im trying to buy a house i need pmi insurance but with a bk not quite 2 years old and a credit score of 648 were can i get it from
Total Comments: 4
Posted: Thu Oct 21, 2010 03:02 am Post Subject:
Even though this isn't a credit forum, let's play.
You pretty much can't get any kind of conventional mortgage with a FICO around 648. Due to the tightening of the mortgage market and new federal guidelines imposed on lenders regarding their ability to sell their paper, the lenders are now actually requiring borrowers to have a decent credit score, an actual taxable income that can be proved and money into the house with a down payment.
The old days are seriously gone, as well they should be. Any mortgage lender that didn't see the collapse coming was either seriously impaired mentally or just decided that the money to be had was just too great to ignore. I think it's the last one there. Just a few years ago, you could have a FICO of 500 and get 100% money on your house with a stated income application. Absolutely freakin' ridiculous.
Nowadays, you're gonna need a FICO of at least around 680 or so, ideally something above 720. You'll need a down and closing costs, but in this market you can typically have the seller pay the closing costs, especially if they want out of the house badly. You'll have to meet the debt to income ratios and prove income, normally with your last two years of tax returns.
You're not too far off from the 680 score that you'd need. There are ways to improve your score easily with some effort on your part. If you want to learn how, I recommend the following site:
http://www.creditboards.com/mambo/
It's an excellent board and has a ton of info on credit of all types. I've been a member there for more than 8 years and vouch for their site, if that means anything.
You do have a couple of options... maybe. Have you thought about possible a lease-to-own option or an owner-carried contract? Owner-carried usually takes about 20% down. Lease-to-own works for many people and there are more and more coming on the market as people look to do SOMETHING with their properties they can't unload.
You're right to be looking now... it's definitely a buyer's market all over the country. In my area, it's a freakin' fire sale and will be for some time to come. I'm lucky in that I bought well and have a fixed mortgage with a great rate, I actually have equity in my house! Scary, huh?
You can get there, too. Work on your credit, you only need another 40 points or so, save your money and prepare for the document trail.
InsTeacher 8)
Posted: Thu Oct 21, 2010 07:35 am Post Subject:
You pretty much can't get any kind of conventional mortgage with a FICO around 648.
FHA loans are still a possibility with such a FICO score as this. The PMI/MIP will be automatically added to the loan by the lender, no need to go searching for it yourself.
Personally, having had the FHA experience about 35 years ago, I would never want it again. It was a pain in the a** then, and it's just a bigger one today. Obama may get most of the blame today, but GW Bush started it all with the bailout of AIG and others.
Democrats and Republicans -- can't live with 'em, can't live without 'em. Maybe the first truly viable Third Party since the Great Depression could emerge as the "Tea Party" Party. I think I'd actually give up my Green Party affiliation in favor of that one.
Are you listening, Sarah?
Posted: Fri Oct 22, 2010 03:12 am Post Subject:
The PMI/MIP will be automatically added to the loan by the lender, no need to go searching for it yourself.
Hey Max, does this happen in all states? I'm yet to gather more knowledge on home insurance.
Obama may get most of the blame today, but GW Bush started it all with the bailout of AIG and others.
I'd often feel that we're going through some things that had started a while back and then we didn't feel the real pinch.
Posted: Fri Oct 22, 2010 08:25 am Post Subject:
Hey Max, does this happen in all states? I'm yet to gather more knowledge on home insurance.
If it's an FHA loan, the answer is YES. Government regulations require the coverage added to all loans with less than an 80% Loan-to-Value ratio. Since most FHA buyers are not coming in with a 20% down payment, they are going to end up with PMI/MIP on the loan.
Remember that PMI/MIP is not "Home Insurance", but protection for any economic loss suffered by the lender if the borrower defaults on the loan. The borrower pays the cost, and his lender is the beneficiary. In the non-FHA lending environment, imposition of PMI is discretionary, unless the loan will be humped off to FNMA/GNMA, where the same sort of government rules on 80% LTV apply in order to make the loan "conforming" (in addition to maximum loan amounts) and acceptable to the guarantors.
As for Obama-Bush, you might even be able to trace it back to the Clinton years, after he rode the cresting wave of prosperity triggered by the Reagan tax cuts of the 1980s. "Bush I" missed the wave his mentor fomented (His "no new taxes" pledge followed by a massive tax increase), and Clinton caught it in full stride ("It's the economy, stupid") and rode it all the way to shore.
"Bush II" idealized Reagan, but failed to understand his mentality, and led Congress in perhaps the wildest reduce-taxes-and-spend-money-like-a-drunken-sailor spree in the history of the US. Obama is trying to outdo Bush, and making a pretty good attempt.
That, and perpetuating the misguided plan to civilize and democratize the Middle East at the same time. Fools, all of them!
Those alive today will not live to see today's debt paid off in the lifetimes of our great-great-great grandchildrens' grandchildren. Not unless we declare bankruptcy and cancel it all. Wouldn't the Chinese central bank just love us for that!
Posted: Thu Oct 21, 2010 03:02 am Post Subject:
Even though this isn't a credit forum, let's play.
You pretty much can't get any kind of conventional mortgage with a FICO around 648. Due to the tightening of the mortgage market and new federal guidelines imposed on lenders regarding their ability to sell their paper, the lenders are now actually requiring borrowers to have a decent credit score, an actual taxable income that can be proved and money into the house with a down payment.
The old days are seriously gone, as well they should be. Any mortgage lender that didn't see the collapse coming was either seriously impaired mentally or just decided that the money to be had was just too great to ignore. I think it's the last one there. Just a few years ago, you could have a FICO of 500 and get 100% money on your house with a stated income application. Absolutely freakin' ridiculous.
Nowadays, you're gonna need a FICO of at least around 680 or so, ideally something above 720. You'll need a down and closing costs, but in this market you can typically have the seller pay the closing costs, especially if they want out of the house badly. You'll have to meet the debt to income ratios and prove income, normally with your last two years of tax returns.
You're not too far off from the 680 score that you'd need. There are ways to improve your score easily with some effort on your part. If you want to learn how, I recommend the following site:
http://www.creditboards.com/mambo/
It's an excellent board and has a ton of info on credit of all types. I've been a member there for more than 8 years and vouch for their site, if that means anything.
You do have a couple of options... maybe. Have you thought about possible a lease-to-own option or an owner-carried contract? Owner-carried usually takes about 20% down. Lease-to-own works for many people and there are more and more coming on the market as people look to do SOMETHING with their properties they can't unload.
You're right to be looking now... it's definitely a buyer's market all over the country. In my area, it's a freakin' fire sale and will be for some time to come. I'm lucky in that I bought well and have a fixed mortgage with a great rate, I actually have equity in my house! Scary, huh?
You can get there, too. Work on your credit, you only need another 40 points or so, save your money and prepare for the document trail.
InsTeacher 8)
Posted: Thu Oct 21, 2010 07:35 am Post Subject:
You pretty much can't get any kind of conventional mortgage with a FICO around 648.
FHA loans are still a possibility with such a FICO score as this. The PMI/MIP will be automatically added to the loan by the lender, no need to go searching for it yourself.
Personally, having had the FHA experience about 35 years ago, I would never want it again. It was a pain in the a** then, and it's just a bigger one today. Obama may get most of the blame today, but GW Bush started it all with the bailout of AIG and others.
Democrats and Republicans -- can't live with 'em, can't live without 'em. Maybe the first truly viable Third Party since the Great Depression could emerge as the "Tea Party" Party. I think I'd actually give up my Green Party affiliation in favor of that one.
Are you listening, Sarah?
Posted: Fri Oct 22, 2010 03:12 am Post Subject:
The PMI/MIP will be automatically added to the loan by the lender, no need to go searching for it yourself.
Hey Max, does this happen in all states? I'm yet to gather more knowledge on home insurance.
Obama may get most of the blame today, but GW Bush started it all with the bailout of AIG and others.
I'd often feel that we're going through some things that had started a while back and then we didn't feel the real pinch.
Posted: Fri Oct 22, 2010 08:25 am Post Subject:
Hey Max, does this happen in all states? I'm yet to gather more knowledge on home insurance.
If it's an FHA loan, the answer is YES. Government regulations require the coverage added to all loans with less than an 80% Loan-to-Value ratio. Since most FHA buyers are not coming in with a 20% down payment, they are going to end up with PMI/MIP on the loan.
Remember that PMI/MIP is not "Home Insurance", but protection for any economic loss suffered by the lender if the borrower defaults on the loan. The borrower pays the cost, and his lender is the beneficiary. In the non-FHA lending environment, imposition of PMI is discretionary, unless the loan will be humped off to FNMA/GNMA, where the same sort of government rules on 80% LTV apply in order to make the loan "conforming" (in addition to maximum loan amounts) and acceptable to the guarantors.
As for Obama-Bush, you might even be able to trace it back to the Clinton years, after he rode the cresting wave of prosperity triggered by the Reagan tax cuts of the 1980s. "Bush I" missed the wave his mentor fomented (His "no new taxes" pledge followed by a massive tax increase), and Clinton caught it in full stride ("It's the economy, stupid") and rode it all the way to shore.
"Bush II" idealized Reagan, but failed to understand his mentality, and led Congress in perhaps the wildest reduce-taxes-and-spend-money-like-a-drunken-sailor spree in the history of the US. Obama is trying to outdo Bush, and making a pretty good attempt.
That, and perpetuating the misguided plan to civilize and democratize the Middle East at the same time. Fools, all of them!
Those alive today will not live to see today's debt paid off in the lifetimes of our great-great-great grandchildrens' grandchildren. Not unless we declare bankruptcy and cancel it all. Wouldn't the Chinese central bank just love us for that!
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