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Author Topic: Yoo Hoo - Finance Questions Please Help  (Read 4883 times)

Offline calilove11

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Yoo Hoo - Finance Questions Please Help
« on: July 15, 2010, 11:06:34 am »
Hey -
There is a grant available in my area that will pay up to 50% percent of the purchase price of the home that I choose. It's like a silent loan. Well the problem is that I have no credit score. One car loan that i was a cosigner on with my mom thats paid off and a couple of bad things. But no score. I really would like to take advantage of the grant program. Also get the california tax credit, which is fading fast. But I'm not sure if I can find a loan. I had been looking into hard money loans a while back, my friend and i were gonna try to rehab and flip houses. So now I'm thinking that might be my only option. I know that a lot of them use the real estate as collateral and since they are only borrowing me 75,000 for a 150,000 dollar house I'm thinking they might give me a good deal. I'm frustated and keep giving people money for credit checks only to find out they cant help me!!!! Any ideas??
« Last Edit: July 15, 2010, 11:14:38 am by calilove11 »

Offline Mdhaas

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Re: Yoo Hoo - Finance Questions Please Help
« Reply #1 on: July 15, 2010, 11:25:22 am »
Welcome!

Quote
Any ideas??

First off quit wasting your money on credit checks.  At this point I am sure that no one will be able to change what you already have. Each inquiry actually makes it worse.

Quote
I know that a lot of them use the real estate as collateral and since they are only borrowing me 75,000 for a 150,000 dollar house I'm thinking they might give me a good deal

Hard Money lenders are short term lenders. So unless you have a means of paying them off in a few months, this is not an option. They are in the business to make money, so unless you know one, the odds of a "good deal" are slim.

Do you have a family member that you could partner with?
« Last Edit: July 15, 2010, 11:26:59 am by Mdhaas »
If at first you don't succeed.....................skydiving is not for you

Offline calilove11

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Re: Yoo Hoo - Finance Questions Please Help
« Reply #2 on: July 15, 2010, 11:53:20 am »
Good thing you brought that up! I was thinking about refinancing as soon as possible. I am already in the process of paying off the bad debt off and build up good credit. I just dont want to miss out on the opportunity of the grant and also the first time home buyer tax credit. Which means I would have to start now.

Offline yrush2000

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Re: Yoo Hoo - Finance Questions Please Help
« Reply #3 on: July 15, 2010, 12:55:56 pm »
what kind of bad debt are you paying off.  I ask because many people do not know you can turn bad debt into good debt tradelines if you chose to pay them off.  Make it part of the negotiating process with the creditor and ask for it in writting to have the tradeline adjusted to R1 rating or I1 depending on type of line and wipe out all late notices or ask for a hard deletion letter which means the tradeline will be delete permanently.  With the letter you can send it in as proof the line should not appear but getting a R1 or I1 is much better.  Account should just say Closed by creditor/consumer.


If your paying off collections, ask for a deletion.  Even a paid off collection account has a negative impact on your score.  You want it delete for good.

Also when offering pay off, if you can do it in one lump sum try it.  Offer 20 cents on dollar 1 lump sum if you have it and go from there upto 3-6 monthly installments but a large 1 time payment.  Creditors all want something.  Once the fiscal year ended they wrote the debt off so its merely profits now after claiming the losses.
« Last Edit: July 15, 2010, 12:57:56 pm by yrush2000 »

Offline calilove11

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Re: Yoo Hoo - Finance Questions Please Help
« Reply #4 on: July 15, 2010, 01:11:09 pm »
One of them is a credit card and the other is a problem I had when renting an apartment with roomates.  Well if its gonna help me get somewhere I will talk to them. There is no way I could pay the credit card debt off in full but the apartments I can. I think I'm just gonna apply for a hard money loan and see what I can come up with. I just dont know what to tell them.


There is so much information on this site.

Offline Mdhaas

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Re: Yoo Hoo - Finance Questions Please Help
« Reply #5 on: July 15, 2010, 07:41:48 pm »
Quote
I think I'm just gonna apply for a hard money loan

What is your plan to repay this loan?  As I mentioned earlier, a Hard Money loan is not like a mortgageor home loan.

Here is the REI Club definition:

Hard Money Loan - A loan that is underwritten with the condition and value of the property as the primary criteria for approval. Secondary issues may include the credit of the borrower, the ability of the borrower to repay the loan and/or the ability of the borrower to manage the property or successfully complete a rehab and sell the property. Owner occupancy, debt ratios and other issues are seldom a factor. Appraisals rather than purchase prices are used to determine value. Cash out purchases are often allowed and are another key benefit. These loans are usually approved within days and are often funded in two weeks or under with times as short as two or three days not uncommon. The cost for the benefits of speed of funding, lax underwriting and other advantages is typically a moderately high interest rate (usually low to mid teens) and high points (usually 5 to 10).

If at first you don't succeed.....................skydiving is not for you

Offline calilove11

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Re: Yoo Hoo - Finance Questions Please Help
« Reply #6 on: July 16, 2010, 09:55:18 am »
Well like I said I was gonna refinance once i can get my credit score up a little bit. I think its 620 for an FHA loan. I was hoping to refinance within 6 months to a year. I feel rushed because I'm not sure when this grant money is gonna run out and I was hoping to get the California First time Home Buyer Tax Credit. These are the things that I would really like to take advantage of. Hard Money Loans Feel like the only thing that I can get my hands on right now so that I dont lose out on the grant money and tax credit??  Does that make sense?? 


I am kind of rethinking this whole thing now tho. With the grant they want my payments to be about 500.00 a month? With a high interest rate for 75,000.00 I dont think that my payments could be that much. I'm probably gonna wait I'm young and getting way to far ahead of myself. It's just one those things you dont want to miss out on.

Offline Rastusracing

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Re: Yoo Hoo - Finance Questions Please Help
« Reply #7 on: July 18, 2010, 08:53:35 pm »
Hi Calilove
I agree with what yrush2000 had said. I have had success with these very techniques myself, however there is no guaruntee that the creditors will do this.
What I would do besides what yrush2000 has suggested is, see if there are any family members that you have that would add you as a authorized user on some credit card accounts. By doing this, your score has the potential to instantly jump based on the fact that you now get the benefit of their credit history on those accounts.

You will also want to establish some good credit, so one method is to go to your local bank and open a secured credit cad type of account. Revolving credit will give you the fastest increase in your score versus an installment loan. By opening the secured credit card line, you can get extremely low rates on them and once paid back, you have established a savings account for yourself as well.

Typically it takes 3-6 months worth of payments on a new revolving account before it has a positive effect on your credit score. Also keep your outstanding balances on revolving credit no higher than 30% of the high credit limit. Revolving  credit with a balance higher than 30% of the limit will start to hurt your score a little, so just be sure to pay your balances down below 30% prior to applying for new credit.

As a mortgage banker, I have access to rapid rescoring reports in which it will detail the exact moves you must make and give you the exact dollar amount as well, and if you do this it will raise your scores a certain amount. Sometimes a decent increase. You can get this done in as little as 3 days once you have completed the work that the report tells you. I do this all the time for my clients.

Good Luck.

Kevin Romines
Insurance Agent
Country Financial
Olympia, WA 98501

Offline calilove11

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Re: Yoo Hoo - Finance Questions Please Help
« Reply #8 on: July 19, 2010, 09:23:58 am »
My mom has almost perfect credit. She could add me on one of hers. I have not tried talking to the creditors yet. I'm paying one of them off today. I got it down to half price of what it was originally owed for.  Hopefully I can get a deletion. I have thought about the secured card thing. I think that is my next step. Rastusracing... How much do you charge for your service??

 




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