new job/old one is going under,need mortgage in MI, fair credit,0 down, have 3K/closing/ whats the chances?

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I have found a house that we like(first time buyer). Wife can’t be on loan, she had foreclosure prior to marriage last year(lost her job),back in college. We moved back to her home town, so I took a job with co and they are in trouble(many layoffs). I have a chance for a new job offer but credit is only hittting 600 (all clean,had slow pmnts due to layoff last yr at this job). We only have a few thou to wrk with and would arbor mtg be a place to get decent loan? Fannie mae? help here plz. We have to move soon in 90 days and don’t want to get in the rent merry go round. that saps your savings and you can’t have pets(have 2dogs/ cats) I don’t want to get rid of pets wife would be devastated. We found a house that has great backyard and space for family. we are worried about losing any$ for appraisal and it falling thru due to all the foreclosures around area (house is only 60000)/ needs minor repairs. What would be a decent offer/on busy street/older neighborhood/ some urban blight

  1. Reply
    Ron da Don
    May 2, 2011 at 1:08 am

    Fannie/Freddie 100% programs are drying up fast – the mortgage insurance companies are pulling out. Check out your state’s Housing Finance Agency for first-time home buyers. With 600 scores, it’s going to be tough. 97% programs are still around… for now. FHA might be an option. You would need 3% down, but it can be a gift. Plus you could get a seller concession for the closing costs. Gone are the days of easy money in the mortgage market…. for now anyway. To buy a home, saving at least 5% for the down payment puts you in a much better position. And the first step with your credit… do what you can to get your score above 620 as soon as possible. On a Fannie Mae approval with scores less than 620, you’re going to have a higher rate or you’ll need to pay more points. Good luck.

  2. Reply
    Pat B
    May 2, 2011 at 1:58 am

    I don’t know where you are located, but Rural Development Loans are a very good option right now. Check with a reputable loan officer and see if they are available in the area. They tend to concentrate on debt to income ratio and credit history rather than credit score. The fact that you had slow payments may be able to be explained since you were laid off, but that is something only a mortgage agent can tell you.
    Not only do you need the pre-approval, you should also ask what the terms of the program you are pre-approved for. FHA and Rural Development have certain livability requirements for the property you are looking to purchase, but they aren’t as stringent as most think. Talk to your mortgage agent about this so that if you are considering a property, you will know what to look for as far as what repairs will need to be made prior to your appraisal.
    Once you have your pre-approval, talk to a realtor who works in your area and who is knowledgeable about the mortgage program you are going to use. He or she should be able to show you homes that are within the criteria that has been set.
    The realtor should be able to help you answer the questions regarding the offer, whether or not the neighborhood is stable, etc.
    Your job situation may be the straw that breaks the camel’s back as far as obtaining financing right now, but you will never know until you try. I am not familiar with Arbor Mortgage. Questions to ask to find out more about them are: how long have they been in business, what programs do they offer, and more particularly, how long has the mortgage agent that is assigned for you been working in the mortgage business.
    Don’t forget to look into the taxes on the property you are considering – make sure you include the water/sewer bill each month – some communities in Michigan have ridiculously high charges for water and sewer.
    Don’t get into something marginal – make sure you can afford the payments without struggle. Better you take the time to get your credit up while you rent. You should be able to find an affordable rental that will allow you to keep your pets. You have lots of time to look and resettle your life.

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