All: Back in late January, I pre-qualified for a home mortgage with a bank. I did not qualify for the 80/20 program with no mortgage insurance they were offering because of my score. They weren't too bad, but they did not meet the criteria. They were 642, 671, 701. I was very disappointed because I really wanted to get a mortgage but I had no money to put down so I was hoping for a 100% loan. I searched th web and came across www.interest.com. I posted a message there and was referred to this site. After reading a couple of messages on this forum, I knew I was going to be all right! Before I started my credit repair process, I had 6 90+ days late on TU, 6 90+ days late on EXP, 1 90+ days late on EQ, 1 collection account on all 3 bureaus. That's a total of 16 derogs!!!!!! Within a month or so, I was able to get at least a dozen of the derogs REMOVED!!!! Then, I followed up on my goodwill and some more disputes... and WHAM!!!!!!! 3 months after I started my credit repair my reports are SPOTLESS!!!!! The only things that I don't like now are my inquiries 2, 3, 2 within last six months, but I can live with that. Anyway, my scores are now 726, 735, and 755. Guess what I did? I got pre-qualified for the loan again and qualified for the 80/20 loan program with 5.625% for the first 80 and 6.375& for the other 20. For me, that is a very good rate! Another good thing is that I can qualify for over $300,000 if I wanted to because my DTI ratio is only 20% +. I am hoping to close on my house at the end of the month with almost to $0 out-of-pocket expenses except for the taxes, prepaids, etc. This is totally amazing! Who would have thought my middle score would jump 64 points in 3 months? It would have been higher if I paid down my two cards but they're less than 25% utilization anyway so I will keep the cash for now as reserve. THANK YOU CREDIT NETTERS!!!!!!!!! -GC
I think you should be able to get 100% financing with that DTI and those scores. Have you tried? Nevertheless, that kind of improvement deserves a hand clap (((((clapping))))). Congratulations on the success!!!!!!!!!!
Congratulations, gc ! So the difference between 6.375% and 5.625% on the 20 is cheaper than paying PMI ?
Thanks guys, but let's use this example for a $168,000 loan. Option 1 - 80/20 program 80% of $168,000 is $134,400 @ 5.625% is $774 20% of $168,000 is $33,600 @ 6.375% is $165 Total: $939 Option 2 - 100% with no MI $168,000 @ 5.5% is $954 $168,000 @ 5.4% is $943 $168,000 @ 5.36% is $939 So, for me to get a better deal than the 80/20 program, I have to get a 5.36% interest rate which I don't think I can get. I was quoted 6.875% on the 100% with no MI and that is $1104. That's why I went ahead with the 80/20 program. What do you think? I've read that having 80/20 or piggy back loan usually hurts the credit score big time. Is this true? How bad? Any suggestion? thanks! -GC
Yes I tried 100% with MI. For a $168,000 loan at 5.5% the monthly will be $954 plus MI which is about $100 a month. So, that would be at least $125 more. What do you think?
I think you done good ! Just wanted to eek out that last case ! Just for s**ts and giggles, that $100 MI per month, equates to boosting the 5.5%, APRwise, to 6.43 % ! (ahem.... that assumes the $100 per month continues 360 mo., which it wouldn't !)
Hi All! It's been almost a week since I posted about the rates I received for my mortgage. Guess what? We were able to negotiate our rates to go down... we locked the rates at 5.5% on the first 80% of the loan and the other 20% is at 5.8% which is a great deal for me! =)
Congratulations! That is fantastic! Now, the test for you is the same as it is for me... Keeping it clean!
Good Job! It took me nine months to clean my report up. I just got rid of my last (original) derog last week. My start count was 23 badies total on all three reports. Murphy's Law: A new $29 collection popped up on my EX report 30 days ago. It was for a pre-paid pager service that they had no right to bill me for. It will probably take another 60 days to get of it.
