Drop in Home Prices Forecast....

[Chasey_Lane]

How in the heck can they qualify, remember, no money down!!!
Thanks

Do they have any other debt? Credit cards, vehicles, loans, anything? Even though they declared bankruptcy a few years ago, their credit rating could be good enough to qualify.

And...they'll have to pull credit again when it comes closer to settlement. Credit reports are only good for 90 days.

 

[FromTexas]

Ah ok. I had annual stats stuck in my head.

That is a more appropriate stat. Finding a couple months one way or the other says nothing. It is how it averaged for the year. It is like the discussion above where Renter points to a one month aberration for housing starts but since all that effects an annualized rate, the annualized rate is what is important. It is like GDP. It is constantly shifting what we calculate our annual GDP rate to be each time the figures are released. If it said 1.5% in the second quarter and was now a 3.5% rate in the third quarter, that is an annualized rate which negates what the second quarter showed since it is for the year.


If you only sell ten percent of your goods you normally sell in January but you sell ten percent more in every other month than you normally sell... does January really matter?

 

[itsbob]

Do they have any other debt? Credit cards, vehicles, loans, anything? Even though they declared bankruptcy a few years ago, their credit rating could be good enough to qualify.

And...they'll have to pull credit again when it comes closer to settlement. Credit reports are only good for 90 days.

I think it depends on the type of bankruptcy too, and if it's been cleared (they've paid all their creditors what the court decided they should pay).

If I remember correctly, I think it's 6 months or a year after bankruptcy settlement that it doesn't adversly effect your credit as much and your score partially recovers.

Of course they don't mention if it's an 80/20 mortgage and what interest rate they'll be paying.

 

[Lugnut]

I have a question about all this:

My friend is moving in a house that is costing her 390K, no down payment and she and her husband make about 100k a year, gross. After that they need to take out 700 a month in c/s. The mortgage company is getting them in at a fixed rate but how the heck are they qualifying. It boggles my mind. Also, they both have bankruptcy about 5 years ago. The house is being built now and should close in 4 months. The paperwork has not been sent to the underwriter yet, could they be building this house and excited about nothing?
How in the heck can they qualify, remember, no money down!!!
Thanks

I just ran those numbers through a mortgage calculator, used my own numbers for misc. expenses (groceries, gas, car insurance, utilities...), and assumed NO other debt (car, credit cards, etc.)

It's gonna be tight for them, VERY tight.

 

[MMDad]

I have a question about all this:

How in the heck can they qualify, remember, no money down!!!
Thanks

VA, FHA, or other program?

 

[rdkarob]

VA, FHA, or other program?

Well something about she claimed bankruptcy but never went to court and still owes these creditors also owes the IRS 9K, no credit card debt either just child support, and of course the miscelleaneous things. They are going FHA. Boggles my mind.

 

[rdkarob]

I think it depends on the type of bankruptcy too, and if it's been cleared (they've paid all their creditors what the court decided they should pay).

If I remember correctly, I think it's 6 months or a year after bankruptcy settlement that it doesn't adversly effect your credit as much and your score partially recovers.

Of course they don't mention if it's an 80/20 mortgage and what interest rate they'll be paying.

No 80/20 and 1/2 % higher than the current rate.

 

[itsbob]

Well something about she claimed bankruptcy but never went to court and still owes these creditors also owes the IRS 9K, no credit card debt either just child support, and of course the miscelleaneous things. They are going FHA. Boggles my mind.

Sounds like they may have contemplated bankruptcy, but instead went to a Credit Counselor that cut their payments and interest. This would actually help your credit score immensely, as everyone is still getting their money dollar for dollar.

 

[Chasey_Lane]

Well something about she claimed bankruptcy but never went to court and still owes these creditors also owes the IRS 9K, no credit card debt either just child support, and of course the miscelleaneous things. They are going FHA. Boggles my mind.

Where do they live? In St. Mary's, the FHA limit is about $282K. There's no way they could be financing $390K under FHA.

 

[rdkarob]

Sounds like they may have contemplated bankruptcy, but instead went to a Credit Counselor that cut their payments and interest. This would actually help your credit score immensely, as everyone is still getting their money dollar for dollar.

Nope, they pretty much have never paid anyone back. Don't know the whole story but I do know she filed then when it was time to go to court she didn't show up so I don't know what happens then.

What would a payment be realistically on 390K in Lexington Park? Taxes and other stuff included. I told her about 2700 a month.

 

[rdkarob]

Where do they live? In St. Mary's, the FHA limit is about $282K. There's no way they could be financing $390K under FHA.

ARe you a realtor? She is moving to Lexington Park in Southwinds I think it is right pass the base, new neighborhood.

 

[Chasey_Lane]

I told her about 2700 a month.

Yep!
But if they're doing an 80/20, I'm guessing it would be slightly higher. The second mortgage rate (I'm guessing) is around 9-10% maybe.

 

[huntr1]

Neighbors of mine have just listed their house. Bought it in '02 for $184K. Asking $385K now. I hope they get it, and quickly.

 

[Chasey_Lane]

ARe you a realtor? She is moving to Lexington Park in Southwinds I think it is right pass the base, new neighborhood.

She is paying $390K for a house in that neighborhood?

And no, I'm not a realtor.

 

[Chasey_Lane]

Neighbors of mine have just listed their house. Bought it in '02 for $184K. Asking $385K now. I hope they get it, and quickly.

Oooh, good for them!

 

[rdkarob]

Yep!
But if they're doing an 80/20, I'm guessing it would be slightly higher. The second mortgage rate (I'm guessing) is around 9-10% maybe.

not doing an 80/20, no money down so doesn't it have to be FHA? Not sure what the requirements are for conventional

 

[itsbob]

Nope, they pretty much have never paid anyone back. Don't know the whole story but I do know she filed then when it was time to go to court she didn't show up so I don't know what happens then.

What would a payment be realistically on 390K in Lexington Park? Taxes and other stuff included. I told her about 2700 a month.

At 7% P&I alone are $2600

 

[rdkarob]

She is paying $390K for a house in that neighborhood?

And no, I'm not a realtor.

It was originally 335 but they added a lot and are rolling in EVERYTHING!!!!

 

[rdkarob]

At 7% P&I alone are $2600

I don't know how anyone can afford that much!!!!!
We make more than they do and there is NO possible way I could pay that much.

 

[rdkarob]

She is paying $390K for a house in that neighborhood?

And no, I'm not a realtor.

I could be wrong with the neighborhood name but supposedly these houses are beautiful and pretty nice too. NO?