- Apr 12, 2011
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Looks like quite the project. Please keep us updated
Home Buying & Real Estate Thread
- Thread in 'General' Thread starter Started by TYE_The Time Traveler,
- Start date
- Jul 27, 2012
- 1,563
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That exposed brick is always a fave of mine.
- Nov 16, 2001
- 3,949
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What's "A decent amount" and where does she live? How much debt? How old is she?
- Nov 16, 2001
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Fannie Mae going with a no credit score manual underwriting loan.
Been calling for this for a LONG time. Didn't realize it's only been since 1995 that credit scoring for a mortgage became so ubiquitous.
Been calling for this for a LONG time. Didn't realize it's only been since 1995 that credit scoring for a mortgage became so ubiquitous.
- Feb 23, 2006
- 6,065
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How to they determine an interest rate for you? Or will they have standard rates for everyone?Fannie Mae going with a no credit score manual underwriting loan.
Been calling for this for a LONG time. Didn't realize it's only been since 1995 that credit scoring for a mortgage became so ubiquitous.
- Apr 12, 2011
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Does this mean a crash is coming soon? Im soo ready to buy on the way back up
- Nov 16, 2001
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I haven't read all of the details yet, but it will probably be some combination of assets, work history, & payment records on non-credit accounts.How to they determine an interest rate for you? Or will they have standard rates for everyone?Fannie Mae going with a no credit score manual underwriting loan.
Been calling for this for a LONG time. Didn't realize it's only been since 1995 that credit scoring for a mortgage became so ubiquitous.
- Jul 27, 2012
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http://www.ocregister.com/articles/percent-714878-credit-mortgage.html
There was no such animal as a credit score until about 1995. Well, it’s back to the future. Good going Fannie Mae.
On June 25, Fannie Mae will be rolling out the automation of a manual process for mortgage applicants without credit scores, according to Mindy Armstrong, senior product manager at Fannie Mae.
Here’s how it will work: A loan officer takes your application and runs your credit, but the credit bureaus Equifax, Transunion and Experian have no credit scores for you. This usually happens because you don’t have any or don’t have enough traditional credit (credit cards or auto financing, for example).
In the past, that meant that we loan officers were unable to qualify you for a loan backed by Fannie Mae. But in seven weeks, you will qualify, opening up a vast new array of borrowing options.
You are eligible for purchase as well for a no cash-out refinance loan if the lender can gather at least two pieces of credit information that covers the last 12 months. One must be a verification of rent. The other can be anything from a utility bill to on-time payments to your local gym.
You must put a minimum of 10 percent down (or have 10 percent equity when refinancing), all of which can be a gift. It has to be a single unit primary residence and, for Orange County, your loan amount cannot exceed $417,000.
Call me cynical, but I think credit scoring is just a “gotcha” way for creditors in general to upcharge borrowers that don’t have the very best credit scores.
“Thirty percent of bureau data is inaccurate,” said Stan Baldwin, chief operating officer at Garden Grove-based credit report seller Informative Research.
Where Fannie’s no-score gets ugly is the pricing. Fannie Mae is going to assume that your credit score is in its lowest allowable FICO score bucket of 620. That adds 0.625 percent to your mortgage rate for well-qualified borrowers.
“We price for the risk,” said Andrew Wilson, Fannie Mae spokesman.
Out of all seven mortgage insurance companies, so far only Radian and Arch told me they are willing to insure these loans.
Radian’s pricing looks very competitive compared to other standard mortgage insurance rates, adding 1.10 percent to your base interest rate. They also assume a 620 middle FICO score. Arch pricing was not available.
Assume you buy a $450,000 home and get a $405,000, zero-point 30-year fixed-rate mortgage at 4 percent, with a homeowner’s association fee of $350 a month. Your total payment with impounds would be about $3,159.
None of my piggy-back lenders (avoiding mortgage insurance by providing a 10 percent second behind an 80 percent first mortgage) will go behind a no-score loan. At a minimum, a 680 middle score is required.
Fannie needs to rethink their one size fits all pricing. They assume all no-score borrowers are high risk, just like the “before score” olden days.
They should consider job stability, cash reserves, and payment shock (industry jargon for how much your house payment will go up from your current rent).
Better risk borrowers deserve better pricing, score or not.
On June 25, Fannie Mae will be rolling out the automation of a manual process for mortgage applicants without credit scores, according to Mindy Armstrong, senior product manager at Fannie Mae.
Here’s how it will work: A loan officer takes your application and runs your credit, but the credit bureaus Equifax, Transunion and Experian have no credit scores for you. This usually happens because you don’t have any or don’t have enough traditional credit (credit cards or auto financing, for example).
In the past, that meant that we loan officers were unable to qualify you for a loan backed by Fannie Mae. But in seven weeks, you will qualify, opening up a vast new array of borrowing options.
You are eligible for purchase as well for a no cash-out refinance loan if the lender can gather at least two pieces of credit information that covers the last 12 months. One must be a verification of rent. The other can be anything from a utility bill to on-time payments to your local gym.
You must put a minimum of 10 percent down (or have 10 percent equity when refinancing), all of which can be a gift. It has to be a single unit primary residence and, for Orange County, your loan amount cannot exceed $417,000.
Call me cynical, but I think credit scoring is just a “gotcha” way for creditors in general to upcharge borrowers that don’t have the very best credit scores.
“Thirty percent of bureau data is inaccurate,” said Stan Baldwin, chief operating officer at Garden Grove-based credit report seller Informative Research.
Where Fannie’s no-score gets ugly is the pricing. Fannie Mae is going to assume that your credit score is in its lowest allowable FICO score bucket of 620. That adds 0.625 percent to your mortgage rate for well-qualified borrowers.
“We price for the risk,” said Andrew Wilson, Fannie Mae spokesman.
Out of all seven mortgage insurance companies, so far only Radian and Arch told me they are willing to insure these loans.
Radian’s pricing looks very competitive compared to other standard mortgage insurance rates, adding 1.10 percent to your base interest rate. They also assume a 620 middle FICO score. Arch pricing was not available.
Assume you buy a $450,000 home and get a $405,000, zero-point 30-year fixed-rate mortgage at 4 percent, with a homeowner’s association fee of $350 a month. Your total payment with impounds would be about $3,159.
None of my piggy-back lenders (avoiding mortgage insurance by providing a 10 percent second behind an 80 percent first mortgage) will go behind a no-score loan. At a minimum, a 680 middle score is required.
Fannie needs to rethink their one size fits all pricing. They assume all no-score borrowers are high risk, just like the “before score” olden days.
They should consider job stability, cash reserves, and payment shock (industry jargon for how much your house payment will go up from your current rent).
Better risk borrowers deserve better pricing, score or not.
- Jan 11, 2006
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I would pay 2 inspectors to look over the house you want. They might find a major problem before you are stuck with it. Would help lower the price or move on the next house. It would be a wise choice and could pay for its self.
- May 20, 2006
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Probably around $300k. Shes looking in the suburbs of minneapolis, $150k range, 1300 sqft preferably. Debt im not positive but it can be paid off beforehand if need be, maybe $10k. She'll be 65 next month. $30k downpayment ideally.
- Jul 27, 2012
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She'll be fine. With a $30k down payment that will bring the loan amount to $120k. At let's say a 4% 30yr fix rate, monthly payments are at $572.90 (not including taxes and insurance). Assuming she has $10k of debt I'm guessing her monthly payments on that is $200 or less, which should still keep her below a 50% debt to income ratio which will qualify her for a loan. Worse case, she can pay off the debt.
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- Nov 6, 2012
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Yeah also first time home buyer loans , she may be able to qualify. Check into those Frank.
- Apr 12, 2011
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Went to a local bigger pockets meet up today. It was good to talk with people who are like minded. Left really motivated to go get it.
datznasty
Supporter
- May 25, 2001
- 22,158
- 16,425
Any of yall mess with peel and stick vinyl flooring? Or I might even use a flooting floor or a laminate? Not trying to spend much money or make it look amazing, just want to create an are of separation where my weight room is in my 3 car garage, probably a 10x10 area, sit my bench, elliptical, and squat rack on it. Dude on CL has cut outs of the gym floor from a school that close recently that would work perfectly because it'd be like a platform but he wants too much
- Jul 27, 2012
- 1,563
- 1,828
Peel and stick vinyl will be the cheapest route. If you want something that looks and feels better, you can get laminate from Home Depot for .99 a sq ft
- Feb 14, 2007
- 21,621
- 18,678
Was just told yesterday by my Realtor that I should get an Oil Tank Sweep? WTF is that? 
B Sox
Supporter
- Mar 31, 2011
- 73,112
- 117,472
Helps discover/locate buried oil tanksWas just told yesterday by my Realtor that I should get an Oil Tank Sweep? WTF is that?
- Feb 14, 2007
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Helps discover/locate buried oil tanksWas just told yesterday by my Realtor that I should get an Oil Tank Sweep? WTF is that?
But is there any point to it?
If the previous owners lived there for ~20 years and they don't even know, what will it do for me?
- Oct 30, 2009
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Any people have any opinions on buying a house vs buying shares in a REIT?
For myself, a home just isn't practical, because I would want to buy in something that can easily be resold (good school districts, decent taxes, etc)
I feel like investing in a REIT makes more sense instead of buying a few single family homes for rental purposes because the excess cash from renting + equity could be better served investing in a REIT.
Any opinions on that?
For myself, a home just isn't practical, because I would want to buy in something that can easily be resold (good school districts, decent taxes, etc)
I feel like investing in a REIT makes more sense instead of buying a few single family homes for rental purposes because the excess cash from renting + equity could be better served investing in a REIT.
Any opinions on that?
- Nov 6, 2012
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I'd much rather actually have control over my investments in terms of RE instead of investing in a REIT.
Stock market goes down, my rental income is still coming in.
Stock market goes down, my rental income is still coming in.
- Jan 22, 2015
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- Nov 6, 2012
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@millenial I said market goes down, not crash. The market can be in a downtrend doesn't mean its a recession lol.
I'll just say this, almost all millionaires/wealthy people have Real Estate in their portfolio. I'm not going against the grain.
RE is the fastest way to build wealth, no debating that.
I'll just say this, almost all millionaires/wealthy people have Real Estate in their portfolio. I'm not going against the grain.
RE is the fastest way to build wealth, no debating that.
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- Jan 22, 2015
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REIT's historically don't have a great rate of return. By the time you're done paying the management company and other expenses the returns are below what you can get with index funds.
- Nov 6, 2012
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@millenial with 25 units I will be bringing in 5K/mo , 60K/year . I plan on purchasing 5 units per year to hit this mark in 5 years.
That's not a long time at all. Some people hit 25 units in 1 year lol .
My long term goal is 250 units by time I am 40, so I guess it really just depends on how serious you are with REI.
That's not a long time at all. Some people hit 25 units in 1 year lol .
My long term goal is 250 units by time I am 40, so I guess it really just depends on how serious you are with REI.
