[jill.costello]

I'll admit, I'm really bad at keeping up with the credit-crisis news. I don't know much about who's bailing out who, who bought who, and who's about to fold, etc.

But I really want to buy a place in the next 3-4 months, and don't even want to start hoping for a miracle if I'm nuts!

Is anybody still giving small mortgages (under $200k) to poor folks with iffy credit??? My credit isn't awful; I don't have any bankruptcy and I only have 1-2 late pays in the last 6 months, but I have a couple OLD charge-offs from way back, and a higher-than-recommended debt-credit ratio.

What I DO have going for me is that my latest mortgage was on-time, everytime for 2 years and is now paid-in-full.(sold the place for profit)

I also have my Veteran's Home Loan Guarantee Certificate; meaning the VA will guarantee the first 25% or $50,000. of a mortgage for me. (IF I qualify for that said mortgage)

I am downsizing, so just looking for a little place on 3-4 acres in the $80,000-$130,000 range (my last mortgage was for $110,000.00 and I have the same income as then).

Am I crazy? Are they only lending to people with 750+ credit now?? Or is there still a niche somewhere that still gives "sub-prime" loans???

 

[jill.costello]

Oh, I just checked my credit score; it is 601. I know that's not great, but it isn't the most horrid, either....

 

[big rockpile]

Got a Guy calling about every day wanting us to take out a mortgage that I don't feel we could pay.Just thinking this is exactly how we got in this mess.

big rockpile

 

[DAVID In Wisconsin]

Even with a very large down payment, you'll have a tough time finding a lender with a credit score of 601. A mortgage broker can tell you what to do now to get things in better shape for future house buying. I wish you luck.

 

[sancraft]

They are looking for over 700 now. I believe if you put down 25% of the cost, you can get a no income verification/no credit check loan, but at a higher interest rate. I would talk to a lender and ask them to evaluate and tell you what you need to do to bring your score up. Low credit score and high debt ratio usually equals no loan. Good luck to you.

 

[jill.costello]

I just did some detailed investigating, and it turns out my old charge-offs will be removed 1/09, 2/09, and 4/09 (the 7-yrs will be over on those dates)

So, I'd better just cool my jets for a few more months; keep paying down my existing debt, and BE ON TIME, as I have been diligently doing.

Also, I just found out I get a 5.8% raise Jan 1st, also, so fingers crossed, it looks like 2009 will be my year!

 

[Guest]

We have an average credit score of 700 and we've pre-qualified for an $180,000 loan at 6.5%.

 

[deaconjim]

We will be closing on Monday. If I remember correctly, my score was 798.

 

[WindowOrMirror]

almost 4 years ago we were at 660 and got a fixed interest rate that was 'excellent' on a 30-year with 20% down. I am unsure if we would get it today (at the same credit score)

R

 

[Wisconsin Ann]

Even if you don't qualify for a loan from a bank, and you find that "perfect" place now....Since it's a buyer's market right now, I'd suggest asking the owner about land contract. :shrug: What's it going to hurt to ask? Have a downpayment ready, (10% minimum) and ask. My MIL has done that for people...she renovates houses as her "retirement" fun She has done a "rent to own" or "land contract" a couple of times now.

As to whether you can get a loan with 601...probably not. Even our local bank is looking at over 700 and THEN you have to have a stiff downpayment. Rates may be down, but only if you have good credit. and, well, no offence, but that's how it should be, don't you think?

 

[Beaners]

Our credit is at the lower end of the "good" section, but it is in the range that is considered "good". There are some negatives on there, but we have made a lot of progress to improve it.

We got a mortgage for $70,000 in the beginning of August. I don't know if that's recent enough to be a great indicator of who can get a loan now though. We were approved for about three times that amount. We have a fixed rate, 20 year loan.

I'd say keep doing what you're doing for now, especially with all of that stuff coming off your credit report in a few months.

Kayleigh

 

[jill.costello]

<sigh> Guess I'll keep looking for a rental; it's just so hard to find one with enough acres to house the critters. And I HATE the idea of all that money soent on rent not going into equity (well, MY equity!!)

Lots of homes with land available, just not many owners/landlords willing to let me pound some t-post yards for the goats and a tape fence for the horses.

Anyone have success using those rental-locator services?? I talked to one on the phone today, and he assured me he coulf find me a farm-animal-frindly farmette for my price range, but of course, there's a $175.00 fee for the service...

 

[fordy]

...............I'm looking for a small tract of around 5 acres or so in NM , the relator I visited with is going to try and find a private party that might be interested in providing a loan . I might be willing to pay a higher rate of between 8 or 9 percent , maybe even 10 if necessary . These things can be worked out if we're patient and work with the RE folks . , fordy

 

[PAcountry]

We got one this past August its an FHA and our credit is 625 I heard that they got tighter since we got ours though

 

[pickapeppa]

We haven't tried yet, as no mortgage brokers have returned my calls. But our realtor said they're looking for a debt/income ratio of 28% or less (with the new mortgage), and 20% down, credit score over 700, better if 750 and up. Good luck to you. Didn't know you could find a place that inexpensive in MD.

:rock:

 

[jill.costello]

I'm on the Eastern Shore of Maryland, east across the Chesapeake. There are still areas around this side of the bay that you can find what I'm looking for in my price range; mostly on the southern end of the penninsula, or even further east near the Delaware line. I'm actually looking in Delaware more-so than Maryland because they have no taxes there on tangibles and the property tax is really low, also.

 

[TedH71]

Jill,

Thought you used to live in East Texas? Sold the land/house?

 

[pickapeppa]

I'm on the Eastern Shore of Maryland, east across the Chesapeake. There are still areas around this side of the bay that you can find what I'm looking for in my price range; mostly on the southern end of the penninsula, or even further east near the Delaware line. I'm actually looking in Delaware more-so than Maryland because they have no taxes there on tangibles and the property tax is really low, also.

Is that the area where the wild ponies come up to you on the beach? We were a hair away from visiting there a few years back. Next time we're out that way (have family near Baltimore), we'll head down that side of MD to see what's out there.

 

[jill.costello]

Jill,

Thought you used to live in East Texas? Sold the land/house?

Yup, we sure did! Made a profit, too! (only covered the cost of the cross-country move, though...) Just moved out here in May and are renting a farm across from my parent's place. Problem is, the standard of living/cost of things out here is SO much higher than Texas was that we are struggling with the rent/utilities/grocery/hay bills.

Which is why I just re-homed 3 of my best horses and am getting out of the breeding business altogether for at least a couple of years.

So, now all I have is 4 "keeper" horses, 2 young sale horses, 3 goats, 4 dogs, and 7 chickens. Still quite a crew, I know, but hopefully the 2 sale horses will sell before spring and then I will be at less than 50% of what my hay/grain/shoer/vaccine/vet bills were in the past (thank goodness!!!!!)

Also won't have to worry about putting funds aside for spring breeding and all the vet visits/extras that go along with that.

I haven't actually worked out the exact dollar amounts, but if I can reduce my animal-related expenses by 60%, and reduce my rent from the $1200./mo I pay now down to about $775. or so, (and by living in a smaller home, pay less in heating/cooling), then by rights I *should* be able to put about $800.00/month away into some type of fund or savings for a future down payment.

If I had $20,000. socked away at the end of 2 years, and my credit improves the way I anticipate, then I should be well set-up to buy the RIGHT property in 2011 ......of course, life always seems to get in the way.....

 

[jill.costello]

Is that the area where the wild ponies come up to you on the beach? We were a hair away from visiting there a few years back. Next time we're out that way (have family near Baltimore), we'll head down that side of MD to see what's out there.

You are quite right! That's down on the southern end of the penninsula, The Chincoteague ponies!

There is still beautiful, rolling farmland available in the areas I described. Sortof east of Denton,MD into Delaware (not too close to Dover; that's a bit pricey now), but south of Denton area into Cambridge,MD and further down into Salisbury,MD and Pokomoke City,MD.