Which will be the best option for first time buyer?

Guest

We are looking to buy a home of our own. The seller has agreed to an offer worth 295,000 and a down payment of 10%. We'd like to pay the closing costs out of our savings account. And we have cash reserves worth 6 months of loan payments and we can pay it with our savings only. Our credit scores are around 620 and 755. my annual income is about 50K and my husband makes 52K. he had taken a new car and for that he's making monthly payments of $200. I am yet to pay off a student loan which requires me to take out $90 per month. Now the question is, what could be our best loan option. We do no have any other debts to deal with and no credit card debts (all are paid). Should we go for 30 year fixed with pmi or would take out an 80/20 loan.

Guest

30 year fixed rate loan with PMI premiums will be a suitable option ratehr than 80/20 loans.

evolovik26 · Posted: Thu Oct 04, 2007 6:36 am Post subject:

do you have the 10% dowpayment or you looking to get 100% financing?
have you both been employed for 2 years? Depending on your state and county you might be eligible for 97% FHA financing. If not then you can go either 80/10 or 90% purchase. Either one can be done although the 620 score for one of you may affect the issue. Look at both options and see wich one is more suitable to your needs. Your loan professional should be able to present you with both options if they are available to you.

livinginnky · Posted: Thu Oct 04, 2007 11:35 am Post subject:

Right again Eugene,
Check out all your possible options. It is never a bad idea to run the numbers every way possible. It also depends on how long you plan on living in the home.

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