Home Buying in Sacramento>Question Details

Wendy, Home Buyer in Sacramento, CA

My husband and I went through Pro City Mortgage in Sacramento because they are supposed to be one of the best

Asked by Wendy, Sacramento, CA Sat Aug 2, 2008

in bad credit loans. They told us it wasnt our credit score or our income but what was on our credit that made them say no to us. Meanwhile they had us get 3500 for closing costs and 3% down. I felt like they wasted our time. Is there anyone out there that can work with a 540 or 550 FICO score? We are looking at buying a home for under 85000.

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Rebeccatrulia’s answer
I don't think they wasted your time so much as gave you some education. (trying to give you a better perspective on this). With your credit score low, and if your income shows that you've been employed for over two years, the best thing is to work with a lender to set up a plan. The rules are changing as we speak, and collections will keep coming up to bite you. You might want to pay them off first, or work out a payment plan so that they no longer report negatively. You may want to have a lender run a credit optimizer tool to let you know what changes in your debt would best increase your score (as well as your overall credit worthiness to a mortgage lender).

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.
Web Reference: http://www.suearcher.com
1 vote Thank Flag Link Sat Aug 2, 2008
Hi Wendy

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0 votes Thank Flag Link Tue Sep 24, 2013
Your will need to raise your credit scores to over 625 or more. Many loan officer DO NOT NOR can render a true opinion TILL all facts are made available.

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Wed Feb 2, 2011
Hi Wendy I am Ed a Real Estate agent in Lincoln I think thay have helped you get started on your way to purchasing a home now all you need to do is get a copy of your credit report from all three credit agencys and start getting your credit cleaned up it takes about 3 months do not use an agency you can do this your self. Then you can go back to a bank or mortage company and try for a new loan.
Best of luck

Ed Bailey
0 votes Thank Flag Link Wed Feb 2, 2011
i sued procity in civil court and lost because the owner is hiding behind the corporation. i know there is at least one other person that had the same result. attorney esminger in lincoln is reviewing the case for a class action law suit but i have not heard anything lately. if anyone has any more info, wants to add to the class action, or add any additional information i am willing to be the coordinator of information and email addresses. this guy ripped me off for $2790. first i won my suit in court and then he got it reversed. its dispicable how he is able to hide behind the corp. there must me some way to fight him. please contact me so i can help Esmingers office get enough victims together. thank you, S. McClary fallon502 @ gmail.com
0 votes Thank Flag Link Wed Feb 2, 2011
I paid upfront, recieved a one page analysis, of which i supplied them in excel, and was told mail it all in, make all the phone calls, and good luck. I was shocked to find out they dont pre underwrite, turn my package in for me, or follow up on anything. I drive my local ProCity and found a Uhaul out front and boxes piled up. The handful of people there were not friendly, or forthcoming with any information. The only thing i forced out of them was an email address for more information. compliance@procityonline.com; but they didnt know if it works.
0 votes Thank Flag Link Thu Aug 5, 2010
Sue, you are on the money with much of your post, but if I may, I need to correct a couple important facts.

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.
0 votes Thank Flag Link Tue Mar 30, 2010
If you don't mind, since this conversation has been going on for a very long time, I'd like to clarify a few points for those looking at a loan modification right now....and with ANY company.I have no experience with ProCity good or bad, but act a home retention consultant hired by lenders through Titanium Solutions. No charge.

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.
Web Reference: http://www.suearcher.com
0 votes Thank Flag Link Mon Mar 29, 2010
Hi Wendy,
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!

Good Luck!

Bill B.
The Mortgage Mentors (c)
Great Advice! Great Alternatives! Great Attitudes!
0 votes Thank Flag Link Wed Aug 6, 2008
I agree with Sue. You need to remember the lending market is night and day compared to just a couple years ago. Before you needed to just have a pulse to qualify.. Now lenders are much more strict. Credit is more important than ever especially when you are only putting 3% down.

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!
0 votes Thank Flag Link Tue Aug 5, 2008
Do you have any judgments? CALHFA is the only lender that I can think of that requires you to pay collections over a certain amount. Is that where they sent your loan? Let me know if you would like a second opinion.
0 votes Thank Flag Link Sat Aug 2, 2008
This is the first time we will be buying a home. Our income is around 4600+ a month our FICO is 553. We arent trying to get into an expensive home. We are looking at 85000 at the most for the price of a home. Right now we are interested in a 75000 home. We have a copy of our credit report that was just pulled this past week if anyone thinks they can help us I would be more than happy to email it to them. THANKS
0 votes Thank Flag Link Sat Aug 2, 2008
The reason that was given to us for not qualifying was collections over 2000. We were told our debt to ratio was fine, we were told our FICO score was fine, our income was fine but that the underwriters didnt want to give us a loan because they were afraid of a judgement on the home. We are planning on buying a home to stay in for many years. We have three kids and need a bigger home. Currently rent is so high that we cant afford to live in a decent community for less than 1200 a month. By buying a home for under 85000 we can live in a decent community and still pay less than rent is going for these days. We can afford a home but cant afford to rent. This is why we are trying to get into a home of our own. Sure there are cheap rentals but nothing you would want to raise a family in. Isnt there anyone that can understand that?
0 votes Thank Flag Link Sat Aug 2, 2008
What is on your credit - do you have a copy of your report? Do you have recent late payments, active collections, a recent bankruptcy, past reposessions, past short sale, or past foreclosure? Those types of things on your credit report, depending on how recent they are, can definitely prevent you from qualifying for a mortgage.
Web Reference: http://www.erinattardi.com
0 votes Thank Flag Link Sat Aug 2, 2008
Erin Stumpf…, Real Estate Pro in Sacramento, CA
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