Mortgage question...

Discussion in 'Credit Talk' started by jond911, May 19, 2003.

  1. jond911

    jond911 Well-Known Member

    What does it take to get "lending tree"....B of A... or some of the other larger lending institutions to take a look at somebody with great credit, but yet, a small amount of cash...lets say 6k cash for down payment on a "used" home....

    I'm a bit befuddled here.... I've been away for quite awhile but have received some great feedback from this forum...

    I'm just amazed that I get cut off on online pre-approval sites because I don't have 13K for a down payment on a 125K home...

    what gives???

    Thanks
     
  2. fla-tan

    fla-tan Well-Known Member

    jon

    I can't tell you why online sites cut you off. However, I can tell you that there are conventional mortgages available that will allow you to buy a home with virtually no money out of pocket. There are 100% and even 103% mortgages available. You will probably have to go through a broker or live lender though.


    fla-tan
     
  3. Mycroft

    Mycroft Well-Known Member

    Lending tree sells leads to mortgage brokers. Your application is worth cash to them, it's purchased by a lender looking for business.

    I have no idea why they won't take an application for 100% financing. There are plenty of products like that on the market. I suspect it's because not all the brokers that buy their leads want to do those loans.

    Personally, I think the best way to find a lender is through personal referral. Ask your friends and family who are homeowners who did their financing, and if they liked them. In mortgage lending, the individual loan officer is a lot more important than the company he works for in getting good service at a good price.
     
  4. my2sentz

    my2sentz Well-Known Member

    jond911

    Not sure where you live, but if it is near a major metropolitan city, there is a program out there called Neighborard Assistance Corporation of America (NACA) that assist low to moderate income people with obtaining mortgages. NACA's assistance is not dependent upon credit scores, perfect credit, or even income. They will look at what you currently pay towards rent, coupled with what you are able to save on a sustained monthly basis and qualify you for a mortgage. All participants must have 12 months on time credit card, loan, rental payments.

    NACA does not require a down payment, there are virtually no closing costs (only pre-paid expenses that are your responsibility, which are minimal) and your mortgage will be fixed for 30 years at 1% below prime rate. According to their website, a blessed couple received a mortgage a 30 Year Fixed Rate Mortgage at 4.625% on May 16th!

    I encourage you and others to check out www.naca.com. You have to attend a workshop and meet with housing counselors, which can take time. Lord, it can take time! But considering all of the above, it's well worth it. My husband and I are currently going through the program and hope to receive a mortgage by August 2003.
     
  5. jond911

    jond911 Well-Known Member

    Thanks for the insight...

    I'm trying to clear the cobwebs from my head, and just need to dig a little bit.

    You guys/gals are great :)
     
  6. rjones2002

    rjones2002 Well-Known Member

    im assuming this company would not report the mortgage to the Credit bureaus since any credit can be approved?
     
  7. fdjtwins2

    fdjtwins2 Well-Known Member

    Rjones2002,

    How long have you and your husband been in the program? How many workshops or meetings have you been to so far? What were the min prepaid fees you were taking about? Do you know of anyone else who has been through the program?

    tks
     
  8. rjones2002

    rjones2002 Well-Known Member

    Re: Re: Mortgage question...

    fd, I have not joined this. I was wondering if they report to the CRA's
     
  9. rjones2002

    rjones2002 Well-Known Member

    Re: Re: Mortgage question...

    fd, I have not joined this. I was wondering if they report to the CRA's. However, I did speak with this company directly and was told that they work directly with Bank of America.
     
  10. fdjtwins2

    fdjtwins2 Well-Known Member

    My2sentz,

    How long have you been in the program and so far how many meetings have you been through?
     
  11. my2sentz

    my2sentz Well-Known Member

    1st counseling session December 2002, 2nd counseling session February 2003, upcoming 3rd June 2003 Reason why it is taking us this long is we needed to clean up some outstanding items on our credit report, which included two identity theft items, that appeared at the 11th hour prior to our 1st and 2nd counseling sessions. We were tempted to abandon the program and go conventional, and even spoke to different mortgage companies. But NACA seems to be the best home buying program out there and the mortgage companies that were aware of the program know that they can not beat what NACA offers. So, we decided to wait and continue to save money. Since that time, the mortgage rates have continued to go down. So I just bless God that He has made us wait for even more favorable mortgage rates.

    Now that the identity theft items have been cleared, weâ??re going back for 3rd and hopefully final counseling session prior to being qualified by NACA in June 2003.

    FYI, NACA doesnâ??t underwrite the mortgage. NACA only sponsors the program. The mortgage underwriter will be BofA, Fleet, or First Union. So, it is definitely a legit program. NACA sought companies that were former predatory lenders, campaigned/boycotted against them, basically made their life miserable, by disrupting their normal business pursuits, until they agreed to set aside $$$$$ for mortgages that will be offered to NACA applicants at more favorable rates. NACA is now targeting CitiFinancial.

    By the way, if you know of anyone that has a high interest rate, they can have their mortgage refinanced via the NACA program at the current fixed rate.

    Yes, a friend of mine went through the program and she highly recommends it. For some of us, it requires a lot of patience. Best advice, I can give is to make sure all financial paperwork is in order and in accordance with what is recommended at the workshop. If you follow the guidelines set forth at the workshop and via the reference book, you can breeze through the program.

    For purchasing in the MD suburbs of Washington, DC, NACA requires a $5,000 reserve, plus 2 months mortgage payment savings. For us this means a total savings of $8,200. According to NACA, we would only need to use approximately 1/4 of this amount to cover pre-paids. Even though NACA does not require closing costs, you can still request the seller to contribute towards closing costs to help offset your prepaids. Plus you can use matching non-profit gift funds to buy down the mortgage rate even further. By the time my friend finished with closing, she used the seller's contributions towards her prepaids and towards buy down of the mortgage rate. She even received her earnest money back.

    The 30 year fixed mortgage rate currently being offered as of May 27 is 4.500% via NACA. With these low rates you can afford and qualify for more house than you would be able to if purchased via FHA or conventional.

    I don't work for NACA. I will not receive a kick back for referrals. I just want to tell people about this wonderful program and hope that they will participate.
     
  12. hreid3

    hreid3 Active Member

    I just signed up for a Workshop in NY.

    Are there income restrictions?

    What is the highest mortgage value they offer?

    -- hreid3
     
  13. my2sentz

    my2sentz Well-Known Member

    hreid3

    Just saw your post. No there are no income restrictions.
     
  14. hreid3

    hreid3 Active Member

    In NYC, there are no income restrictions for "PRIORITY AREAS". For "SERVICE AREAS", income restrictions are applied! And the "SERVICE AREAS" are limited also.

    Since I do not want to reside in NYC any longer, I will get a 100% LTV conentional/conforming loan. Or 80/20 loan, seller pay for closing costs. Etc...

    BTW: NACA is a good program:

    Click HERE for Program Details

    --HREID3
    -->IN 600 CLUB-->
     
  15. fdjtwins2

    fdjtwins2 Well-Known Member

    How did your final counseling session go? Did you guys get NACA qualified?

    tks
     
  16. fdjtwins2

    fdjtwins2 Well-Known Member

    my2sentz

    How did you last counseling go? Are u guys qualified thru NACA yet?
     
  17. hreid3

    hreid3 Active Member

    I have a meeting scheduled in early August '03 but I am exploring other options. I want to move out of NYC at any costs.

    I should qualify for NACA because I have savings and my middle credit score is in the 600s and rising weekly thanks to this site.

    Code:
    
            FICO SCORES
          04/2003     06/2003
    =================================
    TU:   549           640  
    EF:   550           633
    EX:   551           590 (Argh!)
    
    I have two collections left to nutcase!  And several lates to goodwill!
    
    
    -hreid3
     
  18. kiddjason

    kiddjason Active Member

    I'm in no way affiliated with or getting commission from this company, but Charles Clark at First Source Mortgage has been AWESOME to work with. I am a high 500s/low 600s person who is just starting to repair my reports. He seems to be able to get anyone any kind of loan. Great credit he says is a piece of cake, even 100% financing. If you'd like to reach him call : 800-356-3249.
    He got me a committment letter within 2 days. He posts a lot on interest.com where people with problem credit seek mortgage advice. A good guy!
     
  19. my2sentz

    my2sentz Well-Known Member

    Counseling session went very well. All paperwork is in order. Thank God.

    Counselor advised that paperwork will be sent to the underwriter for review. Should here from the underwriter within a week. After that, I will be introduced to NACA's real estate agents, receive my qualification letter, and commence looking for my house.
     
  20. fdjtwins2

    fdjtwins2 Well-Known Member

    How is the house hunting coming along? Are you all done?
     

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