Credit Check Finally PassedThe loan official seems to think my chances are good even though, by her own words, there's a current 'rush' on this type of loan because of the recent surge of bad mortgages. Luckily, thanks to this crash of sorts, the prices on pretty nice homes in rural areas here have dropped big time and there are more within the price range I can afford.
If all works out the outgoing bills I currently pay shouldn't change much cept for of course the house payment will be higher than my rent is now, but good news, I can easily fill in that gap if I stop smoking. (120 bucks a month right there) Also I have a promise to myself to keep, no smoking in the new house! lol
Anyways, just wanted to share this cause I know there are lots of people out there starting out, or others that just want a place of their own with a little privacy, whatever, just know there are programs out there that help you even in these troubled times and if there's a catch to any of it at all it's this, act now before the funding dries up! Not one, but two loan officers (man I've been on the phone a lot lately.. oi) told me to rush this as they are literally 'running out of money' and the next funding won't be available, if at all, until October of this year.
A little about the program:
It's for low income people only, so if you got a good job you're on your own or you must use a different program. For those of us with little money (me times a billion) it's a blessing. Through all my research this past almost full year now I've found a few grips with it however.
1. They are VERY strict on qualification... one little thing out of place and you're fucked. Mainly in the area of 'trustworthyness' or credit history. Understandable, but they are rather uncaring with you when you have even one mark on your history. So if you've not been ok as far as money goes for the past two years solid, they will not let you in the door usually.
2. Initial buying still requires out of pocket expense in the form of title fees and/or closing costs that the buyer usually does not have. Odd thing really, it's supposed to be for low income people yet they expect you to have a couple grand up front... so be ready to save before hand just in case. One good thing at least, there is no down payment required for a Direct Loan from them.
3. Not really a drawback in my case cause I'm on social security... but you must pick a home in a rural area. YAY! Dream come true for me, but if you must drive to work or you have kids that need to go to school and such things, it's sortof a deal breaker to be out in the middle of nowhere. (not always, but many of the homes are) As long as there's a Walmart nearby I'm good... lol
4. Also not a drawback, but the person that inspects the homes here to allow them in the program is very picky on what to allow, so this thins out local home choices a bit. They literally get under the house and check for even the smallest foundation cracks, previous roof leak issues, etc etc. Personally I like this, it makes more certain the home is move in ready and will last you a very long time, but like I said, it can thin out home choices in the area when fewer pass the initial inspection.
5. House availability! As you can imagine, even in this market, they don't grow on trees. So even when I finally am able to pass qualification, the waiting game begins for that house that passes inspection and is in my price range.
6. Home prices. For a program made for low income people, it seems odd there are more than a few listings for homes with prices beyond what I myself would even call low income in order to be able to afford the monthly payments. I wish they would tweak the system (new Prez. seems to be wanting to) so that less 'more well off' people and more actual 'low income' people could get their first home.
7. System is very slow, but that may be due to the recent rush on them from so many needing a home. They are very busy these days indeed. In other words, be ready to wait in line big time as they don't rush anything through cept in rare cases when it's a family with children and they currently have NO home at all. Understandable that they should get to cut in line.
Well like I said, I've read a lot on it, but am surely not the expert on the matter. I can only base my chances on what the experts have told me and the educated guess I have enough knowledge to make. That guess now would be a 50/50 chance with the only real hurdle left being the income amount:house price ratio.
If you want to learn about the program you can read up on it here:
[link]
Property listings of currently available homes:
[link]
If you are needing a home and are on the lower end of income, I advise you to start saving and begin the process NOW NOW NOW. Be advised however that any bad marks on credit or judgements against you on your credit report... or even being late on payments for bills of all kinds more than a few times... will blast you right out of the water. So check up on that credit report ASAP. You can do so once a year for free here, and you can do so at three of the main credit reporting agencies!
[link]
It's completely free, unlike that one with the commercial on TV. Just be careful, sometimes the 'no thanks just give me my free credit report' button is very small or at the very bottom of the pages.
So that's it then, don't give up on your dream no matter what those around you say, and always remember... there is no such thing as luck, good or bad. There is just you, and what YOU do with your life and how you react to things others do around you. To a lesser extent I'll add that I believe God helps as well, but He does NOT do it all for you. Don't expect it to just be handed to you is all I'm sayin. Sometimes we must wait, but when it comes to the choice and motion, we gotta get the ball rollin, after that, God keeps it goin.
Nuff said, hope everyone is doin great and have a nice day. ^^
Joy
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