Houselopnik!! And some credit lessons.

"Birddog" (maintmgt)
08/05/2016 at 03:58 • Filed to: None

Long story short? Too late!

I’m still doing my homework on this as the rules have greatly changed since I last bought a home. But certain events with my current landlord have me sick of being a renter.

Thanks to some dumb decisions, one dumb “I Do” and a layoff or two my credit, retirement and savings have been in the bottom feeder range for a few years. Suddenly there’s light at the end of the tunnel.

Thanks to the advice of a well known Chicago area mortgage broker I’ve pulled my “dumb ass” out of debt by negotiating and paying or contesting and dropping negatives from my credit report. No BK for this guy! Lol.. One problem remained. The score didn’t go up. So I went to my Credit Union to see if I could get a loan to replace Trusty Crusty the F150. Surely a new(er) vehicle, it’s monthly payment and higher insurance would help.

Well.. That ain’t happening. I spent a few hours there doing a “Money Makeover” and wound up with a “Credit Coach” loan instead. They don’t actually give you money in this case. They make it look like they did. And you pay a little juice to make it legal. Suddenly my credit score jumped 75 points. 75 points in three weeks!! That’s yuuge! Suddenly I’m in FHA 3.5% downstroke range. There’s still about 12 to 18 months of work ahead but I’m getting close.

That house pictured is a “Modular” aka double wide. It’s $75,000 installed on a vacant lot. Four acres of land on a bluff overlooking the Mississippi River valley is $58,000. And I can make this happen for, roughly, the cost of two new full size pickups.

Looks like old Crusty will be around for a lot longer than anticipated.

(Top Tip! Invest in whoever makes Dynalite body filler. I have to make this truck look a bit better somehow!)

DISCUSSION (27)

6Cylinder > Birddog
08/05/2016 at 04:04

Modular houses are cool and are often very nice. The only thing that steers me away from considering one is that they really don’t ever appreciate in value. They are cheaper now but won’t return your investment like a normal foundation built house.

Birddog > 6Cylinder
08/05/2016 at 04:25

That is true. They depreciate like vehicles. I’m not too worried about that though. I know the new “in” thing is flipping after a few years and moving on, but I’m settling in for the long run. I hate moving and I’m in a great area that’s a good balance between City and Country. Plus the land it’s on will appreciate and 4 acres is a heck of a lot of land.

Sovereign, Purveyor of Coupes > Birddog
08/05/2016 at 04:55

I had no idea how affordable these houses were. Now to find a huge plot of land...

Denver Is Stuck In The 90s > Birddog
08/05/2016 at 04:57

If I may ask; Whats your credit score?

Birddog > Denver Is Stuck In The 90s
08/05/2016 at 05:01

I just eclipsed 625. A far cry from when I was young and “smart".

Denver Is Stuck In The 90s > Birddog
08/05/2016 at 05:06

Thats still not terrible, why is that making it so difficult to get a loan?

Rustholes-Are-Weight-Reduction > Birddog
08/05/2016 at 05:17

133.000$ for a house and 4 acres? man I’m moving to the US.

Birddog > Denver Is Stuck In The 90s
08/05/2016 at 05:22

Score, active accounts in good standing and recent history are major players. My newest “good” account was closed in 2006. Since 08 I’ve been living in a cash only world. No cards or loans. And I’ve learned a lot in that time.

Birddog > Rustholes-Are-Weight-Reduction
08/05/2016 at 05:25

Careful! I’m semi rural. Things are cheaper in the “country” but income can be lower too. I got lucky with the job and area.

XJDano > Birddog
08/05/2016 at 06:34

This is refreshing.

As I am strongly encouraging my inlaws to move out of my rental.

He has low credit & she has no credit. So far it not looking so good.

shop-teacher > Birddog
08/05/2016 at 08:54

That’s good to hear you’re pulling it together. Manufactured homes have come a long way from the hideous crapshacks they used to be.

I wish my career made it possible to live rurally and still make a decent salary, but that’s life.

Jake, Yes, wearing khakis > Birddog
08/05/2016 at 08:55

Buy a modular! Best thing about a modular(if that is a true modular and not a trailer) is they do not lose value like a trailer. They are built the same as a stick built just offsite, technically they are structurally better because they are built in a 100% level warehouse rather than onsite. We bought one on 3 acres in MD, best thing we ever did.

Jake, Yes, wearing khakis > 6Cylinder
08/05/2016 at 09:02

I thought this was true as well when we started looking at modular homes but it turns out its the opposite. True modular homes appreciate in value, trailers depreciate. The problem is trailers and modulars get confused with each other.

This link was a really good explanation for us. http://www.drysideproperty.com/mobile%20vs%20…

Edit: added the link

BigBlock440 > Birddog
08/05/2016 at 09:17

That’s not a modular, that’s a manufactured home. The mortgage companies do make a distinction. I found that out when I was going to buy a manufactured on 4 acres, they wouldn’t give a mortgage because it wasn’t a permanent foundation. But if you’re the first buyer, you’re probably going to be able to work out financing through the company selling it.

Funktheduck > Birddog
08/05/2016 at 09:44

Cash only is so bad these days. Credit score is a factor in so many decisions (that totally shouldn’t be) like car insurance rates and job hiring.

My parents did it for years. When it came time to do things that required credit they were either denied or got really high rates because they had the mantra “if I can’t pay cash I can’t afford it" which isn't bad for most things but really screws thing in modern days

6Cylinder > Jake, Yes, wearing khakis
08/05/2016 at 09:46

Ah thanks! That’s good to know!

Brobalt SS > Birddog
08/05/2016 at 10:14

Overlooking the Mississippi? You don’t happen to be near Dubuque do you? My credit was bombed a few years ago due a combo of the Army’s student loan repayment program and my own (stupid) inattention. Did the same thing as you at our credit union and luckily my wife’s rating was excellent so we finally got a house about 18 months ago.

notsomethingstructural > Rustholes-Are-Weight-Reduction
08/05/2016 at 10:32

Counterpoint, I’m waiting on an appraisal on my bank’s house that I pay them to live in, 1400 square feet on .04 acres and it’s probably in the 7-figure range. God I can’t wait to leave.

AfromanGTO > Birddog
08/05/2016 at 11:08

You probably qualify for a FHA loan. They have loosened the requirements on certain aspects, and are taking people with lower credit scores. So you can get a place in some cases for 3-10% down.

Birddog > Brobalt SS
08/05/2016 at 14:38

Yeah, I’m in East Dubuque right now.

The CU helped put a lot of things in perspective. There’s no doubt there!

Birddog > BigBlock440
08/05/2016 at 14:44

That’s what I’m looking into. I’m not buying today luckily but I dont want to wait too long either.

Birddog > Funktheduck
08/05/2016 at 14:47

Luckily some states are getting wise to the credit being run for a job and making it illegal. 11 or 12 states bar it now.

But yeah, cash only is dumb.

Birddog > shop-teacher
08/05/2016 at 14:52

It’s funny, if I hadn’t got preapproval for a truck I wouldn’t have even considered the direction I took.

You’re in a heck of a neighborhood though. If things didn’t go south for me I’d still be happy living in my “small” house in Lemont.

Denver Is Stuck In The 90s > Birddog
08/05/2016 at 15:03

Ah that’ll do it. Not having a current credit history

shop-teacher > Birddog
08/05/2016 at 15:06

I do like our neighborhood, I just wish we had some land. The house is plenty big, no need for more house.

Brobalt SS > Birddog
08/06/2016 at 11:41

No shit that’s where I live! I work at Runde for the time being and live up around Mt. Vernon area.

Birddog > Brobalt SS
08/06/2016 at 19:15

Small world!

I’m down in “the flats” by Bent Prop Marina on “Lake” Lacoma. I moved out here for a job at Finley Hospital in Dbq.