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To: starfish923
People with "less than stellar credit" shouldn't be buying a house. They should be changing their behavior so their credit is good. That is, saving money for a decent down payment is a way to go.

There always will be subprime in some form or another, and not everyone with "less than stellar credit" is a deadbeat or even is someone without a down payment. There are 101 reasons someone might need a subprime loan. However, I'd generally recommend 5% - 10% down to almost anyone, unless they have a lot of money they'd just prefer NOT to spend and would rather keep it in reserve. Everyone's situation is different. Mortgage lending is not one-size fits all, and I think that was part of the problem - people with 560 credit scores generally aren't responsible enough to purchase a home...but it does, admittedly, depend on why their score is that low. It could be because of 12 small medical collections, or it could be because of never paying a single bill on time, ever. The first case, probably OK to buy, second case, not so much. Which goes to show credit scores alone aren't a satisfactory indicator of creditworthiness despite what Fair Isaac says.

10 posted on 08/08/2007 7:04:21 AM PDT by RockinRight (Fred's Campaign: A hell of an opening, coast for a while, and then have a hell of a close.)
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To: RockinRight
I understand everything you said. There are always exceptions. My comment was general, as I think you know, so I stand by what I said.

Homes are usually a person's biggest debt. It is insanity to buy a house without the means to do it. It's a set-up for failure. And, the bigger the investment of money, heart and hope, the bigger the failure when the bank repossesses. Who needs that?

21 posted on 08/08/2007 7:14:10 AM PDT by starfish923 (Socrates: It's never right to do wrong.)
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