They aren't just looking at FICO and income. They look at the likelihood that you'll default, especially in today's climate. So make a plan, and you'll see it really won't take too long, I promise.
Todayâ€™s Reverse Mortgage has built-in safety features so retired folks can enjoy their â€œGolden Yearsâ€ without the worry of financial turmoil. The government wants retirees to be self-reliant versus being forced into the system where they would live out their years with limited means. If your house has equity, itâ€™s a dormant asset there for the taking. You can be utilizing that equity for something relevant, something good for your situation.
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
Best of luck
It is not necessary that one have employment w/ MHA nor most traditional lender mods. But there must be 7+ months left for unempl income to be used. Current HDR needs to be above 31%. Living expenses, groceries, etc only contribute to imminent default analysis via net disposable calculation coming in and going out after the standard waterfall approach has been applied.
Also, Sue, I must take exception to your advice that any one person is as good as another. I know you do not believe that to be true with agents, do you? And if your statement was true, there would be no reason for the advice. Brushing one's teeth? That's a good do-it-yourselfer. Modifications? Does a typical homeowner know when a lender has miscalc'd income, HDR, input incorrect data on the NPV, miscalc'd net disp? This list could go on and on and lenders error ALL THE TIME, in fact, most of the time. The homeowner, in most cases, will not even recognize the problem. Lastly, a good professional working on a loan modification will certainly have better skills than the average homeowner.
The law, enacted October 2009 does not allow any upfront payment to any company, or attorney in helping you with a loan modification. Payments can only be received after.
Lenders are evaluating your cashflow. Currently you must have employment. Your living expenses need to be within the range of 40% of your GROSS income, and then they will lower your mortgage (including principal, interest, taxes and insurance) to 31% of your gross income. The other 29% is for paying taxes, etc. making up 100%. This is defined in the HAMP program documentation.
There is no magic. It takes persistence. Your back up documentation (including bank statements) must sustantiate the numbers given. You need complete documentation. like 2 years SIGNED tax returns. (many people provide the copies that are not signed). Many of the delays are because of small reasons like missing a signature. Sometimes a company can help you stay organized and provide the complete documentation, but believe me, no one is doing something you can't do for yourself if you concentrate on it. They don't have special negotiating skills that you don't have. It's just something that is so emotionally upsetting that you might need someone who's conentrating on giving organized information....whether it's ProCity or your Uncle.
Call me tomorrow morning 916/871-2250 after 9:30 am and let's talk about your overall situation.
Based on what you wrote (your question and replies), your challenge in qualifying for your home loan seems to be obtaining a Fannie Mae approval. There are lenders that will work with folks with your credit scores, yet they use the Fannie Mae automated underwriting system as their template.
You may have other challenges we don't know about yet, but if we are able to obtain this level of approval, you're well on your way!
The Mortgage Mentors (c)
Great Advice! Great Alternatives! Great Attitudes!
If I can be completely honest... your score is "challenged" and the fact that they could get you into a loan at all with so little down, is a good thing in this market. Trust me... I do this for a living! I am not knocking you about your score, I just want you to realize the current state of the mortgage market.
If you were my client, I would go through a budgeting process and do a thorough review of your credit report. Number one thing we would need to work on is a plan then worry about the loan.
There are down payment assistance programs still available that can help you with the down payment, but you really do need a plan. Any good Realtor would know how to structure this for you.
Because of your price range, it would really benefit you to buy if you can create a plan for success. The fact is you would not be paying much more than your rent and you could own the home instead of paying someone else's mortgage.
I wish you luck!