Getting a mortgage

joedirt · 02-07-2008, 09:12 PM

Just looking for opinions but does anyone think it is going to get harder to get financing for a first time buyer with "repaired" credit??

Hedwig · 02-07-2008, 09:34 PM

I think a lot of states will still have programs for first-time buyers. It may be harder, depends on the state and the situation.

But I think it will be harder for people who aren't first-time homebuyers or for refinancing.

jlynn · 02-07-2008, 10:19 PM

How would one know that they are repaired?

joedirt · 02-07-2008, 11:17 PM

jlynn...good question. I still have a few baddies left to clean up but my fico is way low because I have only 1 credit line in the last 10 years. Im thinking about a credit card but I know it will lower the fico even more.

Hedwig · 02-07-2008, 11:21 PM

It will lower the FICO in the short run. In the long run, it will help.

You need to get some history built up, while keeping your utilization low. That will help your scores over the long run.

Enigma · 02-08-2008, 12:16 AM

I am hearing with a middle score of 640 and 3 percent down, FHA is writing.

apexcrsrvc · 02-08-2008, 03:07 AM

You may be able to do a couple things by adding some "aged" lines.

centex · 02-08-2008, 09:46 AM

Quote:

Originally Posted by jlynn

How would one know that they are repaired?

Take for example the person who has reports that show they have been on file since 1984, but who has nothing that was opened prior to 2003. While it is a given that SOME items would have aged off given the changes in the retail environment over the years (many having sold off portfolios that were previously handled in-house), it raises a red flag that in a file more than 20 years old there were no tradelines older than 5 years of age.

As to the original question, those that actually have the capacity to afford a mortgage should still be able to get one written. Those who will have problems are the very source in many instances of the current crisis- the mortgage never should have been written in the first place. It would not surprise me to see a return to actual requirements of a down payment...

Hedwig · 02-08-2008, 01:49 PM

What a concept--only buy something you can afford.

It's amazing to me how many people have asked me if I'm having any problems from the recent rash of foreclosures. I asked them why I should--I've always had a fixed-rate loan on a house I can afford to pay for. My LTV is around 50%, maybe less.

If more people had down payments and waited until they could afford a house to buy it, we wouldn't be in this predicament.