Title: Buying a house in the USA.
Post by: ralphm on July 20, 2002, 16:14:38
Post by: ralphm on July 20, 2002, 16:14:38
i have seen ads for programs that help the first time home buyer. i don't know if they are worthwhile but maybe real estate loan people could help you find info. seems like most people in the loan racket are helpful if they think you can make payments- they don't mind fudging facts to help your loan go through.
Title: Buying a house in the USA.
Post by: Mobius on July 20, 2002, 22:39:21
Post by: Mobius on July 20, 2002, 22:39:21
G'day Cainam
Although I'm in Australia, I used this trick that I read in one of those how to be a millionaire type books, anyway the author was an American so I'm sure this would work the same over there.
1) Apply to your existing bank to get a small loan, the minimum loan they have. Over here for me it was $500.00. You don't use the money for anything, you just hold on to it for about a month, then pay it back in full, with the bit of interest you would have accrued for the loan.
2) You do it all over again with a $1000 loan, hold on for a month, pay back in full plus interest.
I only had to do this 3 times & the banks, mortgage lenders & margin lenders thought I was a champion & would throw loans at me . At present I don't have full time work so I wont take on any other loans, but since you have work, that is all you need my friend to get you back on the right track.
Good luck anyway
Mobius
Although I'm in Australia, I used this trick that I read in one of those how to be a millionaire type books, anyway the author was an American so I'm sure this would work the same over there.
1) Apply to your existing bank to get a small loan, the minimum loan they have. Over here for me it was $500.00. You don't use the money for anything, you just hold on to it for about a month, then pay it back in full, with the bit of interest you would have accrued for the loan.
2) You do it all over again with a $1000 loan, hold on for a month, pay back in full plus interest.
I only had to do this 3 times & the banks, mortgage lenders & margin lenders thought I was a champion & would throw loans at me . At present I don't have full time work so I wont take on any other loans, but since you have work, that is all you need my friend to get you back on the right track.
Good luck anyway
Mobius
Title: Buying a house in the USA.
Post by: Kristen on July 21, 2002, 20:15:02
Post by: Kristen on July 21, 2002, 20:15:02
Hi Cainam -
Lenders are going to look at your debt to income ratio, your credit rating, the number of years you've been employed at your most current job, the amount you have available for a down payment on the loan, other equity... (I'm sure you know this : ).... but, even if your credit sucks, there are some lenders who are willing to create mortgage packages if they can make a decent margin - scenarios for credit-risky loans can include exorbitant unfixed interest rates, and can include balloon payments - in any event, even if your credit rating doesn't suck too much, over the life of the loan, you're going to end up paying out in interest many times the total market value of the home if you follow the payment structure - and that interest would be up front.... but, hey - you'd have a house. Something to consider is starting with a small sweat-equity house - one that you can increase the value of your home (and therefore increase your equity) with improvements you can do yourself. If you can find a fixer-upper in a fair neighborhood (look at values of homes similar to the one you're contemplating buying closeby) and then over a period of five years bring the value of the house up to a significant percentage over the purchase price, and if you have a mortgage loan that doesn't penalize you for payoff after 5 years into the loan for example, you can turn around and sell it, pay off your other outstanding debt, maybe have a downpayment for another home and you'll be in a better bargaining position. Once having actually taken on a mortgage, there are programs available (quick pay programs) that can reduce the life of your loan and therefore the interest payed out, to a significant degree.
The bottom line is to clean up your credit first as much as possible. Mortgage lenders will tell you what you need to do. If you haven't already, get a copy of your credit report.... don't let the mortgage lenders do the inquiry because that shows up as an inquiry on your credit record, which lowers your status if done too many times. Make sure that what is in the credit report is correct. There are several credit reporting agencies and they may not all have the same information. If there are any late payments noted that are not late (creditors make mistakes all the time) then give those creditors a call and try to get them to correct any mistakes in their records. If you have legitimate late payments and fees, pay it all up. It takes time, but its worth it.
Credit counseling services that negotiate with your creditors for lower interest rates also look bad on your credit report.
Good luck!
Kristen
Lenders are going to look at your debt to income ratio, your credit rating, the number of years you've been employed at your most current job, the amount you have available for a down payment on the loan, other equity... (I'm sure you know this : ).... but, even if your credit sucks, there are some lenders who are willing to create mortgage packages if they can make a decent margin - scenarios for credit-risky loans can include exorbitant unfixed interest rates, and can include balloon payments - in any event, even if your credit rating doesn't suck too much, over the life of the loan, you're going to end up paying out in interest many times the total market value of the home if you follow the payment structure - and that interest would be up front.... but, hey - you'd have a house. Something to consider is starting with a small sweat-equity house - one that you can increase the value of your home (and therefore increase your equity) with improvements you can do yourself. If you can find a fixer-upper in a fair neighborhood (look at values of homes similar to the one you're contemplating buying closeby) and then over a period of five years bring the value of the house up to a significant percentage over the purchase price, and if you have a mortgage loan that doesn't penalize you for payoff after 5 years into the loan for example, you can turn around and sell it, pay off your other outstanding debt, maybe have a downpayment for another home and you'll be in a better bargaining position. Once having actually taken on a mortgage, there are programs available (quick pay programs) that can reduce the life of your loan and therefore the interest payed out, to a significant degree.
The bottom line is to clean up your credit first as much as possible. Mortgage lenders will tell you what you need to do. If you haven't already, get a copy of your credit report.... don't let the mortgage lenders do the inquiry because that shows up as an inquiry on your credit record, which lowers your status if done too many times. Make sure that what is in the credit report is correct. There are several credit reporting agencies and they may not all have the same information. If there are any late payments noted that are not late (creditors make mistakes all the time) then give those creditors a call and try to get them to correct any mistakes in their records. If you have legitimate late payments and fees, pay it all up. It takes time, but its worth it.
Credit counseling services that negotiate with your creditors for lower interest rates also look bad on your credit report.
Good luck!
Kristen
Title: Buying a house in the USA.
Post by: alpha on July 22, 2002, 20:34:19
Post by: alpha on July 22, 2002, 20:34:19
Mobius,thats a great tip and I wont take it lightly.My credit is getting worst as I type this ![]("http://www.astralpulse.com/forums/images/icon_Smile_big.gif")
-------------------------------
"WAKE UP!WAKEUP!WAKE UP AND LOOK AROUND YOU!WERE LOST IN SPACE AND THE TIME IS OUR HOME"
-------------------------------
-------------------------------
"WAKE UP!WAKEUP!WAKE UP AND LOOK AROUND YOU!WERE LOST IN SPACE AND THE TIME IS OUR HOME"
-------------------------------
Title: Buying a house in the USA.
Post by: lucid dancer on July 24, 2002, 00:00:48
Post by: lucid dancer on July 24, 2002, 00:00:48
cainam, I'm in Mesa, right next door! I'm 24, and I also have terrible credit. I'm sitting in this house that I just moved into about five days ago. All you have to do is save up a couple thousand dollars. There's a site called noquals.com. Check it out. It's a rent to own kind of thing. You have to come up with a certain amount of money, a down payment. Then you have a monthly payment after that. I payed $4000 up front. After two and a half years, the house is mine. Write back, and let us know how your luck is going!
Title: Buying a house in the USA.
Post by: Tisha on July 26, 2002, 12:12:51
Post by: Tisha on July 26, 2002, 12:12:51
gee, that's cool!
One more thing: everyone, when it comes to $$$$$ always make sure that the company/program you are dealing with is reputable. It seems there are a lot of cons out there trying to make poor people poorer.
The U.S. government has programs to help lower-income people buy homes. Try the FHA . . .
You could also bid on a forclosure.
Many cities have "anti-blight" programs with fixer-upper deals where you buy a house for cheap as long as you promise to fix it up within X amount of time. These homes tend to have serious problems requiring real contstruction, but if you are a handyman type this is a good way to go . . .
tisha
One more thing: everyone, when it comes to $$$$$ always make sure that the company/program you are dealing with is reputable. It seems there are a lot of cons out there trying to make poor people poorer.
The U.S. government has programs to help lower-income people buy homes. Try the FHA . . .
You could also bid on a forclosure.
Many cities have "anti-blight" programs with fixer-upper deals where you buy a house for cheap as long as you promise to fix it up within X amount of time. These homes tend to have serious problems requiring real contstruction, but if you are a handyman type this is a good way to go . . .
tisha
Title: Buying a house in the USA.
Post by: cainam_nazier on July 20, 2002, 04:51:36
Post by: cainam_nazier on July 20, 2002, 04:51:36
I have a question for all the homeowners in the states. Do you have any advise for a person who has seriously messed up credit and is looking to possibly purchase a house?
I have no clue where to begin!
I'm 25. I've been at my job for about 5 years. I make about 30,000 before taxes. I have seriously messed up credit. But I have been working hard on fixing it for the past 2 years. I don't have any money saved up at all but I am starting to do that also. And if it helps I live in AZ in the Phoenix area.
Any advise would be greatly welcomed. Thanx in advance.
David Rogalski
cainam_nazier@hotmail.com
I am he who walks in the light but is masked by the shadows.
I have no clue where to begin!
I'm 25. I've been at my job for about 5 years. I make about 30,000 before taxes. I have seriously messed up credit. But I have been working hard on fixing it for the past 2 years. I don't have any money saved up at all but I am starting to do that also. And if it helps I live in AZ in the Phoenix area.
Any advise would be greatly welcomed. Thanx in advance.
David Rogalski
cainam_nazier@hotmail.com
I am he who walks in the light but is masked by the shadows.