MortgagesUndressed

I have spent a lot of time pondering the current state of affairs caused by the sub prime implosion. I believe good credit is a matter of maturity. Some of us mature at an earlier age than others. However, the 0 down loans for credit scores as low as 580 helped many immature people purchase a home. As a realtor and owner of a mortgage company I should like the liberal avenues. I don’t, at least I didn’t.

I believe any 580 credit score can climb 100 points in a year with hard work and disclipine. Those two words don’t correspond with maturity do they? I built my pre mortgage company ownership career persuading people with poor credit to take one year and clean their lives up. I don’t know who felt the greater joy, me or them, when I would get calls saying “We did it, we are ready.”

FHA loans were and should be the recovery loan from bad times. They forgive problems one time. If you can clear up your collections and judgements, and have one year of good credit with no bad credit you can get a great rate. That is where it used to be for those who had probllems, and that is going to be the answer in the future.

So if you want a home and don’t own one, and if you have bad credit, you should cheer the sub prime implosion, for it is in your best interest that instead of satisfying your hunger by allowing bad credit, you be forced to grow up. To own a home now, you must. Larry Cragun…. Sorry for the undressing, call it tough love from the ole man.