What is considered non subprime?

[Rebuildin]

I've been doing a lot of reading about the sub-prime mortgage arena tightening up and I was wondering what it takes to be considered a non sub prime borrower. I'm going to be looking at buying a home in the next two years. My BK was discharged in August of 05 and according to WaMu my bank card FICO is 662. I'm just wondering what it takes and how close I am to be considered a non sub prime candidate. Thanks.

[MTG_BANKER_OH]

I've been doing a lot of reading about the sub-prime mortgage arena tightening up and I was wondering what it takes to be considered a non sub prime borrower. I'm going to be looking at buying a home in the next two years. My BK was discharged in August of 05 and according to WaMu my bank card FICO is 662. I'm just wondering what it takes and how close I am to be considered a non sub prime candidate. Thanks.

If you have clean credit 2 years out of BK then you typically would not be considered subprime. Some lenders who do not know their programs may still try and place you into a subprime loan. You will need to keep your credit up and scores up and you should be fine by august 07

[Rebuildin]

Thanks for the quick reply. I'm very new to the housing market. Am I correct to assume that if I'm in the non sub-prime category within the next year that I'll be able to get a fixed rate mortgage? I've heard too many horror stories about variable rate loans to try one. Thanks again!

[MTG_BANKER_OH]

Thanks for the quick reply. I'm very new to the housing market. Am I correct to assume that if I'm in the non sub-prime category within the next year that I'll be able to get a fixed rate mortgage? I've heard too many horror stories about variable rate loans to try one. Thanks again!

you should be ok to get a fixed rate mortgage when your 2 years is up.

[moneytree]

Fixed rate...

Hey...we had a fixed rate offer just 2 days out of discharge, but then they took it away. LOL Mainly our fault as our debt to income was too high, but in our case they cannot use my husbands 2nd income due to lack of 1099.

We were offered 8.7% w/ Option One and then 13.6% on the 2nd loan. This was a 30 yr. fixed loan.

Feel good in knowing that you won't get a horrible offer like we were given!

But then again, it all depends on the market! We were actually advised that in 2 yrs. 8.7% might look pretty good so refinancing in 2 yrs. for us didn't have to be the case. Andd...then there was the no pre-pymt penalty on the 2nd loan (that's what we were told) but the paperwork said otherwise (and another lender said otherwise).

;) Have fun home shopping this summer!

[MTG_BANKER_OH]

Hey...we had a fixed rate offer just 2 days out of discharge, but then they took it away. LOL Mainly our fault as our debt to income was too high, but in our case they cannot use my husbands 2nd income due to lack of 1099.

We were offered 8.7% w/ Option One and then 13.6% on the 2nd loan. This was a 30 yr. fixed loan.

Feel good in knowing that you won't get a horrible offer like we were given!

But then again, it all depends on the market! We were actually advised that in 2 yrs. 8.7% might look pretty good so refinancing in 2 yrs. for us didn't have to be the case. Andd...then there was the no pre-pymt penalty on the 2nd loan (that's what we were told) but the paperwork said otherwise (and another lender said otherwise).

;) Have fun home shopping this summer!

You can always get a 30 year fixed rate with subprime lenders but the rate is considerably higher usually .5%-1% higher, so therefore many people opt for the 2 year fixed for a lower payment. Typically if there is a prepayment penalty on the first there will typicallly be one on the second.

[Mortgage Guru]

watch out for the pre-payments I always write them at the same term as the lock period. IE: if you have a two year fixed rate, don't allow a three year pre-payment penalty. this will hold you hostage in the loan for an extra year while the rates go up.