Looking for a 95% LTV on 889000 purchase price-possible?

rlsrlj · Joined: 23 Jan 2008 Posts: 6 3.54 Dollars($)

Builder is giving us a $50,000.00 incentive for price reduction/closing costs/or rate buydown.

Middle scores are 680 and 730 and rising (should we wait?). There are student loans that are deffered 5+ years. 2 car leases within 10 months of payoff. Monthly gross is $11,900.00..only other debt is credit card around 25K (monthly payment is 2% of balance)...any thoughts if this is possible?

Thanks!

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi rlsrlj,

Welcome to the forum.

Your credit score is good and monthly income is also good but your LTV ratio is on higher side. So the interest rate may be a bit higher. You can shop for lenders for affordable rates and terms.

Feel free to ask if you have any further questions.

Best of luck,
Larry

kpatrick · Posted: Wed Jan 23, 2008 3:30 pm Post subject:

Hi rlsrlj,

With the markets tightening, I do not know of any lenders out there that are offering 95% LTV on a jumbo loan...the best you can get in my neck of the woods (Atlanta) is a 90% LTV on a jumbo loan. Also, is this your first home, or are you an experienced homeowner. Payment shock could also be an issue. Give us some more details...

Without any debt, and not adding in escrows (b/c I don't know what area you are in)...your DTI is 47%. You will probably need to consider a lower loan amount...

rlsrlj · Joined: 23 Jan 2008 Posts: 6 3.54 Dollars($)

this is our third home....last home was around 3000 a month-we just sold it back in Nov. Home is in Hoover, Alabama prop taxes around 4300/year 1300 ins.

Also we do not need to close until late April...income will be a little higher by then-plus scores will be higher...We have no lates in the past 36+months-just credit card debt which is being paid down more and more....Also we have about 22k in retirement investment accounts,in case reserves are necessary.

banker0679 · Posted: Wed Jan 23, 2008 7:00 pm Post subject:

are you going to provide full documentation?

rlsrlj · Joined: 23 Jan 2008 Posts: 6 3.54 Dollars($)

Yes, Full Doc.

banker0679 · Posted: Wed Jan 23, 2008 9:23 pm Post subject:

I saw 3 lenders so far that can do this.
I haven't reviewed what the PMI payments are going to be.....but you should get rates lower than 7% on a 30yr fixed.
ARM pricing will be lower.

rlsrlj · Joined: 23 Jan 2008 Posts: 6 3.54 Dollars($)

I am more interested in an arm and combo...I would prefer an interest only period on the first, if possible...
some are telling me that the lowest I can get on a jumbo is 90%...glad to hear there are some 95% still out there-I know things have changed
where should I start about seeing specific rates?
Many Thanks!

ckalvesmaki · Posted: Wed Jan 23, 2008 10:12 pm Post subject:

Yes your loan can be done........however.....what are you currently paying for rent? Can you proove your income? Will you have reserves left over after you put 5% down.....

banker0679 · Posted: Wed Jan 23, 2008 10:24 pm Post subject:

Combo is a lot different than 1 loan. Maybe this is the reason why you were being turned down.

ckalvesmaki · Posted: Wed Jan 23, 2008 10:30 pm Post subject:

combo loan can be done as well.....

rlsrlj · Joined: 23 Jan 2008 Posts: 6 3.54 Dollars($)

the only reason i have been turned down by one major mortgage co is because they still want to count the car lease pmts in my dti...even though they will be paid off within 10 months-before I turn the cars in!...I can always drive something much cheaper next year...
I am leasing the house i want to buy from the builder..he is letting me lease at a very low rate so I can save my down payment faster....to close faster than if I was paying full rent amount.

We just sold our home back in november...most of those proceeds will go toward down payment.....decrease credit card debt. Tax refund coming and what I can save between now and April will be downpayment.

We have a little over 20k in retirement account in reserve

I really didn't want to sell my last home back in novmber-but we got a great offer for the current market..

banker0679 · Posted: Wed Jan 23, 2008 10:42 pm Post subject:

leases have to be renewed or you will need to buy a car. they will have to hit you with a payment either way...and if you're still in the lease...and haven't bought the other car yet...then they will continue with the lease

that is common with every lender.

lisascherzer · Joined: 04 Jan 2008 Posts: 599 69.58 Dollars($)

Hi rlsrlj,

680 score is fine to get a good rate right now. A higher score won't get you much of a better rate. With the builder incentives and the market right now, I think it's an excellent time to buy a home. You do have options for 5% down. As far as getting the debt ratio down, this may be possible with getting into an adjustable rate and using some of the funds the builder is giving to buy down the rate. Another option is a mortgage that allows you to pay less than the interest every month. There are definately some options here.

0.10 Dollars($)

With those scores........and the debt ratio......you should be ok on a combo loan IO..depedning on taxes.......it looks like it is less than 50%.

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