r/HomeLoans

Hello all!

Trying to get some real world answers before I pursue or actually get ahold of the realtors again. My current story/score. I’m 33, single, self employed and own a service business that’s been in business for 7.5 years. Yearly gross is around $360-590k depending on year, mid 400s is more average. My credit score is presently 639. I currently own my present home outright and have lived there for 10.5 years. I bought it outright back then and overhauled it using cash. That said, I’ve never had a mortgage or a home loan so I should still qualify for FHA. My vehicles paid off 7-8 years ago and I only have a nine month old credit card active on my credit, $400 limit. I have a 11yo Capital One account that I’m paying off (more later on that). I have two open loans, one for a skid steer and one for an equipment trailer, both total $940 month but are not reported to the credit bureaus. My only other debt is $1800 month to a commerical building that is my shop/warehouse.

Past history; In January 2023, life was good lol. I had two credit cards, a $5k limit capital one sparks business card, and a $11k CO quicksilver card. Only used when needed. My score was 710 then. Same business model, same income but I was only about 3.5 years in. We were being moved out of the building I was renting (no fault of mine, he sold the property). I had to get a building for business fast, so I applied for a $248,000 loan to buy a small home, with a 30x60 building and 3 acres. Denied by two lenders. There was no reason given other than “criteria not met” from one of them, the other I don’t recall but it was something along that line. Me moved into the new building that I rented and still have today, and that wintertime move took its toll on my crew. Granted, they started wanting time off and we had projects backed up and ultimately it ended up being a total team walk out. That’s a long story in itself, but I’ll spare the details. I ended up maxing out the credit cards to stay afloat, had over $27,000 in vendor debts, refunded deposits on projects and much more. I nearly went bankrupt. I spent the remainder of 2023, 2024 and 25 paying off and settling the problems caused in a 30 day period by my former crew dipping out. Granted, all this aside, none of it affected my credit score besides the cards as that was the only thing I had debt wise. Everything else was private or charge account with supplier type debts that had no credit ties, verbal etc.

Result/conclusion; The $11k quicksilver card, I couldn’t never get it caught up and it “charged off” in mid 2024. Afterward I was able to pay the $5k card off and then they closed the account because of the late payments. The quicksilver card went to collections but by then I had enrolled in a debt relief. It’s being paid on slowly and as a result of the litigation, it was removed as a charge off from my credit report and reopened, shows as an open account again. The charge off has not hit it again and fact that the balance reduces its been driving my score up, along with the current $400 card I have. Everything else has fallen off my credit report. My last loan application was November 2022, besides the credit card I’m approved for.

I spoke to a realtor at beginning of this year after I was checking prices in the area I want to buy in. I explained my entire situation and she seemed to think I could get a loan now, but I also know realtors will do whatever it takes to get your signature on something to make the sell. I’m just a number far as they’re concerned and one of 500 applicants. Given all the information above, how likely would it be that I’d actually be approved? I can do up to $10,000 for a down payment, maybe more. The properties id want/looking for my needs run in the $250-300k range, often less. The $1800 for the building I rent would go to the mortgage as I’d begin moving from there before the ink on paper was even dry lol. So in hindsight the debt ratio wouldn’t really be changing. The current home, my parents will move into and rent and that’s the plan, I’m not selling that.

Sorry for long post, but I wanted all opinions and outcomes on the table. Thoughts?

TL; DR Single male, sole proprietor LLC owner. No other income. $400k ~ less year gross, $10k or so for down payment. Credit score 639, no reported debt besides a credit card

Please be honest and tell me if you think I could get approved.

I’ve always rented, but I’m wanting to buy a house in the future.

I’ve thought about talking to a loan officer to see what I’d be qualified for just so I can start looking in my range.

But I’m terrified to do that step because it will hurt my credit?

Useful information:

I have about $7000 in student loans (no car payment- bought it in cash years ago)
I make $120,0000 a year. Good solid job but I’ve only been there a year. (And I can’t work from home so I have to be within 1 hour one way commute to be able to see my kids for a few hours at night. The job is in Alpharetta).

My credit card debt isn’t bad- about $5,000 from a few hospitals scares. I’m keeping up with payments since my rent is so cheap (1,000 a month).

My credit score is 745.
I have only 11k saved so far, but I’m working on it. I don’t have family or friends who could help with the down payment.

I had terrible credit from years of financial abuse I escaped from. It’s been only about 2ish years since I’ve had a number above 500. But I’ve kept consistently in the 700s for the past year.

I’m not a veteran so I don’t qualify for any veteran discounts. I think I make too much to qualify for any first time buyer discounts.

What is the likelihood of being approved for $400k loan?

I want to be realistic and only plan for $200k, but I live in Atlanta, where housing is crazy expensive. 200k will get you a dilapidated moldy house 2hrs from anywhere. I need at least 3 bedrooms bc kids but I don’t care if it’s outdated and old. Just that things aren’t falling apart and there’s no mold. My expectations are pretty low. I’m a single mom, so a relatively safe area would be nice.

What’s realistic? I want to know what is possible and what is false hope.

My rent is cheap bc I live in the upstairs part of a lady’s house. It has a kitchenette but no stove or oven so I just microwave everything… not really sustainable but oh well. It’s also really tight so I just leave a lot of my stuff in suitcases or boxes because there’s not a whole lot of room. Psychologically I feel like I haven’t left my financially and emotionally abusive ex bc I’m just in survival mode and I want to be settled somewhere. I want to unpack. My land lady also has some strict rules that’s been a struggle like I can’t walk around my area past 9pm- I have to physically be in bed. Because she will wake up if she hears footsteps. So I feel like a little kid, even tho I’m 34. So that means by the time I put the kids to bed I have 5 min to clean up and reset for the next day. So our living space is mostly messy usually. And my land lady will routinely come upstairs and make comments about the mess (yes I know about tenant rights or whatever but it isn’t an official rental, it’s just a friend of a friend).

Thanks in advance.

Hi all! 

I’m a federally licensed Mortgage Loan Officer with Alliant Credit Union, lending nationwide with competitive online rates. I’ve been in mortgage lending for 20 years and help people make sense of one of the biggest financial decisions they’ll face. 

You’re working directly with a credit union lender, not a broker, but I shop rates like one. In addition to Alliant, I work with multiple investors to make sure you’re getting the best deal possible, including Pennymac, Mr. Cooper, U.S. Bank, Chase, AmeriHome, Freedom Mortgage, and Truist, plus access to Fannie Mae and Freddie Mac direct programs.

If you’re checking rates or weighing options, just drop a few details from the table below and I’ll send back a quick, personalized scenario. No cost, no pressure.

I usually respond within 24 hours. Your info is only used to build your scenario, and if you have questions at any point, just ask. Happy to help.

RATES CHANGE DAILY - RATES GO LIVE AT 10a CST

• All scenarios are based on:
• 30 day lock
• Payments are principal and interest only (tax, insurance, PMI not included)
• Lender Fees
  • $950 Conventional & FHA
  • $0 VA

^(Purpose)	^(General)	^(Loan Type)	^(Loan Term)	^(Property Type)	^(Property Use)
^(Purchase)	^(Property Value)	^(Conventional)	^(30-Year Fixed)	^(Single-Family)	^(Primary Residence)
^(No Cash-Out Refi)	^(Loan Amount)	^(FHA)	^(20-Year Fixed)	^(Multi-Family / max 4 units)	^(Second Home)
^(Cash-Out Refi)	^(Credit Score)	^(VA)	^(15-Year Fixed)	^(Townhouse)	^(Investment Property)
	^(Zip Code)	^(Jumbo)	^(5/7/10 ARM)	^(Manufactured)
		^(Physician)		^(Condo / # of stories)

Example of how to format your request:

• Purchase - $400k - $320k - 720 fico - 90210 - Conv - 30 Fixed - Single Family - Primary
  • [Purchase Price] - [Loan Amount] - [Credit Score] - [Zip Code] - [Program] - [Term] - [Occupancy]
• Refinance - $400k - $320k - 720 fico - 90210 - Conv - 30 Fixed - Single Family - Primary
  • [Home Value] - [Loan Amount] - [Credit Score] - [Zip Code] - [Program/Cash Out?] - [Term] - [Occupancy]

Common Questions:

• Lender credit = money from us, to you to reduce your closing costs
• Points = Cost to purchase rate
• Payment = Principal and Interest mortgage payment (monthly)

Unique Loan Programs:

• Doctor/Physician (No PMI)
• Non-Conforming/Jumbo (No PMI)
• $0 Down First Time Homebuyer
• Nurses/Medical Professional Loan Program

^(Important Mortgage Rules, Regulations & Disclosures:)
^(For Illustration Only - Not a Rate Quote or Offer to Lend - Rates and terms are subject to change)
^(Disclosures: APR equals Annual Percentage Rate. Rates and terms may change without notice. This is not a commitment to lend. Membership eligibility required. All loans are subject to credit approval and underwriting. Actual rate, APR, and costs vary based on credit, income, property type, and individual loan factors. Lending in all 50 States Excluding Maryland. No subordinate financing.)
^(Home Loan Disclosures)
^(Fixed Rate Mortgage Disclosure)
^(Adjustable Rate Mortgage / ARM Disclosure)
^(Social Media Guidelines and Disclosures)
^(Disclosure Library)

Collin Donahue | NMLS 236801
Alliant Credit Union | NMLS 197185
Contact Me & Apply Now Link

^(⌂ Equal Housing Lender | Federally Insured by NCUA)

Be cautious of unsolicited private messages from ‘lenders’ or ‘brokers.’ Do not share personal information through Reddit DMs, and please report spam/scam messages to Reddit.

Hi Everyone,

Hope everyone is doing well. I’m in a situation. I have about $50k that I can put towards my house loan, taken at 2.99% and bring down my monthly payment down by $200-500. Currently it is $4800/month as I only put 5% down when I purchase this property. What would be wise action from your experience? Shall I put it in the house or in the market to get 10-12% return year over year?
Also, what factors I shall consider before making this decision?
Yes, I used AI and got mixed feedback.

Lenders have told me I can’t share a home loan with my spouse because we live in different states. It won’t be his primary residence but I don’t understand why he can’t be on the loan. I tried looking it up and found that there shouldn’t be a problem. I qualify for the home on my own but want to own the proper together. I live in Texas and he lives in Wisconsin.

Does anyone have any advice to dispute this with my current lender.

Thanks

My lender quoted us 6.625% to lock in today. I’m worried we might be able to get it lower if we wait. Thoughts???

Looking for some advice from anyone who’s been through this.

We’re currently in escrow on a home and are scheduled to close in early August.

Our current mortgage broker is offering a 1-0 buydown, but that offer expires tomorrow, so we’d need to lock it in today. We’ve also learned that other mortgage brokers are offering 2-1 buydowns, which would lower the payment for the first two years instead of just the first.

We’re not asking whether a 2-1 results in a lower payment—we understand that it does.

What we’re really trying to figure out is whether it’s worth switching mortgage brokers while we’re already in escrow.
For those who’ve been in a similar situation:
-Did you switch lenders or brokers after escrow had already started?
-Were there any unexpected downsides, such as delays, additional paperwork, or issues with closing?
-Is there any real benefit to staying with the original broker/lender if another broker can offer a better overall deal?

We’re trying to balance saving money with avoiding unnecessary risk or complications this close to closing. We’d really appreciate hearing about your experiences or anything we should be considering before making a decision.

For context, this is a VA loan if that makes any difference.

My partner and I have been waiting for rates to come down before buying our first home, but now I'm wondering if we've waited too long. We have stable jobs, good credit (around 750+), and enough saved for a decent down payment.

For those who bought recently despite higher rates, do you regret it, or was it worth moving forward? Curious to hear real experiences before we make a decision.

What interest rates is everyone seeing in Southern California, particularly in the Palm Springs area? I’m considering purchasing a property for approximately $1.2 million with a 40% down payment and a 30-year fixed mortgage on FEE land. I would appreciate the rate recieved, any points purchased and the lender. Note: The lender doesn’t have to be local.

Hey! I'm currently mapping out my budget for a first home and wanted to get some realistic advice from the pros here. I’ve always been told that putting 20% down is the golden rule to avoid PMI. However, doing that would pretty much wipe out my emergency cash reserves. On the flip side, putting just 5% or 10% down keeps me financially safe but adds that extra monthly PMI cost. For those who chose to put less than 20% down to keep a liquidity cushion, do you regret it, or was it the smarter financial move in the long run? Would love to know how you weighed the pros and cons! Thanks in advance!

I'm supposed to close on a property in two weeks. Two weeks. The seller is firm… if I don't close by then, the deal falls through. And I really want this property. It's perfect for what I'm planning

But my bank just told me they need at least 45 days and I feel like I'm running into a brick wall. I've been scrambling, calling everyone I can think of, and getting nowhere

My realtor mentioned I might need to try a non-traditional lender and someone who specializes in rental properties and can close faster. Apparently there are lenders out there that fund long term rental financing deals in weeks instead of months. But I've never worked with these kinds of lenders before. I don't even know where to start looking

But do they really give money that fast, or is that only marketing? And what are the terms? I am scared to make a mistake just to make a deadline, yet I am scared even more about not being able to save this property at all

I've been losing sleep over this. I can't afford to mess this up. My whole plan for this property hinges on getting it now

Has anyone been through this? Did you use a non traditional lender for a rental property? How did it go? I need real advice right now. Please

Would it be better to buy a house with a 650 credit score or wait to 750?

Does anyone know of a lender that is doing 15/15 ARM loans? I am in Buffalo, NY and looking for this type of loan.

I’m looking at doing a small home renovation and thinking about using a home improvement loan to cover it. Mainly need to fix a leaking roof and update some old electrical work, so I’m trying to figure out how fast I could actually get funding if I apply.

Has anyone here gone through the process recently and how long did it take from application to approval and funding?

I need to understand what I’m missing here.

I have a VA Loan for ~$750k at 5.75%. P&I on it is ~$4400.

I constantly receive flyers for a 30-year fixed at various rates, the most recent being 3.375% (3.94 APR).

Now, I understand that 3.375% will likely come at multiple points being paid, but am I wrong to think that even with 3 points it’s still a great deal?

If I took the 3.375, rolled the points into the loan balance, I would still break even in ~16months.

New loan (P&I) would be ~$3,300, saving $1,100 each month.

What am I missing? Is it a scam?