financing questions

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Chris H.

financing questions

Post by Chris H. » Thu Oct 03, 2002 8:46 pm

Hi, we are interested in a home/land deal and I'm curious what kind of payments we could expect. 1acr with septic, well etc runs $20,000 in our area. We don't have very good credit because of a lay off three years ago and high medical bills from my disabled wife. We do have a minimum of 7 verifiable years of never having been late with a rent payment. Would it be possible to finance even a basic double wide (3bdr) and the land with a down payment around $1500-$2000 and payments in the $500-$600 range? Is it easier to get financing on a manufactured home? I know no one can give me exact answers but any info that might help would be apreciated.

rmurray

Re: financing questions

Post by rmurray » Fri Oct 04, 2002 4:27 am

It is not easier or harder to finance a manufactured home vs stick home..The rules and the process are the same..

Answering the rest of your question is much harder...Payments are directly related to interest rate and of course amount financed...Normally there is the land, land prep and the home...Land prep seems to vary a lot depending on the area you are in...Homes in some parts of the country are much more competitively priced..

No matter your situation...Rates are lower today than ever...that means payments are lower now than ever...

If you have 12 months with NO 30 day lates...you should have no problem getting financed at a good rate on the FHA....Judgements and collections would have to be paid or arrangements will have to be made to pay them...

You should get your credit files and scores...this way you can take them to a few brokers and dealers and ask advise...You can buy this info on the web for about $44....But be sure you get a FULL trimerged file with all 3 scores...

By the time you add escrow for taxes and insurance...your payment goal will be close...

Good Luck...stop back often

Chris H.

Re: financing questions

Post by Chris H. » Fri Oct 04, 2002 8:40 am

Murray, thanks for your quick reply. To be honest i have gained much more knowlege from reading your past posts than from any of the jokers at the local dealers. Its like going to buy a used car.
I got all three reports last night but only one score : ( I did this after reading your company website). Everything on our credit report is hospital bills except for a rented horn we returned 2 yrs ago. What really upsets me is that the two cars we paid out within the last 7 yrs from used car lots aren't on the reports anywhere. our rating is a 572. I looked at the FHA website last night and found another problem. I'm paid salary + commission. The store where I work pays us commission and calls it "expenses". So, I have no way to verify my income by FHA standards. This is all so very frustrating, I'm ready to just keep renting and forget the whole thing.

John

Re: financing questions

Post by John » Fri Oct 04, 2002 9:48 am

If you financed the cars through the dealers than they may not report to the credit companies. A lot of finance companies will accept salary plus commission if you have a years worth stubs and I would question the accounting practices of the store when they pay you commissions as expenses. Do they W2 these wages?
I have found that the three credit agencies are real close in their scores. You can never get a perfect score because if you charge to much you get rated down and if you charge too little you get rated down plus if you apply for anything that requires a credit check you get rated down.

Chris H.

Re: financing questions

Post by Chris H. » Fri Oct 04, 2002 9:55 am

Your right, the accounting practices here are very questionable, but i'm stuck until i can find something else.
As far as credit ratings it all sounds like a big scam to me.

rmurray

Re: financing questions

Post by rmurray » Fri Oct 04, 2002 2:11 pm

I am not sure which state you are looking in...but there are some none FHA lenders taking 580 scores at good rates...

There are also "no income verification" loans..but they usually take about a 625 score...

Take a good look at every item on the credit file...You might be able to get your scores up a little by having the cb's correct any mistakes..

No collection should be there more than 7 years after the first day of the items becoming late...Not 7 years from when filed in the cb..

Often..there are lenders out of business that will not verify any challange that a consumer makes..Example..Heilig Meyers Furniture..They are gone and will not reaffirn a challange..I had a Relliance Finance Auto repo removed from a file this week for a customer for the same reason..

Paying off old collections will not help your score...Actually they might hurt..Odd part of the system..Leave them alone until you have an approval...

This income verification thing might be hard to beat though..tax returns are what they will want..Fake ones can cause you lots of trouble...All lenders will have you sign an IRS form allowing them to get an actual copy from them...There are dealers that might suggest fake returns...Do not do this..period...Jail is not fun..

Of course...you are supposed to be paying 15% ss tax and income tax on this money...If you are going to file next year and pay...That will do for verification....but you will not bew able to get a home till then..

Good Luck

Chris H.

Re: financing questions

Post by Chris H. » Fri Oct 04, 2002 3:23 pm

I'm in Texas, I really appreciate your help. Of course if I file on that income and the company is writing it off as expenses i might not have a job after i file so buying a home won't be much of an option either.
Of course my salary and wifes disability might be enough to get approval since we have no debts, no car payments etc.

rmurray

Re: financing questions

Post by rmurray » Sat Oct 05, 2002 6:34 am

With no major debt...You should have not problems...You can do the math...but with your score your housing payment including insurance and taxes should stay around 30% of your gross income...FHA will go higher but there have to be mitigating circumstances...such as no other major debt...

I keep mentioning FHA...because they will have the best rate for your situation...There is no downpayment requirement and current rates are about 6.5% =/- 1/2%....

National City Mortgage is a specialist in FHA...They also have an office that specializes in manufactured homes...Their closing costs are low and they offer good advice to the consumer and have low cost construction loans that will satisfy the dealer...

All Champion Home dealers (they operate under 20 different trade names) have direct connection to them...You can also go to them yourself...but it is much easier to deal directly through a dealer..

You might go to www.ChampionHomes.net and search for dealers in your area....The brands they carry will be listed on their dealer web site at Champion....

You can make this happen..Good Luck

P.S....by the way that report you bought through consumerinfo are some of the best on the web...This company is owned by Equifax...One of the big three credit reporting companies...These reports are easy for consumers to understand and are very comprehensive..

Mrs X

Re: financing questions

Post by Mrs X » Sun Oct 06, 2002 6:42 am

If I buy this credit report from the above company, will that count against my record as a credit CHECK?

Thanks for your help-

rmurray

Re: financing questions

Post by rmurray » Sun Oct 06, 2002 9:03 am

NO...good point..this is one of the reasons I recommend this service...use of it will not hinder your ability to get the best deals..

Good Luck

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