September 22nd, 2007

Acquiring a bad credit loan, may be the …. (las vegas lowest home equity line)

Posted in Bad Credit Mortgages, Green Valley Home Equity Line, Green Valley Lowest Mortgages, Green Valley On Line Home Loan, Green Valley On Line Mortgage by Admin

Acquiring a bad credit loan, may be the first step to rebuilding your credit.

There is a risk of the interest rate being considerably higher when the mortgage comes up for an interest rate review.

Resolved Question: Is it ok to get a loan for 180,000 when the home is selling for 169,000?
It’s an FHA home loan and we are supposedly having to get it appraised for more then it is worth. I know we only had to put 500 dollars down for escrow/earnest money but I am wondering what are they going to do with the other eleven thousand? I am a first time homebuyer with really bad credit so I am really thankful for this. IT does all seem on the up and up I just don’t understand a lot of it. I know it is not one of those subprime loans and we get a 7% interest rate and our mortgage payment will be 1400.00 a mnth including pmi home owners insurance and tax.

Credit For Buying A Home Not The Same As Credit For Buying Cars

Forget what you’ve been told about credit. Qualifying for a real estate purchase requires different credit than automobile financing or retail credit.

You may be shocked at some of these tips because this information runs contrary to what other so-called credit experts tell you.

Common Credit Myths

1. You need to pay off your credit cards

2. You need to close credit accounts

3. You need perfect or good credit to buy a house

Credit Facts

1. Paying off your credit cards lowers your credit score

2. Closing credit accounts lowers your credit score

3. You don’t need perfect credit to buy real estate

Why not pay off credit cards? Because paid-off credit cards do not compute in your credit score. Real estate lenders like to see open, active accounts with low balances.

Why not close accounts? Closing accounts before the payoff often costs consumers more money because credit card companies raise interest on closed accounts.

You can buy real estate with poor credit, but you will save thousands in loan costs if you maintain good credit. A bad credit report leaves home buyers with non-prime loans which have higher point charges, prepayment penalties, and higher interest charges, which therefore cost more money. For instance, a mortgage loan of $150,000, 30-year, fixed-rate mortgage, interest rate of about 5.72 percent costs around $870 a month; poor credit scores raise the interest rate over 9 percent and the payments over $1,200.

As you see from these payment differences, good credit means that you can finance a more expensive house with the same income, or save $330 each month.

Credit Requirements for Mortgages

Credit needed to buy real estate is not the same as good credit. Besides your credit score, mortgage lenders consider your debt-to-income ratio and other credit matters, unlike other credit grantors. Your debt-to-income ratio is the comparison of mortgage payment, including taxes, interest, and insurance to your total gross monthly income. Real estate lenders also consider your employment qualifications and your overall debt ratios.

Understanding the difference between good credit and the credit needed to obtain real estate financing helps you buy houses!

About the Author: Jeanette Fisher, author of Credit Help! Get the Credit You Need to Buy Real Estate, Doghouse to Dollhouse for Dollars and other books, teaches Real Estate Investing and Design Psychology. For more credit articles, tips, reports, and newsletters, see http://www.recredithelp.com

However, interest only mortgage recovers these temporary reductions by hiking up your monthly mortgage payments for the period after that.

Bad Credit Mortgages

Ron Rowan — MAP Testimonial