The Manufactured Housing Forums

This question is for Murray - or anyone else that is knowledgeable about the situation. Has there been any progress in loosening the strings in their new law?

The legislature passed and the governor signed a new bill which became immediately effective on March 16....

The bill fixed the major problem that nearly put the whole business out...It also fixed some of the other problems the original law had such as revising the rules about FHA and VA which actually made them illegal and/ or hard to get...

But for those with challanged credit...it will still be hard to find a loan....Also in some cases that we used to do business with...such as no income verification loans for scores between 600 and 680...these will probably no longer exist...This could hurt the self employed, waitresses and the like a lot..


FHA will be the finance choice for those with a credit past...For this, one will have to have had NO 30 day lates in the last 12 months, 4 references with 12 month payment history and ALL collections, liens and judgements will have to be paid at or by closing...As one of my mortgage companies say...Everyone is no more than 12 months from a purchase...

What would happen with a 5 yr old repossession that has never been pursued? Would a credit score between 600 and 680 WITH income verification be available? there are no liens or judgments. There are a couple of old collections (medical actually).

Fannie Mae and Freddie Mac (often called conventional finance) will finance those with these scores with income verification....For them the general rule would be that collections are ok..but no individual collection can be over $ 1500 with a maximum total of $2500...Often money can be built into the deal to help pay off the balances above these limits..
If the repo has a charged off balance over $1500..it might very well be considered a collection...There are a number of routes for you to deal with this situation...
1) get your credit files from all 3 CB's...send in disputes on the amount listed on the CB's that show the repo...The original lender has 30 days to verify the facts of their posted info..if they do not..it will go away..Some auto lenders have gone out of business..others do not bother with info this old..others will reaffirm the balance due..(the problem here could be that if they reaffirm the loss..it could lower your scores because the new mention of a collection will be with in the last 2 years)..
2)..after you try this..you can call them and ask to pay a settlement amount..Often lenders will take much lower than the listed loss..or they will work out a new installment contract to pay the balance and clear the charge off..I have found that negotiating for a lower payoff sometimes can be done better by your sales person or loan originator...Often collectors will negotiate with third parties easier than with the original dept holder..I just had one of these..loss was 10K..they settled for $4500..which we could build into the loan for the home..

The best palce to get good advice is from the loan originator...They are commissioned folks and only want to make a loan..They will tell you what route to travel that will aollow you to proceed..

Good Luck

Thanks, Murray!

murry, are you saying that if your score is between 600-680 you might not be able to get a VA loan. Currently my husband and I have credit scores around 680?

Not at all....VA is not score driven and many folks with much lower scores can qualify...BUT...the only advantage of the VA is downpayment...Actually the Fannie Mae and Freddie Mac loans that I mentioned are better deals than the VA offers...With you credit scores you should shop lenders for the best deal..Remember 1% can be as much as $30,000 over time...