Need Loan ASAP

Tina · Joined: 01 Nov 2007 Posts: 3

Hello Everyone,
I posted a question here before, but can't find it to add info.

Anyhow, my mom is in need of a loan to purchase a home. We were looking to get 100% financing, but I guess she didn't qualify anymore because her score was 630, but it has been ran by the broker a few times, so it went down to 615. Mom makes 65k p/yr& my sister was added w/ 43k per & 589 score in order to qualify for a loan. They're both 1st time buyers, over 20 yrs on the job, full doc, w/ 401(k) as assets. The home as already been appraised at $425k & is being sold for $417k. Seller is covering closing costs & is willing to give 3-5% for down payment. Seller has been trying to help as much as possible, but nothing has happened and mom is in jeopardy of losing out on this purchase.

Can anybody help?!

Marty 1stMet · Joined: 20 Sep 2007 Posts: 38 Location: Williamsburg

Tough, but not impossible. Check your PM

uptight mortgage guy · Joined: 23 Nov 2007 Posts: 30 Location: WV

I don't know where you and your Mother live so I guess you could be in a high price market like Hawaii. That being said, I think it is likely your mother really is trying to buy a home to pricey for her credit score and assets.

There are programs available to assist scores such as your Mom and sister but the home is too pricey to qualify unless you are in one of the higher markets.

My suggestion may not be want you want to hear but it is likely better for your Mom and sister to take some time, breathe, work on credit score improvement, and save some money.

I'm sure your Mom is a great lady as well as your sister and it is unfortunate things happened in their lives that caused their credit to suffer. However, with no assets and reserves to speak of besides a 401 K, it seems to me, not getting that home might be the best thing that ever happened to them.

sithburns · Joined: 12 Nov 2007 Posts: 20

I would suggest using a 100% first time home buyer program such as my community, home possible, FHA, or fannie mae flex 100. She should still have options with those credit scores and income.

liverichly · Joined: 10 Feb 2005 Posts: 199 Location: Orange County, CA

Tina wrote: Hello Everyone,
I posted a question here before, but can't find it to add info.

Anyhow, my mom is in need of a loan to purchase a home. We were looking to get 100% financing, but I guess she didn't qualify anymore because her score was 630, but it has been ran by the broker a few times, so it went down to 615. Mom makes 65k p/yr& my sister was added w/ 43k per & 589 score in order to qualify for a loan. They're both 1st time buyers, over 20 yrs on the job, full doc, w/ 401(k) as assets. The home as already been appraised at $425k & is being sold for $417k. Seller is covering closing costs & is willing to give 3-5% for down payment. Seller has been trying to help as much as possible, but nothing has happened and mom is in jeopardy of losing out on this purchase.

Can anybody help?!

Tina, I'd strongly recommend your mom & sister to hold off until their scores are above a 620. Buying a home is not something you ever want to rush into, the interest rate & mortgage insurance difference between a sub-620 and a 620+ score are tremendous... difference of several hundred dollars a month. Believe me, if the seller is so willing to help out, it's a sign of a weak real estate market, where there will be plenty more opportunities to come in the upcoming months. Do not be duped into thinking that this is their "only chance" or be fooled by loan officers who will not show what potential terms they could qualify for by doing a little improvement with their credit. This is probably the biggest financial decision of their life, don't let them blow it.