Wanting a Home but need help w/ Credit Cards

SharkbaitHoHaHa · 01-18-2004, 12:08 PM

My husband and I have been nedding some help with our Credit Cards so that we can get a home loan for a Manufactured home in a nice neighborehood. We have 6 credit Cards and 4 of them our store credit cards. We can not seem to find a place that will give a nice loan to pay off all the Credit Cards, cut them up and not ever use them again. Our bank will not give us the credit because we got to many store credit cards. If any body knows of a place in Portland we can go to get a good personal loan to have one payment it would be nice. We have tried using the Solutions (debt counsling) but one probelm our bank said that having that on our credit Report looks worse than having the credit cards. We are also wanting to get a Manufatured home in Johnson City but we a confused on how to go about getting a loan or if any one will give us one. We really want to get out of our apartment. Moving to a place that has more room would be kind of weird for me.
When we do get this home with the Lord's help. We hope to have some money to get some better funrature for the living room and dinning room. What we have would not do at all.

If any one knows of place where ae can get a good personal loan that will work with people that have poor credit and maybe a places we can find a good home loan. Thank You

jokester · 01-18-2004, 03:05 PM

I don't know of anyone around here right off the top of my head, but i'll definitely be praying for you that God provides.

-jokester

letsfish · 01-18-2004, 10:03 PM

I will be praying also. But think you could profit from some classes that Portland Housing Center(its on Sandy Blvd) sponsors on homeownership, financing, an dealing with debt.Many banks will want you to take these classes anyway to qualify for some loan programs. Give them a call and sign up.

Redbull · 01-19-2004, 06:38 AM

Jim,

That is sound advice. And 'yes,' some lenders do 'frown' on some of the counselling companies.

Just FYI, almost on a daily basis, lenders are backing away from the manufactured lending market. Our company won't do them any longer. The risk has become too great.

Your intentions are awesome. Your actions will require hard work, focus, patience, persistence, dilligence and discipline - but it's well worth it.

OceanBlue · 01-19-2004, 06:55 AM

I wonder what would happen if you closed the accounts first, then approached a lender for the personal loan to pay them off. As long as they're open, the lenders see that you could charge yourself out of the ability to pay the loan and the new charges on the cards.

Dunno but it's worth a shot.

Also, if you are not already a member of a credit union, try joining one. Usually only costs about $5.00 to open an account and their lending practices are a little more liberal.

Good luck to you!

SharkbaitHoHaHa · 01-19-2004, 03:24 PM

[ 01-19-2004, 04:26 PM: Message edited by: SharkbaitHoHaHa ]

DAB · 01-19-2004, 03:37 PM

Joyce,
You know you Mother and I are praying for you.
DAB

happybrew · 01-19-2004, 04:08 PM

Praying for you. I was in a similar situation, needing to buy a home, but not having enough income. When interest rates dropped, it was tight, but we did it.

Things my wife and I learned:

1. A credit limit is considered the same as actually having the loan. Consolidate and close as many accounts as you can. If you get one of those 0% offers for a credit car, read the terms carefully, then transfer balances on a couple of the store cards, then close them. That is a last resort, if you don't find a debt consolidation loan, and you're giving yourself a year to get into a house.

2. Manufactured homes don't have the resale value of a stickbuilt home, and you're at the mercy of your landlord. Repossession rates are through the roof on manufactureds. Some of them can't be financed by a conventional loan, either, which would make it hard to sell later on. If you buy a manufactured home, assume that you're going to lose a large part of your investment. If you can, get into a stickbuilt house that isn't so nice as the manufactured home, with idea of using the equity to get into something nicer in five years or so. You'll be in a better position several years down the road. Part of the problem with getting a loan may be that you are looking at a manufactured home. You may have better luck getting financed on a stick-built home, as the risk for the lender tends to be substantially less, even though the loan amount is generally higher.

3. Don't be hasty about accepting a loan, or about buying a house. If you wait, you can always find a better deal. A motivated seller will often significantly drop the price in order to sell quickly. Same thing with loans. When we bought our house last year, we got into a nice one that met our needs that we bought for $5000 under the appraised value. I cashed in two years worth of vacation for the downpayment, and had $8000 equity without spending a dime. It takes patience, and a willingness to let go of what you want. A very wise man once said "Don't plan. Be led." If you and your husband allow God to lead you, instead of making your own plans, things can happen. That doesn't mean don't act. By all means work toward your goal, but be willing to change the direction.

4. Don't forget about closing costs when figuring out your home-buying budget. That can be a real deal killer. Factor those in, and assume higher rather than lower.

happybrew

SharkbaitHoHaHa · 01-19-2004, 05:56 PM

The reason we are looking into a Manufatured home is that getting a regular home is just to much for me. I can only affored 350 for lot rental and 350 to 400 for payment on a loan. You can not find a good home with 3 brd/1 bth for 750 dollers a month.

Thank you for who ever gave me the idea of closing my accounts so that it looks better on a credit report.

Thanks for the prayers. It is what ever God wants us to do but we are giving everything in the Lord's hands. I know I can not do this by myself.

SharkbaitHoHaHa · 01-19-2004, 05:59 PM

I also do not have five years to wait. I am in a aprtment place that I feel is getting worse to live in by every year we live here. I want to get out before Daniel's 7th Birthday and that is next year in 2005.

Cool Texan · 01-21-2004, 05:47 PM

Shark, I dont know of any resources to help with debt consolidation loans, though I'd imagine that any bank could help you.

That said, while I dont do personal financial planning (corporate planning is my gig), I do understand budgets and have helped a few of my friends get their budgets in order. I'd be more than happy to give you a few ideas/suggestions to help reclaim your budget if you want. Feel free to PM me.

Fish Tales · 02-19-2004, 08:43 PM

Joyce before you get really caught up in trying to buy a mobile home in a park. You need to know that these parks have tons of restrictions and they still control the rent what's 350 today could be 450 in 6 months and you have a home you can't move so you could wind up trapped or loosing everything. There are government programs out there that cater to first time buyers that can get you into an affordable house you just have to get your name on the list and wait your turn. In the meantime move into a duplex, that will give Daniel room to play and you can get your cards paid off while waiting.

Boatramp aka Paul Redmond

cannonball · 02-19-2004, 09:31 PM

Lower your debt and close those store cards as quickly as possible, happybrew has good advise but proceed carefully.

Look around the area you want to live in, perhaps there is a place for rent that a landlord would let you have an option to purchase, often the owner will carry the contract on these properties. For sale by owner homes are also good targets for owner financing.

Look for property you can build equity with, this is very hard with most manufactured homes unless signficant property is attached.

Find a fixer upper then fix it up, your hard work and love are worth big $$$$$.

Also, Explore Habitat for Humanity, no handouts here just alot of great people helping you build a home.

GOOD LUCK

[ 02-19-2004, 10:39 PM: Message edited by: cannonball ]

Gus Orviston · 02-19-2004, 10:22 PM

Listen to Redbull's very sound advice, Also, send TheRogue a question on this topic. Purchasing a fixer up would be a great solution, and provide more opportunity for your investment to grow and even more with sweat equity.

best of luck! gus