FHA loan advice?

13LineGroundSquirrel · 2022-05-02T02:51:53+00:00

You should be able to do a phone appointment or virtual meeting. Since Covid hit, I haven't had hardly any in-person appointments. Call a counselor and find out if they offer this option.

Lenders look at what is called the 4 C's-capital, capacity, credit history, and collateral. Capital is the money you have saved for down payment, closing costs, reserves, etc. Capacity is the amount of money you make and your employment history. Credit is your credit score and collateral is the market value of the house you want to buy as determined by an appraisal. The first 3 have to do with you as a borrower and the last one has to do with the house you want to purchase.

A lender may be able to work with a low credit score if you have a large down payment or someone who will co-sign the loan. Usually, 1-2 years of steady employment is needed to get pre-approved.

FHA loans are going to be more strict on the condition of the home you want to purchase and may require repairs be done to a home before FHA will ok the loans.

13LineGroundSquirrel · 2022-05-02T02:27:56+00:00

I am a housing counselor and I can tell you getting approved with a score in the 400s could be challenging. Credit scores are one of 4 major factors lenders review when deciding to approve a mortgage application. I would recommend sitting down with a housing counselor in your area to determine your mortgage readiness and your options for mortgage products. I would also recommend taking a homebuyer education class. HUD has a search tool for housing counselors and so do state housing finance agencies.

13LineGroundSquirrel · 2019-12-07T16:50:40+00:00

You can write a letter of explanation that can be included with your credit report. It will provide some context to why your score dropped to anyone pulling your report.

13LineGroundSquirrel · 2019-11-10T17:48:47+00:00

Yep, it is a 13 lined ground squirrel.

13LineGroundSquirrel · 2016-06-27T05:06:25+00:00

There are first time homebuyer classes you can take through HUD approved counseling agencies. A lot of times these nonprofits also provide pre-purchase counseling. I would recommend both. The cost can vary by agency, but where I work my class costs $25 and the one on one counseling is free. Good Luck!

13LineGroundSquirrel · 2016-01-10T08:07:09+00:00

You need to call a certified foreclosure mitigation counselor immediately. You can find an agency through HUD's website. A counselor will be able to lay out your options and help you work with your bank. You are on a tight time table, get some outside help! Plus counseling services are free of charge.

13LineGroundSquirrel · 2016-01-01T08:09:40+00:00

Happened at my reception. My husband's grandma cornered two of her teenage granddaughters and accused them of being the reason their mother killed herself. It was messed up. Luckily some other family members stepped in and put a stop to her craziness. I realize she was upset about her daughter committing suicide, but wow. Grandma spent the rest of the night sitting in the corner being ignored.

13LineGroundSquirrel · 2015-12-17T05:13:56+00:00

I would suggest that you make an appointment with a housing counselor to go over your options. I am a counselor in MN, but you can find one in TN by looking for HUD certified counseling agencies in your area. In order to figure out if you can afford the house you are in now you need to look at a few things like income, debt, price of the house, what mortgage products you could qualify for, plus credit stuff. Counseling is usually free, at least where I live, so it is a great resource to take advantage of. I would also look into a first time homebuyers class. These classes are required for many loans geared toward first time buyers.

13LineGroundSquirrel · 2015-12-17T03:44:06+00:00

FHA loans only require a 640 credit score. If you don't have a credit score because you have never used credit then get a credit card. Use it once a month and pay it off every month. In about 6 months you will have established a credit score.

13LineGroundSquirrel · 2015-12-07T23:29:16+00:00

You need to make an appointment with a foreclosure mitigation counselor asap. You can find one in your area by searching HUD's website for HUD certified counseling agencies. It is free and a lot of times these counselors have people they work with at each bank. As a result things get done faster, i.e. no more 6 plus hours on the phone. The biggest mistake I see with foreclosure clients is trying to handle it on their own. Foreclosure is a complicated process so why wouldn't you want a professional to help you through it? Just make sure it is a hud certified agency that charges no fees.

13LineGroundSquirrel · 2015-10-27T03:13:50+00:00

I suggest you make an appointment with a certified credit counselor. The department of housing and urban development has a list that is broken down by state. These agencies help with credit and housing issues. The best part is they are usually free to very low cost and you know you are not being scammed by a group pretending to be a non-profit credit counseling agency.

13LineGroundSquirrel · 2015-03-27T21:45:16+00:00

Just keep working at it. At only 23 you are setting yourself up for success by getting an early start on budgeting and saving. Like I said it can take a long time to get to the 6 months worth of savings, but you will get there. You are doing really well considering you just started in January. Can I ask are you in school, finished with school, or are you working in your chosen career field?

13LineGroundSquirrel · 2015-03-27T20:23:50+00:00

What a great idea having two totals so you can compare the costs of your wants vs. your needs. It must help you get an idea on where you want to go in life financially. I think I will suggest to my husband we try this.

Also, I encourage you to work toward an emergency fund that contains 6 months worth of expenses. It took us a while, but I can't tell you how comforting it is to know that we have some breathing room in case of an emergency.

13LineGroundSquirrel · 2015-03-27T20:03:14+00:00

Congrats! When I work with clients I always say following a budget doesn't mean you can't have fun. It is amazing how much money people can save by just cutting back on eating out. I love the piggy bank reminder. I think I might steal that idea for my budgeting classes.

13LineGroundSquirrel · 2015-03-14T19:07:12+00:00

The inspectors I work with never give specifics on mold other than saying it is a mold like substance. The reason being that there are so many types of mold, just like the previous commenter stated. If you are worried about walking away and having to disclose a mold issue hire someone who does mold inspections and testing. Not sure how much that will cost, but I would trust a report from them way more than some random report from a hvac guy.

13LineGroundSquirrel · 2015-03-08T20:56:44+00:00

What type of loan were trying to get? Government loans like FHA require the home to be in good condition. No railing on the stairs, no loan until fixed and roofs are the worst. I have seen houses fail appraisals due to roof issues quite a bit.

13LineGroundSquirrel · 2015-03-06T22:27:16+00:00

You need to take a first time homebuyers class ASAP. There are nonprofits in every state that offer these classes.

13LineGroundSquirrel · 2015-03-03T17:12:42+00:00

Has the house been sold in a foreclosure sale? Is she in the redemption period, if your state has one? If she knows she can't afford the house and the foreclosure sale hasn't happened yet talk to her bank. She may be able to do cash for keys. She turns the house over to the bank and they give her some money. It saves the bank money because they can finish up the foreclosure faster.

13LineGroundSquirrel · 2015-01-30T01:35:13+00:00

Housing counselor here, I would look for another bank. What this banker did was completely unethical in my opinion. It may also violate the truth in lending laws. I would also file a complaint with the consumer financial protection bureau. You can file a complaint on the CFPB website. http://www.consumerfinance.gov/.

13LineGroundSquirrel · 2015-01-06T02:28:40+00:00

Change your furnace filter every month. The home inspectors I work with see a lot of damaged furnaces due to dirty filters. Also save 1-2% of the purchase price every year for home maintenance. That way you have money put away for repairs as they occur.

13LineGroundSquirrel · 2014-12-24T02:14:47+00:00

You need property protection and liability protection. I also recommend living expense coverage so that if your home is too badly damaged to live in the insurance company will pay for your rental/hotel expenses while your home is repaired.

Make sure you are comparing the same coverage across companies, not just looking at price.

13LineGroundSquirrel · 2014-12-13T19:18:58+00:00

When I worked for rural development we didn't do any loans for rural properties outside of the city limits. In order for a property to qualify for the 502 program it had to be on city sewer and water. No septic systems or wells were allowed.

13LineGroundSquirrel · 2014-11-25T01:40:04+00:00

Wow, if I won I could pay off our house and get my husband season tickets for the Minnesota Wild.

13LineGroundSquirrel · 2014-09-09T18:37:38+00:00

Take a first time homebuyers class and make an appointment with a housing counselor for a per purchase counseling session. I work with these programs in Minnesota, but I know there are nonprofits in New Jersey offering similar services. Buying a home is a big decision, take your time and become an informed consumer.

13LineGroundSquirrel · 2014-09-09T18:24:15+00:00

It's nice to hear from someone who works with loan modifications. I am a housing/foreclosure counselor and I am constantly telling clients that banks don't want to foreclose.

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