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Old 06-17-2011, 08:24 PM   #1
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No credit rating?

I Really want out of my condo so I found a house to buy and went to the bank to get pre-approved. I can easily afford the payments. Even with just 5% down it would be <12% of my monthly gross income. The banker agreed but said I would have to get approved from the PMI company too because I only want to put 5% down. I got a call the next day saying that my credit scores were 775, 780, and N/A. Equifax had a credit score of N/A. They take the average of the 3 to approve or deny and counted the N/A as a 0 and declined me. So I have to put 20% down to get the loan which wipes out my e-fund.

Anyone know of a reason why a N/A would show up on a credit report?
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Old 06-17-2011, 10:27 PM   #2
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Probably because whatever accounts you have, aren't being reported to Equifax. Therefore, a score can't be generated.

Go to annualcreditreport.com and pull all 3 of your reports. This can be done once a year, free of charge, and helps to avoid surprises when you apply for credit.
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Old 06-17-2011, 11:30 PM   #3
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Odd they took the average. I've usually seen them take the middle of the 3 (median, essentially).

BLS's advice is solid.

E funds are overrated. And though it sucks having to put down more, but putting down 20% instead of 5 your payment will be lower than it would have been. Save the difference (and a lot more of your salary, since your housing is such a small percent - good for you), and you'll build back up that emergency fund very quickly.
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Old 06-18-2011, 11:10 AM   #4
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Originally Posted by arebelspy View Post
E funds are overrated. .... and you'll build back up that emergency fund very quickly.
I dunno 'bout that. A new home purchase can trigger all sorts of unforeseen expenses. I'd be nervous going in w/o a way to tap funds.

Now, often people think of an emergency fund as 'cash' - but as long as you have access to something liquid, it'll do. You might need to pull it out at a bad time (probably only known after the fact anyhow), but that risk might be worth it.

-ERD50
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Old 06-18-2011, 11:25 AM   #5
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Originally Posted by ERD50

I dunno 'bout that. A new home purchase can trigger all sorts of unforeseen expenses. I'd be nervous going in w/o a way to tap funds.

Now, often people think of an emergency fund as 'cash' - but as long as you have access to something liquid, it'll do. You might need to pull it out at a bad time (probably only known after the fact anyhow), but that risk might be worth it.
A few hundred dollar home warranty (usually worthless, but good for the first year of ownership, IMO) will help with anything going wrong in the first year.

And yes, I meant an efund as cash is generally overrated. Access to some line of credit works equally well, and if you prefer cash, he shouldn't have much trouble building that up for the reasons stated above.
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Old 06-18-2011, 11:28 AM   #6
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Good Day All,
One thing you may want to try is to find a local Real Estate Investor and work with them so that you can get into the condo you want! There are so many methods that you can use to achieve the same results. If you want any advice please contact me.
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Old 06-18-2011, 11:35 AM   #7
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Good Day All,
One thing you may want to try is to find a local Real Estate Investor and work with them so that you can get into the condo you want! There are so many methods that you can use to achieve the same results. If you want any advice please contact me.
Rod, it's kinda early on the weekend for a moderator to be handy at short notice, but I'm pretty sure their notification boxes are starting to fill up and one will be along soon.

In the meantime, before you put up any more solicitations for your assistance, you might want to review the part of the community rules that advises "Our user base is not an unlimited resource to be 'mined' by individuals, groups, or businesses, for profit or not for profit." I'd also suggest that if you feel the need to continue posting that you begin with an introduction in the "Hi, I am..." thread.

I hate to see a service member do this to themselves. You don't (yet) have enough posts for the user permissions to send PMs, but feel free to send me an e-mail.
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Old 06-18-2011, 11:49 AM   #8
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I'm sorry, no harm no foul, just trying to help! Note taken.

V/R,
Oscar Rodrigeuz
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Old 06-19-2011, 09:58 PM   #9
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Originally Posted by arebelspy View Post
Odd they took the average. I've usually seen them take the middle of the 3 (median, essentially).

BLS's advice is solid.

E funds are overrated. And though it sucks having to put down more, but putting down 20% instead of 5 your payment will be lower than it would have been. Save the difference (and a lot more of your salary, since your housing is such a small percent - good for you), and you'll build back up that emergency fund very quickly.
After you pull your EquiFax credit rating, I would definitely contact them and see what needs to be done to get a rating with them. If bank is treating an N/A as a zero that moves your credit from a good 780 to an awful 520. If your bank insists on treating an N/A that way you need to find a better bank.

I would think/hope that you would be able to get a significantly better loan with a 20% down plus it save you from having to pay PMI. (I forget is PMI currently deductible for tax purposes?)

I disagree with Arebelspy, Efunds are like insurance a useless expense, until you need them, then very valuable. Still as he suggest if you are only spending <20% of your salary on housing it should be easy to rebuild it.
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Old 06-19-2011, 10:21 PM   #10
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(I forget is PMI currently deductible for tax purposes?)


Deductibility for PMI ended on 12-21-10.
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Old 06-19-2011, 10:22 PM   #11
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I meant 12-31-10.
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Old 06-19-2011, 11:51 PM   #12
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Thanks I guess Congress can't make up its mind about it. I am not sure why it should be deductible neither fire or hurricane insurance are deductible, not sure why insuring against default should be.
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