I've paid off all of my old debts except for the repo which is $5800. I really can't see paying all that money and I don't even get the car back which sucked anyways. Any info on programs for first time home buyers with 1 blemish on credit report.
2007-06-04 06:45:45 · 6 answers · asked by mimi1980 3 in Business & Finance ➔ Renting & Real Estate
If you don't pay it off, it will probably be on your report for at least 7 years. (depending on how the company reports, it may be longer) This is a pretty big blemish and you should probably talk to a mortgage company to find out for sure. If they do finance you, be prepared to pay higher interest rates.
2007-06-04 06:53:42 · answer #1 · answered by New rider-- again 3 · 0⤊ 0⤋
That's a pretty big deal since for a first time home buyer, the one tradeline with the heaviest weight is your auto installment. That gives mortgage lenders a good guage as to how you will pay your mortgage debt.
You may be able to get a loan with a higher interest rate from a sub-prime lender, but that type of lending is going away. It also depends on how much money you are able to put down toward your home, the more the better.
The best thing to do is to pay off that repo debt, keep 4 tradelines open and active (pay them down every month but you want them to keep reporting to show that you are capable of handing debt) and save money to put down.
I know that's probably not the answer that you wanted to hear, sorry!
2007-06-04 07:17:33 · answer #2 · answered by pajamas 1 · 0⤊ 0⤋
You sound exactly like me and my husband - we're in the same credit score and income range. Housing prices sound about the same in our area too - where do you live? We're in Spokane, WA. We were just barely able to get a mortgage for $0 down and $91,000 for a 1942 house that is 3 bdrm 1 bth waterfront property. We feel like we did pretty good! $157,900 is a bit too high of debt-to-income ratio for you though, even with the bigger down payment. But just barely. Maybe if you wait and improve your credit just a tad - like a year or two more - or find an older but nicely cared for neighborhood you should definitely be able to find a house that is just $20,000 or so less... wait a few years for home prices to go up, then move to your dream subdivision. That is what I would do. Buy in a neighborhood where your home value is sure to go up in the next 5 years. Sounds like you're on the right path.
2016-05-21 02:11:25 · answer #3 · answered by ? 3 · 0⤊ 0⤋
The answer is more accurately discovered by contacting a lender or loan agent. Almost everyone can qualify for a loan. You want to know how 'good' a loan you can qualify for, and no one in this forum can give a better answer than someone in the business who has access to your complete credit report. Call at least 3 reputable lenders - conventional lenders.
2007-06-04 06:50:42 · answer #4 · answered by nothing 6 · 0⤊ 0⤋
You say you paid off your old debts, where they late? where they also in collection? etc. If so these (yes even if you paid them off) along with the repo will be on your credit score for 7 years, if that is indeed the fact then you have more than one blemish on your record. More information is needed here
2007-06-04 12:05:08 · answer #5 · answered by Pengy 7 · 0⤊ 0⤋
This will definitely hurt your overall credit score. You won't be borrowing from a conventional lender, either. There's plenty of options available to you, it will just cost you more..
2007-06-04 06:57:00 · answer #6 · answered by Donald C 2 · 0⤊ 0⤋