Realtor/Lender Frustrations!!

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64 SRT8 Dart

64 SRT8 Dart

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Colorado Springs,Colorado
Hi all!! Been a while again since selling the Valiant.....I still lurk around off line though, lol. I will always be apart of this site and still am always checking for deals on A bodies on CL and stuff, lol. Will always have this disease!!


Well, moving on to the topic in the title. My wife and I have been extremely frustrated with trying to get any lender/Realtor to actually sit with us and discuss options. :banghead:

A little about our situation:

We're in a 1 bedroom apartment paying $845mo in rent w/shared utilities of an avg of $60mo =$905mo.
The city utility is avg $125mo.

We both have student loans and pay approx $550mo combined.

We have two car loans totaling $18,440. Car 1= $375mo/ Car 2= $190mo

One credit card w/$10,000 limit w/approx $7000 on balance and going down weekly. Pay $200mo(extra $$ incl)


That is all of our debt. I don't think we're in too bad a shape compared to many our age (mid 30's).

My wife's credit score is in the high 700's and mine is in the 590's (as of July 2015). Mine is low but has come up due to having a bunch of med bills go into collections...hence the high balance on the credit card....paying all those off. The CC bal. was higher but have paid nearly $2000 in extra pmnts to get it down.

Our combined income for 2015 is just under $90,000. My wife's net pay is $1800mo while mine is $3200-3400mo.

We've managed to put money in savings as well. Just not enough for a significant down payment.

The last lender we tried with said that with my wife's cred score and my income we pre qualify for a loan up to $300,000 but that we would have to have a cosigner with my wife and not my signature. He said due to the high balance on the cc, it brought my cred score down. We were trying for down payment assistance and I needed at least a 620 cred score to qualify, so that was a no-go. But that's it, didn't want to explore any other options....just a good luck see you later after that. :burnout:
This is the second time this has happened. No one wants to explore options. I think we qualify for a "first time home owner" but they don't want to discuss it.

Again, it's frustrating as we'd rather be putting the money from paying rent into equity and own our own home. We've lived in this apartment for nearly 7yrs (come July). We do the math it seems every week and we can clearly afford to own a nice home but for some reason, they don't see it.
Sure we qualified for a $300,000 home but we've been looking in the $135,000-$185,000 range so we're not "house broke" all the time. Yes I live in Colorado Springs, so the cost of living is a little higher than some places. Homes are a little more high priced. There are actually homes here in the downtown area that are only 700sq ft on a crappy lot that are listed into the low $100,000's....no joke. :wack:

Call it a rant, call me a cry baby, call me whatever, lol. Just not sure where to go from here and seems hopeless at times. Figured I might get some advice and/or affirmation from some of the awesome members here at FABO who might have some experience at this. Hope all is well with everyone coming into 2016!!:cheers:

Thanks!!!
 
Welcome to the world of federal regulation. Financial institutions no longer have the final word when it comes to deciding to whom the loans should be given.

We are both retired with moderate income, and it was frustrating jumping through all the hoops required to get a home loan approved. We have zero debt, no car loans, credit card paid off every month for decades, no foreclosures or debt write-offs, credit rating around 800, assets and IRAs that exceed the price of the loan, and we put more than 25% down on a $350k new build. It still took two months and mountains of paperwork to get the loan approved. To top it off, my wife is a retired Realtor with friends on the financial end who helped move things along.

To get cheap loans quickly, you have to be an irresponsible deadbeat with no chance of paying off the mortgage. Then you receive help from the feds.
 
You can thanks Fannie Mae & Freddie Mac for this! I think you have two things that are making your loan hard to get. First is probably is your credit score at 590 & second is your loan to debt ratio. Rules have definitely changed since the housing crash. Hurts a lot of good people like yourself that are looking to better their lives & are not looking for a free handout !
 
yep, blame the housing crash for some of this. maybe changing Wall St regulations? out country has also 2 problems, one being the student loan/education delima. sad that our younger generation find themselves drowning in student loan debt!
the housing crisis was due to yes, wall street , the fiasco of out Fed gov't,,, but in a nutshell, home prices were too high, that people in general, really could not afford if the economy had a hiccup and people basically were buying these overpriced homes with no downpayment.

options: consider looking for a home with "owner finance".

you already realize your other problems involved with " jumping thru the hoops." your credit score, credit card debt, ratio of debt to income and to assets. I would ask for a detailed info on what is required for you to qualify, that way you know what to work on first.........

I would consider finding a REAL fincancial advisor to see if there are any other solutions. sorry but my regard for many R/E agents is not very high. most are simply salesmen.
 
Hey Jeremy, long time no hear from!!!

The first thing I thought of after reading this is finding a seller willing to go Land Contract, where you pay a down payment, monthly payments for a certain period of time, then one balloon payment at the end! I do t know if that is an option in Colorado, but it happens all the time here! Most older sellers like this option because they get a substantial amount up front, and monthly payments, which are not taxed the same way as a one time payment, which is subject to huge capital gains taxes! This also gives you time to finance the balloon payment at the end, and buys you time to up your credit score and lower your debt, which you are already doing! Most land contracts I've seen average 5 years around here, but it is the option of the seller to make the terms!

Just throwing something out there, hope you get a nice place, and soon, sounds like you can do it financially, just need the right break!! Geof
 
its a shame that our younger generations have to suffer thru this type of struggles. I would try looking at an owner that will help with financing. I know here in our area there are many that will do this. You also need to work on getting your credit rating up some. There are many theories on ways to do that. Im not sure which ones are the best but take some time to look into it. It sounds like you are working very hard to better your life. Im applaud you for that. Dont give up. Best of luck.
Rod
 
In North Carolina an unlicensed (general contractor) person can build his/her primary residence. If this is the case in Co. then you can get a construction loan to build your home and roll the equity (approximately 20%) into the mortgage loan. So now you'll have your initial dp plus the equity. That is a scenario that lenders typically can't resist. It will also help to have a licensed contractor who does business with the bank in question to go with you and advise the lender that he will be acting as an advisor on the project.
 
In addition to the above, a word of caution. Let's say at the end of the project you come in 30k under budget because there is no contractor fees built in. The bank may want to attach that 30k to your loan by issuing a 30 day signature loan secured by your final draw. You do not have to take it!
 
KrazyKuda, lol. I was just discussing with a coworker about the same thing except with student loans, haha!

Hi Geof, yes it's been quite some time! I've been playing around some with Magnum I bought to replace the Valiant, lol. Added some bolt ons and a tuner and this thing would eat my Valiant alive!

Thanks for the advice everyone. Another member PMd me with an option he did and I'm going to look into it. This might just be what we were looking for!
 
Wow, you guys have properties listed for $300K and less? You would have to go back decades for those prices around here. Try nearly doubling that for a shithole condo with 20 people bidding for it the first day it's listed. That's what it's like here in the South Bay. Lot's of young people here paying cash from all those technology gadgets and services. It's all good if you got in early.

Heck, rent for a 2-bedroom, 1-bath apartment in a decent area are going for $2500 to $3000 a month and still climbing. 1-bedroom, 1-bath studio apartments are $1500 to $2200.

They say the population is going up 30% in the next 15 years here. Hopefully, I am going to be retired by then, and living out of the country for half the time. The dollar still goes a long way out there, but I gotta spend every other couple of months here so I can enjoy my hotrods and grand kids.

Don't let the media lie to you, there IS a race going on for limited goods and resources, and the race is between peoples from all walks of life and every country on the planet, and the starting gun went off a long time ago.
 
jbc426 said:
Wow, you guys have properties listed for $300K and less? You would have to go back decades for those prices around here.
Click to expand...



maybe yall oughta move to MI
a 3 bedroom, 2 bathroom 1750 square foot duplex goes for less then $200.000 here
and keep in mind, that is for BOTH sides, so it is a 6 bed, 4 bathroom 3500 square feet building



as far as mortgages go, try a credit union instead of a bank
me and the wife have had good luck with them
 
I am a 16 year broker/ lender dealing with FHA. conv.

The credit score is the issue at hand, so lower the balances to under 50% of available credit. Also If you have any late payments , dispute with credit reporting agency's.
Feel free to call 209.609.0233 Jeff
 
Payoff the credit card....It's not the lender or especially the realtors fault.....
 
instead of the savings account which is paying very little, I would be paying off credit cards and other loans starting with the ones that have the highest interest.
 
We got our home loan through USDA program, qualifications are lower. There some stipulations with it though, and usually only for houses outside city limits and such.

Our problem was cash in the bank, and my med bills, the lender wanted to see a month or 2 payments sitting in the bank after close. We got there , and my grl worked a second job and every dime went to get her debt down. I worked deals with the coll agencies to make payments for a few, instead of dumping them on a card with interest.

As those collections age your score should come up, , watch new inquireries, and new derogatory,

I takes a while, took me a year to go from 540 to 650 to qualify, keep plugging along
 
Lancair said:
I am a 16 year broker/ lender dealing with FHA. conv.

The credit score is the issue at hand, so lower the balances to under 50% of available credit. Also If you have any late payments , dispute with credit reporting agency's.
Feel free to call 209.609.0233 Jeff
Click to expand...

That made a big difference in her score once my girl got all of hers to that point.
 
64 SRT8 Dart said:
Hi all!! Been a while again since selling the Valiant.....I still lurk around off line though, lol. I will always be apart of this site and still am always checking for deals on A bodies on CL and stuff, lol. Will always have this disease!!


Well, moving on to the topic in the title. My wife and I have been extremely frustrated with trying to get any lender/Realtor to actually sit with us and discuss options. :banghead:

A little about our situation:

We're in a 1 bedroom apartment paying $845mo in rent w/shared utilities of an avg of $60mo =$905mo.
The city utility is avg $125mo.

We both have student loans and pay approx $550mo combined.

We have two car loans totaling $18,440. Car 1= $375mo/ Car 2= $190mo

One credit card w/$10,000 limit w/approx $7000 on balance and going down weekly. Pay $200mo(extra $$ incl)


That is all of our debt. I don't think we're in too bad a shape compared to many our age (mid 30's).

My wife's credit score is in the high 700's and mine is in the 590's (as of July 2015). Mine is low but has come up due to having a bunch of med bills go into collections...hence the high balance on the credit card....paying all those off. The CC bal. was higher but have paid nearly $2000 in extra pmnts to get it down.

Our combined income for 2015 is just under $90,000. My wife's net pay is $1800mo while mine is $3200-3400mo.

We've managed to put money in savings as well. Just not enough for a significant down payment.

The last lender we tried with said that with my wife's cred score and my income we pre qualify for a loan up to $300,000 but that we would have to have a cosigner with my wife and not my signature. He said due to the high balance on the cc, it brought my cred score down. We were trying for down payment assistance and I needed at least a 620 cred score to qualify, so that was a no-go. But that's it, didn't want to explore any other options....just a good luck see you later after that. :burnout:
This is the second time this has happened. No one wants to explore options. I think we qualify for a "first time home owner" but they don't want to discuss it.

Again, it's frustrating as we'd rather be putting the money from paying rent into equity and own our own home. We've lived in this apartment for nearly 7yrs (come July). We do the math it seems every week and we can clearly afford to own a nice home but for some reason, they don't see it.
Sure we qualified for a $300,000 home but we've been looking in the $135,000-$185,000 range so we're not "house broke" all the time. Yes I live in Colorado Springs, so the cost of living is a little higher than some places. Homes are a little more high priced. There are actually homes here in the downtown area that are only 700sq ft on a crappy lot that are listed into the low $100,000's....no joke. :wack:

Call it a rant, call me a cry baby, call me whatever, lol. Just not sure where to go from here and seems hopeless at times. Figured I might get some advice and/or affirmation from some of the awesome members here at FABO who might have some experience at this. Hope all is well with everyone coming into 2016!!:cheers:

Thanks!!!
Click to expand...

i just purchased a income property and went thru all this last month....i was approved for the loan in less than 2 weeks. as i look at your income details i can see why you are having problems. your debt to income ratio is too high. your cc needs to have no more than 20% of the total limit on it. you need to get your income to debt ration to around 25%. your is almost 50%. so you need to shed some debt like get rid of a car payment and get that cc down to around 2000 dollars. if you talk to any mortgage company they would tell you something like this. and yes thank the new fed regulations for this.
 
This, or a version of this may help you..

As an example, I had a house up for sale at $380k,, the purchaser only had $20k (5%) down payment, but needed 10% to qualify for mortgage..

Thru a mortgage broker , I loaned the purchaser $20k, to give them the $40k (10%) they needed as down payment, and we adjusted the house price to $400k.

It worked out for all parties..

I've done it a coupla times to help new purchasers..

cheers
 
After the Feds made it easy for the banks to make buttloads by loaning to people who didn't qualify, the economy crashed when the bubble burst, leading the Feds to spank the banks for making bad loans (that the government, under Clinton, told them to make).

The pendulum has swung back to where it's really hard to qualify for conventional loans.

Your other option is hard money until you get your credit score up, but the interest rates will be a lot higher (10%-12%), probably interest only, 30 due in 3 - 30 due in 5 (so you re-fi as soon as you can get approved for a conventional loan to get your interest rate down to a competitive rate).

Oh yeah, the government, making student loans readily available caused tuition to rise to meet the increased amount of money available to be spent on college, which is part of why your student loan payments are so high.

BTW, the Fed lowering interest rates had a similar impact on the housing market - suddenly people could qualify for a lot bigger loan so, guess what, prices went up. (Happened in the 70s when banks started counting the wife's income toward the loan payment - prices went up 50% - 60% in pretty short order).

Don't blame capitalism - blame government corporatism
 
64DartGTinAZ said:
After the Feds made it easy for the banks to make buttloads by loaning to people who didn't qualify, the economy crashed when the bubble burst, leading the Feds to spank the banks for making bad loans (that the government, under Clinton, told them to make).

The pendulum has swung back to where it's really hard to qualify for conventional loans.

Your other option is hard money until you get your credit score up, but the interest rates will be a lot higher (10%-12%), probably interest only, 30 due in 3 - 30 due in 5 (so you re-fi as soon as you can get approved for a conventional loan to get your interest rate down to a competitive rate).

Oh yeah, the government, making student loans readily available caused tuition to rise to meet the increased amount of money available to be spent on college, which is part of why your student loan payments are so high.

BTW, the Fed lowering interest rates had a similar impact on the housing market - suddenly people could qualify for a lot bigger loan so, guess what, prices went up. (Happened in the 70s when banks started counting the wife's income toward the loan payment - prices went up 50% - 60% in pretty short order).

Don't blame capitalism - blame government corporatism
Click to expand...

yep that explains it for sure. doesn't it just make you wonder really just how WELL our country would work if the fed. govt stayed out of the works!!????

back in the mid 70's inflation was running wild. the gov't put a FREEZE on most things. I had a small herd of cattle, calves were selling high, like $1 a pound, .... then they took off the freeze, and calves dropped to $.10 a pound. and cattle prices were very low for several years. I sold the herd, when they dropped to $.10 and took my loss.

back in the day, Jessie James was in charge of keeping the crooked banks and railroads in line!!?? but never anyone to keep the Feds in line!? ha.. yep.
 
I don't know if this would work but what happens if you write a letter to the big 3 credit score folks protesting your marks.I think but not for sure if the people whom put it on there don't reply in a certain amount of time it gets removed.Just throwing it out there.I paid a guy back in the 90's to do that and my credit score went up.The laws might have changed.I hope you can check this out and it works for ya.Affordable insurance act=Rip off
 
inertia said:
This, or a version of this may help you..

As an example, I had a house up for sale at $380k,, the purchaser only had $20k (5%) down payment, but needed 10% to qualify for mortgage..

Thru a mortgage broker , I loaned the purchaser $20k, to give them the $40k (10%) they needed as down payment, and we adjusted the house price to $400k.

It worked out for all parties..

I've done it a coupla times to help new purchasers..

cheers
Click to expand...

correct me if I'm wrong, but doesn't this mean that they will be taking 30 years to pay back the 20K "loan" that was added to the mortgage?
I wonder how much that is interest over those 30 years and if that really was the smartest option
 
diymirage said:
correct me if I'm wrong, but doesn't this mean that they will be taking 30 years to pay back the 20K "loan" that was added to the mortgage?
I wonder how much that is interest over those 30 years and if that really was the smartest option
Click to expand...

might I add, a 30 yr amortized mortgage is never a good move, unless int rates are near 0.. figure the int you wil pay 20 yr vs 30......
 
You won't like my answer. Young people want it now and have no patience to wait. I've been were you are. I listened to this guy, daveramsey.com, I don't agree with everything he says but, he has some good ideas. Both my kids are in their 30s and debt free. One just bought a home and isn't house poor like a lot of your generation. Pay off your debt, save, then buy and most important... Don't listen to broke people. Now looking forward to retirement not dreading it. And the plus, l can buy car stuff when I want to. My 2 cents.
 
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