Purchasing my first home (subprime lending)

[Quinn Warren]

I could really use everyone's help here. I am a complete idiot. Right now, I am desperately trying to get into a certain property. I really don't want to go the route of a subprime lender, but I fear I may have no other choice.

The facts (good):

The home is listed at $132,000

I have a good job that would allow me to pay ~$1000/mo which would be 28% of my income.

I have one other bill, and that is car insurance. My car is fairly new and paid for.

I have a guaranteed roommate who will be paying $400/mo in rent.

I have a co-signer ( I'm not sure if this will do any good if they can't prove they will be living with me. Is this the case?)

(bad)

My credit is poor (I have little debt, but no good accounts established.)

My job was recently acquired, and for the past year I was traveling the country playing poker.

Would it be wise to get a subprime loan and about a year into it, refinance with a real lender? I believe paying on the sub-prime loan for a year would do wonders for my credit.

Is this a possible scenario? Can anyone offer some advice? This property could very well see it's value skyrocket as the city has recently planned a major redevelopment in the area next year.

[superadvisor]

"Would it be wise to get a subprime loan and about a year into it, refinance with a real lender? I believe paying on the sub-prime loan for a year would do wonders for my credit."

This is one of the main reasons people get a sub-prime loan.

[AggroFish]

if you have 10 percent down and a way to verify your income, no problem.

bad credit, no down = problem

The subprime market has gone through major changes over the last few months and it's more difficult to qualify then it used to be but it's still pretty easy.

As far as a co-signor, you can use someone with good credit, i.e. family member to go on the loan with you as a non occupying co-borrower.

[VeryTnA]

What state are you in?
Work for a big sub-prime lender and handle mortages in several states.
PM me....

[Phone Booth]

[ QUOTE ]
I could really use everyone's help here. I am a complete idiot. Right now, I am desperately trying to get into a certain property. I really don't want to go the route of a subprime lender, but I fear I may have no other choice.

The facts (good):

The home is listed at $132,000

I have a good job that would allow me to pay ~$1000/mo which would be 28% of my income.

I have one other bill, and that is car insurance. My car is fairly new and paid for.

I have a guaranteed roommate who will be paying $400/mo in rent.

I have a co-signer ( I'm not sure if this will do any good if they can't prove they will be living with me. Is this the case?)

(bad)

My credit is poor (I have little debt, but no good accounts established.)

My job was recently acquired, and for the past year I was traveling the country playing poker.

Would it be wise to get a subprime loan and about a year into it, refinance with a real lender? I believe paying on the sub-prime loan for a year would do wonders for my credit.

Is this a possible scenario? Can anyone offer some advice? This property could very well see it's value skyrocket as the city has recently planned a major redevelopment in the area next year.

[/ QUOTE ]

What do you mean your credit is poor? The only way your credit would be poor is if you screwed up at some point. Not having credit history does not equal having poor credit. And how much can you put down or do you need 100% LTV?

[emon87]

[ QUOTE ]
What do you mean your credit is poor? The only way your credit would be poor is if you screwed up at some point. Not having credit history does not equal having poor credit. \

[/ QUOTE ]


This isn't really true. As far as qualifying for loans and getting the best rates, you need to have a good history.

[Phone Booth]

[ QUOTE ]
[ QUOTE ]
What do you mean your credit is poor? The only way your credit would be poor is if you screwed up at some point. Not having credit history does not equal having poor credit. \

[/ QUOTE ]


This isn't really true. As far as qualifying for loans and getting the best rates, you need to have a good history.

[/ QUOTE ]

Not getting the "best" rates does not mean you're doomed to subprime lending. And qualifying for loans doesn't require anything close to a good credit history.

To OP:

What's your FICO score? 550-620? 620-670? 670-720?

[Quinn Warren]

I have a few marks on my report including a student loan ($2000 6 years ago) and a defaulted credit card balance ($500 6 years ago). My median score is ~ 590.