conventional mortgage

marcymh · Joined: 01 Dec 2007 Posts: 1 1.44 Dollars($)

I was just preapprove for a home loan, (first time buyer) according to my loan office she was able to approved me for a conventional loan with a 20% down and an interest rate of 9.5% wich keeps hunting me, I thought the highest rate was 6.5 or even 7%, I do have some minor credit problems but Im working on that, is she right about the 9.5% or should I keep looking? this is the state of Texas

livinginnky · Posted: Sun Dec 02, 2007 10:46 am Post subject:

It is possible. Conforming rates just start around 5.5% and after adjustments you could get that high. Just depends on the situation. And you said conventional so that just means it is a standard loan. A subprime loan is a conventional loan. The only loans I know that are not conventional are FHA and VA loans. Terms can get confusing.

What is your credit history like? Score?
Job time?
Do you rent? pay with checks?
Where is the 20% down coming from?

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.07 Dollars($)

9.50% sounds way too high with 20% down even with credit problems. There are many options for less than perfect credit that are available at 6% to 7%. Definately shop around!

Guest

Way too high. Should be 6-7% at the most. Feel free to email me, and we'll compare rates!

evolovik26 · Posted: Mon Jan 21, 2008 8:04 am Post subject:

Marty i see more posts like this you'll get baned
As far as original poster is concerned you should definately get a second oppinion. If you are doing Full documentation loan then see about FHA or perhaps figure out what credit problems you have and how to fix them.
As far as high rates, there lenders out there that offer 12%+ interest rates now so 9% is not even highest. But you should definately check with another sourse or 2 b4 proceeding with this.

brad · Posted: Mon Jan 21, 2008 8:09 am Post subject:

Marcy,

There is no reason for your rate to be that high. Unless you can not verify employment or this is an investment property! If you are purchasing a home even if your credit isn't great and you can verifiy your income and assets you should be no higher than 8% at the most!

If your credit is ok and their are explanations for the problems that you have had in the past you can get an FHA mortgage at 6%. That sounds like robbery to me especially coming from the state of texas! Texas has the most strict lending laws in the nation! Please let me or any of the others know if you have more questions! KEEP LOOKING!

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.07 Dollars($)

marcymh,

Were you able to find a better deal? Keep us posted.

banker0679 · Posted: Thu Jan 24, 2008 12:42 pm Post subject:

You might as well apply for a FHA loan.....their highest rates are 6.75% 30yr fixed.

Ask your broker/lender for an FHA....if you qualify for a conventional/conforming loan...you should be a good candidate for FHA

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