ACORN changes
I talked with our former ACORN representative today to get up to date information on how the housing crunch has affected their program. Prior to the recent sub prime issues ACORN had a pretty decent program, here are the details in a snapshot:
Now the program has been stripped to:
- 3% down
- 620 credit score (Wasn’t credit score driven prior to this change)
- 74k income limits (Limit was 106k prior to the change)
What does this mean for you?
SAVE SAVE SAVE!
For instance, if you are considering purchasing a 250k home, you will need at least a $7500 downpayment and funds towards closing costs and other items such as earnest money, home inspection, taxes etc.
Debt reduction and clean up is a must!
Let’s face it, debt isn’t hot at all. Owing thousands on various credit cards with nothing to show for it means you are throwing your money away and not steadily building for a secure future.
- Lower your utilization rates and cut the credit card spending to a minimum. What’s the minimum? If you can’t pay it off by the end of the month then you can’t afford it and shouldn’t spend it. Idally they should be less than 30%
- Pay off your balances on time
- Pay more than the minimum payment each month.
- If you have a decent FICO/VANTAGE score then transfer your balance to a low/no interest credit card and pay it off within that period.
The banks are tightening their belts and so should you. Let 2008 be the year that you get your act together and take it to the road! Your goal may not be to purchase a home this year, but it can be to save more, spend less and pay down debt!
Make it happen!
About the Author: Girls Just Wanna Have Funds is for the woman that wants to take charge of her personal finances. We value budgeting, investing, frugality and remain mindful of our spending habits. Move over and make way for women who are in control of their financial destinies and not afraid to say it. We're armed with a positive net worth and not afraid to flaunt it while breaking financial ceilings one stiletto at a time!
Minimum Wage | Jan 19, 2008 | Reply
What do they have for people earning minimum wage with student loan debt and subprime credit?
Stop Debt (1 comments.) | May 2, 2008 | Reply
Great info.. As you said before debt is not cool. Stay on focus and work your debt down with adding extra funds to individual payments.
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