RE: thanks, finally... Roni, Since the lender has acknowledged their error, can they somehow apply a retroactive deferment and remove the collections notation from your report? I always thought deferments were retroactive anyway, so if it took them a year to fix this mess any deferment granted would have immediately brought your account forward and out of collections. They've already been paid, but your previous account with them should reflect that you were not delinquent on your loans. As far a getting a mortgage, it's harder to get financed for a car with damaged credit than to get a mortgage!! I know FHA guidelines are relaxed and its possible to find a lender to underwrite the loan to fit your credit situation. If your defaulted loans are now paid it shouldn't be a problem,and if your consolidated loans are still in deferment, they won't factor into your debt-to-income ratio. I worked with a lender earlier this year that was willing to give me an FHA loan with a low downpayment--remember I have a bankruptcy,four satisfied judgments, and made about a quarter of what you earn, so you shouldn't wouldn't worry too much!! I decided to hold off on buying a house in favor of returning to grad school, but i can give you the web address of the lender. I'm not sure they do business in your state, but they may be able to help you.
RE: There Is Always Hope Girl, don't stress about those loans! If the defaulted ones are paid, you'll do fine. Believe me, some bank will be willing to give you a mortgage at a dececent rate.
Thanks Carrot. That makes me feel a little better. I just finished reading a post that said that I couldnot get a loan until my student loans were paid. That will not be for another 20-30 years. My loans are consolidated but not in deferment. I choose to just make payments on the loans since I am working. Not financial hardship eligible. But my payments are not that high $500/mo. As for the lender doing a retroactive deferment, they wont. The ombudsmans office of the dept of ed has been working with me since may2000 on this matter. Yes, they admit that they didnot do it right, but refuse to buy back the loans from the consolidator etc. The dept of ed says that they cannot make them do anything, just ask them to be fair. I stopped fighting that battle for a few months because the agent at the dept of ed who was assigned my case, left the dept of ed. What a bummer. My new agent called me just Friday. So I have to start all over with this guy. But I have a letter from the lender admitting their mistake, but stilling saying that they cant verse a default. I also have a letter from the dept of ed stating the results of their investigation so far. They got the phone records of the lender which showed the # of phone calls I made to them about them not processing my deferment papers ontime. I have a copy of my deferment and the certified mail receipt that I used to mail the damn thing. Get this, they denied my appliccation saying that they couldnot read the signature of the director of my program. Aint that stupid. They claim that they called the program. Bullsh*t. Anyway, I hope you are right Carrot. I could go on about this forever. One thing that this whole thing taught me is that people dont give a rats ass about you in the real world. Thanks to your post, I will pick my head back up and try to push on in the credit building war.
On Second Thoughtâ?¦ Roni: Wait a minuteâ?¦Perhaps I hadnâ??t read your situation correctly. Paid collection accounts related rehabbed student loans are fine, so long as the exposure doesnâ??t push your debt-to-income ratio out of whack. I reread your reply post after you stated being pre-qualified because thatâ??s generally a good sign. Silly me, sorry to stress you out but itâ??s not as bad as I thought. FHA is your best bet because your income is certainly strong enough to support both student loans and the house payment. Without impounds your payment is approximately $735 based on $100 grand, maybe as much as $950 or so with impounds. Clearly you afford this, aside from a healthy down. Conventional financing is going to kill you with interest, whereas FHA will be easier to qualify considering your credit history. The Feds will definitely appreciate your income level, which should rightly account for something. Now if the dental practice is yours than this may skew my assessments a bit, but nothing solid tax returns couldnâ??t help address. Cheer up kiddo; youâ??re closer to a mortgage than you think. Take a look at the MBAAâ??s website and run a financial analysis and plan on yourself (http://www.mbaa.org/consumer), which will help answer more concerns. Bottom-line is that, youâ??re in much better shape than I originally stated. Keep The Faith, Anthony Villaseñor CreditDefenses.com
I am glad I read this before I went over to my boyfriend house. I was in a real sour mood. I don't own a dental practice yet. I am holding off on that because of my concerns with a mortgage. When I open my own practice, I will probably do a slow buyout or lease equipment & an office. But that is a whole other issue. In other words, I will take it slow. You are probably right about the interest rate with conventional loans and I checked out the FHA website and felt alot better. Thanks for taking the time to reread my post and offer your opinion.
Youâ??ll Get A Mortgage Roni: Actually, I too am glad I read your response because after discovering my error I thoughâ?¦ What was I thinking? (Ever had that happen?) Anyway, cheer up, youâ??re in much better shape for a mortgage than you think â?? truly. Keep The Faith, Anthony Villaseñor CreditDefenses.com
Income limit on FHA? Isn't there a maximum income that is allowed for an FHA loan? I thought a friend told me that he couldn't get an FHA because of his high income, and I'm sure its below $80,000.
