when I go and apply for a mortgage and I have flawless credit on all 3 reports EXCEPT that 1 judgement on 1 report, what type of loans can I expect to receive? What rates and how much? I know the amount will depend on my assets/gross income.. but just want to get ball park figures and how much the judgement will effect me. thx in advance..
Hi Ender What is the judgement for? That will have an effect on your rate. Also when in 2001 was it settled? If you just settled in late 2001 then that will have more effect than if settled at the beginning. What are the scores that you have on all 3 bureaus? Without knowing more about your situation I can't give you much of an assessment, however I can say that in the worst case you are probably looking at somewhere between 8-10.5% and you may be able to qualify for an Alt A or A- loan. Hope this helps and good luck. fla-tan
Are you a first time buyer? Check out any city/county/state first time buyer programs. I bought through one of those las year w/ a judgement and still got a rock bottom interest rate.
Sat Judgement file 8/98. Satisfied 3/01. Amount is roughly $2000. As for my Credit Expert (EXP) score, it is 795. My EQ is where this judgement appears. My TU will be near perfect score as well.. hope that can give u more of an idea? Thanks..
Ender Based on this information, since the judgement is over a year old, you should be able to get a mortgage without much of a hit on the rate. What state are you in and how much are you looking to put down? Also, what was the judgement for? email me if you want. fla-tan
I am in CA. Does it matter how much I want to put down? If I can't get 20%, I would do a 2nd mortgage so I can avoid PMI.. The prices are expensive around here.. but I want to just look at my options. I was also consdering flipping real estate to do some income and even trying to do 1031 to get some rental income as well. I am considering a house for myself.. if I can get something reasonable (4bd/3bath) for around $300-$350k which I doubt at this point.. but if I can, then I would like to stay here for 2 years, move into a bigger house and keep doing that. I would alos have roommates as well.. Anyhow, I wanted to get a feel for how much this 1 judgement would hit me.. As for how much to put down.. I can probably put down around 50k? I have about 15k now, but in the next 6 months, i should have more and especially if I cash out my options. Anyhow, thoughts? Thanks in advance..
Since I am in Fl, I am not conversant in Ca mortgage practices so all I can give are general gudielines for you. You may want to look at an 80/15/5 or an 80/10/10 and that will allow you to avoid PMI. (That, for the uniniated means 80% 1st with a 15% 2nd and 5% down or 80% 1st with a 10% 2nd with 10% down) You will most likely need to keep your front end DTI under 30% and your back end DTI under about 45% for conforming. I don't know what the max for FHA is in Ca but I doubt it is high enough to cover the price range you are looking in. If your income isn't high enough or your debts are to high to keep you in those ranges, then you may want to consider non-conforming or stated programs both conforming and non-conforming. Stated programs will raise your rates some, but will give you additional options. Ender, I hope this helps. fla-tan
