(upbeat music)
- When we got married, we had a combined total
of about $30,000 in debt.
About a year and a half into our marriage
he got offered a job in Nashville.
He came here as a contractor.
We knew we did not want to buy a house
when he was a contractor.
- See, I wanted to buy a house,
but she's like, "No, let's just wait.".
- Yeah, the sticker price on the houses was quite shocking.
We had had some financial discussions before we got married.
He knew how I felt about debt and credit cards.
Financial Peace University was just kind of
the final thing that brought him on board,
but Steven was very skeptical.
- Very skeptical.
- He decided that he would try it
and just see if it worked—
see if this crazy plan worked, and it did.
- I knew that God would push us through,
regardless of what it was.
So I was like, "All right, let's try this."
- Shortly after the birth of our first son,
we paid off our final debt and became completely debt-free.
Then we decided it was time.
We just knew it was time.
We had outgrown our house.
We lived in a 750 square foot duplex.
- I mean, I honestly didn't think it was possible
to buy a house with no credit,
but by working through the steps, it works out pretty well.
- It's part of the plan.
Dave Ramsey has it in his book,
a step-by-step plan of how to do it.
It works.
- Thanks, Amanda and Steven, for being here
and sharing your story.
I really appreciate it.
- [Amanda and Steven] You're welcome.
- Yes, okay.
So I want to know, because we're talking about manual underwriting,
because a lot of people believe you have to be in debt
to get a great credit score to buy a house,
and we know that that is not true.
So you guys went through the manual underwriting process
to buy a new home.
So tell me, first and foremost,
what caused you to buy a new home?
Why did you go into the home-buying process?
- We were in a very small, tight space—750 square feet
with me, her, and two little boys.
- Oh, yes?
- Yes, yes.
- A little bit of craziness.
- Yes.
- And chaos.
- Yes.
Way too close together.
(laughing)
- Yes, yes.
So you wanted to kind of upgrade, get some more space.
So then you go through the manual underwriting process.
So tell me all about that from start to finish.
Like what did you do? Who did you contact?
How did it work?
- It was a bit of a process to find a mortgage company
who would work with us.
- Yeah.
- The first two mortgage companies I talked to,
they told me that they would work with us
because I was very upfront with them.
I told them, "We're debt-free.
We've been debt-free from three years.
We have a zero credit score—no credit score.
Do you do manual underwriting?"
- Yeah.
- And they told me yes and they took my information
and ran my credit.
Of course, it was no credit score.
And they called me and said,
"Oh, well you do in fact have no credit score.".
It was like they don't believe me.
(laughing)
- I'm not lying.
- Exactly.
- Then when we saw the emails it's like,
well yeah, we told you this from the beginning.
So why would you even try to run it
when we have nothing?
- Right, right.
- And one of them told me to go finance furniture.
- Oh, interesting.
- Yes. That if I was desperate enough
to buy a house like that then I would.
- [Steven] That's what we'd have to do is . . .
- Go into debt.
Wow.
- Yes.
- Wow, and you said, "Well, not us."
- Yes, that was not an option.
- Not Amanda and Steven.
- That's right.
- The other one told me to get a credit card.
Find something that I order every month,
such as pet food, and just—
- Build up a credit score that way.
- [Amanda] Yes.
- It took three. So your third one . . .
- Yeah and so I called Churchill
because I knew that they advertise with Dave Ramsey.
- I love it. So they worked with you?
- Yeah, so I called them and they worked with us.
It was a wonderful process.
- I think that's such a great point,
because on the show we're talking about,
sometimes living without debt,
there's some inconveniences, right?
There's some things like rental car companies—
not all of them will rent you a car
if you don't have a credit card.
Some of them will if you have a debit card.
So there's just things you have to kind of work around
and this possibly being one of them.
And to do manual underwriting
it takes a little bit more effort.
It's not this shoo-in of like,
oh, yeah here's my great credit score
and anyone will take me.
No. Some of them may not understand,
and so it takes some calls
and a little bit of an inconvenience.
But how worth the inconvenience
versus having to pay for furniture
that you went and got into debt for for this new house?
So, I think it's a great example
that it is still possible—it is.
So great.
So all this whole process for you all—
you got out of debt, you worked through the plan.
I want to know, did your friends and family
know you guys were doing all of this?
- They did and they thought we were crazy.
They're like, "That's not going to happen."
- Seriously.
- Definitely.
- Yes, so you had some naysayers
say that it's not possible?
- There are always naysayers.
- Absolutely, absolutely.
And so, looking back now over your story,
would you say this whole journey has been worth it?
- Oh, yes.
- Getting out of debt, doing the manual underwriting . . .
Like where are you sit today, is it worth it?
- [Steven] Definitely.
- Yes, it is worth it.
It's always worth it.
- Do it and then continue to pursue.
- Yeah, and kind of like my husband was at first,
just try it. And I promise it'll work for you.
- Yes, so you weren't the one fully on board then?
- I wasn't, no.
She was.
- Okay so tell me about that.
How'd you get on board?
- She convinced me.
She was just like, "Hey, let's try this."
And I was like, "I don't think so."
But then I was like, "Okay, we're going to try it."
And it's like, if it fails,
I can always fall back on this one.
- Sure.
- Okay, sounds good to us. And that's what we did.
- Yes, so what made you think that maybe it wouldn't work—
getting out of debt and living a debt-free life?
- It sounded like it was a crazy idea.
Like it was the way that everybody pushes everything.
It's like, "Hey, you have to have this
and you have to have that.
And you have to have a good credit score
to get everything. And you don't."
- Yeah.
So great.
So good.
Well, you guys are awesome. You worked the plan.
You're a living testimony to the fact
that you can live life without debt, without credit cards.
You can still get a mortgage, because it's the one type of debt
we won't yell at you for. Remember that.
And you can do all of that, again, living debt-free.
So, that's awesome, you guys.
Thank you so, so much for coming on and sharing your story.
- Thank you for having us.
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