Question by Brian V: Are there any Federal Programs to low income/ disabled people get affordable home loans?
We need some financial aid fast, pilule patient or we’re going to lose the house we’ve been living since 2010! Help!
Best answer:
Answer by Cathi K
Go to your home lender. Maybe HARP. If you do not already own a home you must qualify just like anyone else.
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Question by Don: Income vs. Auto loan amount?
I am 19 and will have around a 700 FICO score after I pay all my credit cards off at tax time. I have had a full-time job for over a year now and make $ 9.25/hour. That puts my monthly gross income around $ 1, symptoms 600. I am currently living at home with no housing expenses. I know most banks have a minimum income requirement of $ 1,500, but I am wanting to get approved for a maximum $ 12,000 used auto loan. I would like to carry the loan out over 60 months which would make my payment lower than I am paying now for a car payment. I would make sure the car I would get should have a great Loan to Value rate and would be reviewed highly. Is that good enough to get my loan?
If I need a co-signor, the only one I have makes about $ 27,000 yearly, but only $ 300/week is verifiable via paystubs (she is a waitress). Her credit score is about 630. Would that be enough to raise the combined income to get approved if I would need a co-signor?
Best answer:
Answer by Inquisitive125
Congratulations on being so diligent in your research! If only more people would do what you’re doing. I would suggest that you wait approximately 90 days after paying off those credit cards so you can be assured your credit score has had the positive effect.
Secondly, visit a credit union near you (you can find one a www.ncua.gov in the Resources for Consumers section) and get pre-approved for a loan. This will give you more bargaining power in negotiating the price of the new car since your pre-approval amount is the maximum you can spend. (For more info on bargaining for a new car visit www.clarkhoward.com. He has some great advice and tips!)
Is the co-signer related to you? If not, don’t bring someone else into your finances. Stand for your loan yourself as you may not be able to count on that person in the future to assist with the payments. ( A co-signer is legally obligated to make the payments just like the main borrower!)
Also, check with the credit unions in your area to see if they have any good repossessed vehicles. You’ll be pleasantly surprised at what’s available. The only caveat is that you will be buying the vehicle “as is” so you’ll want to get it checked out by a reputable mechanic….there’s no returning the vehicle because of problems.
Good Luck!
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I was in your situation about 7 years ago, except I was a wee bit older. I found the car I wanted, then I got a loan from an major bank (later merged with B of A) over the Internet at a very reasonable rate for a used car (I think it was 8.5% back then over 60 months) and the loan amount w/ no down payment came out to be at about $ 13500, including all fees and taxes and such. Just paid it off not too long ago.
I see no problem for you to get a loan. Auto loans have relatively low risk as they can always repo the car. The trick is to shop around. Ask your current bank, and check rates on the Internet, such as LendingTree.com, and your local credit union(s).
The dealer is probably the WORST place to get a loan. They quoted me like 12% interest, I showed them the check I got in the pre-approved loan package and said if you can beat this offer I’ll go with you, they didn’t even try.
I would not worry too much about the loan to value ratio. For a used car the ratio is in your favor. It’s the NEW cars that fall in price the moment they leave the showroom, and those people end up with “upside down loans”. Used cars already passed that step and the ratio should be favorable to you, esp. if you keep up the upkeep. 🙂 Some people love to see a nicely annotated maintainence book, others don’t give a hoot.
Try to look for a loan yourself first. I personally don’t think you’re going to need a co-signer, esp. if you’re a hard worker. Worry about cosigner when you ran out of prospective banks and CUs.
With around a 700 Fico score, you should be able to get approved for a decent interest rate. I would not take on a co-signer. Her score is lower than yours, so it probably wouldn’t do any good. Usually a co-signor is used when your credit is lower and you can piggy back off from somebody else’s good credit. Also, you currently have no housing expenses. Do you plan living with your parents for the next 5 years? If not, will you be able to afford living expenses + $ 12k loan + insurance? You really should try to get something less expensive, around $ 5k and save up to pay for it outright.