USDA loan help

Mar 212011
 

Really want to get into a home.  Wife and I are looking at homes in an USDA approved area.  $ 77000 income which is ok for this area.

 

Credit score:  Equifax 591  Experian 626  Transunion 614.

 

Debt:

 

Car :                    $ 18000                Payment  $ 398

Credit card:        $ 400                                        $ 15             Credit Limit  $ 500

 

Parent Plus

loan:                    $ 6653                                       $ 80

 

Bought the car in Dec and paid a car off in Feb.  Had some late payments with the old car that were only a couple months old.  New car was set up to pay weekly and has been on time since we took the loan out.  Credit card taken out in Dec. and always on time. Parent plus loan taken out Sept 2010 and always on time.

 

We are looking at a Ryland home that is $ 250000.  Builder giving $ 10000 in incentives which can be used for closing costs.  I think I need a 620 credit score to get one of these loans and I’m wondering how long it will take to move my scores above 620.  Also any tips to raise my scores.  Really tired of renting and with housing prices and interest rates so low I’m hoping to get into a home this year.  Builder said it would take 5 months to build.  Any problems building a home with a USDA loan.

local mortgage lender
bycliff1066â„¢

My wife and I have lots of credit card debt that we got building our business this brings our credit scores down But we have lots of equity in our business property there is no mortgage on the business property or equipment. This totals about $ 200,000+ value, we would like a loan of about $ 50,000 value Seems like local lenders do not want to help because we are self employed and our credit score any ideas out there!

My husband and I are buying a builders spec home in Lafayette, IN for $ 115,000. The home is in a new community that qualifies for USDA loans. We have been pre-approved for a FHA mortgage through Bank of America & a local mortgage broker. FHA was the mortgage we were planning on taking until we found this house. Now we are torn between the two and are unsure on which one would benefit us now & in the long run.

Our objective – To use the least amount of money up front as possible, and maintain a total housing payment of less than $ 780 a month. (Interest rates quoted range from 5.125% to 5.5% & Taxes = $ 600yr & Home Ins. = $ 595yr)

I don’t know much about the loans offered by the USDA but what I have learned is…..
*No money needed for a down payment – 100% financing
*Manual Underwriting through approved lenders – It can take up too two weeks to be fully approved
*No Private Mortgage Insurance
*Closing costs can be added to mortgage as long as the home appraises higher than purchase price –
*Higher Closing costs – Guaranteed loan fee for lenders to process loan is 2% of the total purchase price & lenders pass this fee to the buyers at closing

Any help with this is greatly appreciated! =)

Thanks,
Bre

Does anybody know who will finance me a for a mortgage loan after bankruptcy?

Mar 212011
 
mortgage loan finance
byRenegade98

Most people keep telling me I have to wait 2 years before I can get approved for a mortgage loan. Does anyone know a lender that will do it before the 2 years is up?

mortgage loan finance
by Dystopos

What should we do if bank messed up our mortgage loan?

Mar 202011
 
us bank mortgage loan rates
bymarsmet47

We finally found a property that we like, but it turned out to be a detached condo. Our bank gave us a great quote on the mortgage rate that we decided to lock, and two weeks before the closing and approval of the loan we were told that the property was wrong and the original loan won’t fit our property type, and in order to continue we have to pay additional 5% down and also a much higher mortgage rate. At this point we can’t afford the extra 5% and had to decline the loan, but we already paid the home inspection ($ 300) and the mortgage processing fee ($ 600). We will get the fee back with the bank declining our loan but not the home inspection. Our feeling is that the bank has messed up toward the beginning, are we entitled to the reimbursement of the inspection as well? Also now we had a declined loan and credit check on our record, will we get affected for our next mortgage application? Any help will be great.
The realtor did fax the sale contract to the loan officer stating it’s a detached condo. However the he assumed it was a house because of the total amount of mortgage to be financed and it was also detached. I guess there aren’t many detached condo out there…

a lender has offered us a 25% interest loan…isn’t that ususary in the state of CA???

B4 SL hits CR

Mar 162011
 

My college did not ask who I wanted my loan with like my other schools did. Now I have 7 at OSLA and the 2 new ones will probably be Sallie Mae, which I did not choose (got their email today). Do we no longer get a choice? I don’t want to consolidate, but need them all together for when I need them reduced according to income.

Can you help? I don’t think this is reporting correctly.

Mar 122011
 

This is a car loan that I had through Ford Motor Credit. I supposedly had one payment that was 30 days late in August of 2004. I paid off the loan in January of 2007.

 

I don’t think this is reporting correctly, and I’m not sure what to do about it. I know I disputed this a few months ago, but it was pre-myFICO.com and I really didn’t know what I was doing.

 

Here are screen grabs from both my Equifax and Transunion reports. I’ve highlighted pertinent items. Can you help?

 

 

CitiAssist charge off – help?

Mar 112011
 

Apologies for the length!

 

Most of this is very old (2007 – well before I knew about sites like this) but I really need to get this sorted out so…

I had a CitiAssist (private) loan that I screwed up on back in 2007. Citi is reporting to the credit bureaus every month that it was Charged-off/Written off (depending on which report you check) and the amount increases each month.

I went through some pretty bad credit handling back then and I suppose I was just ignoring it. I honestly must have forgotten about it as I did have the good mind to consolidate all of my federal loans later that year and those are fine. However, I take full responsibility.

What I recall is their internal collections department contacting me around Dec 2007 or so for payment (back then was ~$5000). Ultimately they demanded immediate payment or very large monthly payments that I told them was not possible. I was willing to pay $200/mo or whatever but they would not accept it.
Communication ended.

A few months later (so early 2008 or so) I received a certified letter from a collection agency in my state. The name of the agency appeared like a law firm but I am pretty sure it was just a collection agency. From information I read online, I sent a certified letter to them requesting debt validation (not saying it wasn’t mine and not refusing to pay). This may or may not have been the brightest thing to do since, even though it’s a Private loan, I think it goes by different rules (compared to like CC account) since it was a student loan.
Anyhoo, I never heard from them nor Citi again.

 

Knowing I really need to get this resolved just within the last couple of weeks I logged on to their site and according to my online payment history on their website, the last payment I made was on 12/25/2007 but my loan is no longer listed within their system (“You do not currently have any active or fully disbursed loans on our system.” according to their website). I did have to update my Contact Information on their website to view anything so I assume that will trigger something somewhere that I’m still alive and how to contact me which is ok because I’m not trying to hide from them and I do want to pay.

 

Again, it is Citi that is reporting to the CRAs every month that it’s charged off. No CA has reported anything. Since they are actively reporting it as a Charge Off and the amount is increasing (It is reporting at ~$7000 as of today), does this mean it is still in Citi’s hands?

I guess my biggest question is does anyone have any guesses as to what Citi would offer for payment options based on experience? It would be nice to have some idea so I don’t feel like I’m getting hit by a train when I get up the nerve to call them.

Also, from reading other posts I understand that they could still sue me even if I have arranged a payment plan with them and am paying as agreed. In your opinion do you think this is something they are likely to do? If I asked them would they know? Is there some time frame from defaulting on the loan that they just automatically start the process?

And I have dug through every last piece of paper that I have files and cannot locate anything related to this loan, if it matters.

Federal Student Loan Rehab – The Law and You .. please read

Feb 182011
 

there have been many posts recently regarding SL rehab and i think some of you guys are not fully understanding what this means. 

 

in short, after you rehab a loan, the CRAs are required to remove the DEFAULT STATUS ONLY.  see below for the exact language.

 

they will not delete your defaulted loan history.  they will not delete your lates.  they will not delete the tradeline. 

 

what happens on your CR is this…

your loan status field is changed to PAID OR PAYING AS AGREED, the loan balance will be zero, and the loan will be closed and possibly marked TRANSFERRED TO ANOTHER LENDER in the remarks field. 

the closed loan will stay on your report for 7 years from the date it was closed, and the lates will fall off 7 years from the date the late payment was due.

 

on the bright side, you reset the 10 year maximum loan repayment period  and your new loan will stay on your report until paid in full plus 10 years.  so the new loan it will outlast your old loans and if you pay on time every month you will have the positive history for much longer than you will have the negative history.  also, any privileges lost by going into default are restored, and adverse actions such as wage garnishment and collection activities are ceased.

 

please note that i am not taking into account GW adjustments.  it is possible that down the road you may be able to talk the lender of the defaulted loan into deleting the tradeline, but this is NOT required by law.  they are actually required by law to report accurately, and any GW adjustment or ‘mistake’ in your favor is not the norm.  if you have personal experience to the contrary please chime in.  we’d like to know how you did it.

 

 

 

 

20 USC § 1078–6 (C)

Upon the sale or assignment of the loan, the Secretary, guaranty agency or other holder of the loan shall request any consumer reporting agency to which the Secretary, guaranty agency or holder, as applicable, reported the default of the loan, to remove the record of the default from the borrower’s credit history.

 

34 CFR § 682.405   (b)(2)

The guaranty agency must report to all national credit bureaus within 90 days of the date the loan was rehabilitated that the loan is no longer in a default status and that the default is to be removed from the borrower’s credit history.

 

the applicable law for FFEL (stafford) loans is  20 USC § 1078–6, found here http://www.law.cornell.edu/uscode/uscode20/usc_sec_20_00001078—-006-.html

the applicable regulation for FFEL loans is 34 CFR. § 682.405, found here http://law.justia.com/us/cfr/title34/34-3.1.3.1.40.html#34:3.1.3.1.40.4.40.6

the terms for rehabilitation of perkins loans are essentially the same as stafford loans.

Student Loan in default

Feb 152011
 

I have a student loan that is in default. The original loan was with Sallie Mae default loan is now with the Florida Department of Education.  I am currently in the rehabilitation program, I completed the required payments and filled out all the paper work.

 

The problem is I am now waiting for a lender to buy the loan.  I would like to know if anyone has any insight or experience on how long it would take to get the loan sold.

 

Thank you for any information.

unsecured loan to pay off higher rate CC’s

Feb 012011
 

Hi all,

 

I have taken out a 48 month loan at 10 percent to pay off all my credit cards which have rates from 12-23 percent.   They payment on the loan is about half what I pay per month so I will plan on paying that extra money toward the loan amount….

 

I just wanted to get some feedback.. the plan is to pay off all the  cc’s with the loan.. I am hoping that will increase my scores… I have 5 cards…should I close a few accounts? I definitely want to close one that has an annual fee.  Should I use 2 to keep some credit going and show good payments / keep a low 5 percent balance  for CU purposes, or is a zero balance better?

 

Since this is a personal loan and I won’t have any cc debt…that will look better overall correct…

 

I think that covers my questions :)

 

Thank you!

Catherine :smileyhappy:

 Older Entries