Posted: Sun Aug 17, 2008 2:05 pm Post subject: first time home buyer
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Im a 31 year old male living in Indianapolis. This is my first attempt at applying for a home loan. My income is $60,000 and Im a 797,777,801. My monthly debt is around $500 and I owe around 11k combined on my car, student loans and credit cards. Im wondering how much home I will qualify for and at what rate. If anyone could give me rough estimate that would be appreciated. Also I only want to put around 5k or 5% down. Im looking at a $109000 dollar home. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
It sounds like you may have a couple of options. Either conventional or FHA. It really dependson the market where you live.
Find broker and discuss things with them you should be fine.
I would look to do 5% down with no PMI. It is a conventional loan and most lenders have it. The rate will be slightly higher but b/c there is no PMI your monthly payment will be lower. Than an FHA or Conventional with PMI.
Posted: Tue Aug 19, 2008 6:19 am Post subject: RE: first time buyer needs loan with low down payment
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Hi slck,
First of all, I'd ask you to calculate how much of a home you can afford. depending upon your affordability, you can then look out for a suitable home and mortgage. Also, what I'd like to say is, your monthly debt payments aren't much. So that's good considering the fact that you'll be able to manage the mortgage comfortably when you don't have too many obligations. By the way, what's your Debt to income ratio? if you haven't calculated, use the DTI calculator to find out your debt to income ratio.
since you're looking for a low down payment loan, you may try for FHA loans. But it depends upon the maximum loan amount offered in your county. Check this out with an FHA approved lender. Also, shop around for conventional loans too. This is because you don't know which offer will be the best until and unless you shop well and then calculate and compare the costs and payments.
What you can do is, request for no-obligation free mortgage quotes from the lenders in this community. Then discuss the offers in our forums prior to taking a decision.
based on the original post, i agree that conventional and fha both are viable products. i do not agree, however, that a loan without pmi is likely - especially with 5% down payment. there might be a lender out there willing to offer lpmi (lender-paid mi), but i have to surmise that they are few and far between.
in addition, since mortgage insurance premiums are tax deductible, getting pmi on a loan isn't such a bad thing.
based on the scenario, borrowing $103550 (with 5% down), monthly payments based on 6.5% rate would be $664 (plus taxes, insurance, pmi). i think you'll find rates in that neighborhood - some lower, some higher but that's a representative rate these days.
one thing to search for is a bond program that your state might have...such programs will generally afford you a cheaper rate than any other product you can find. _________________ George M. Akerley
Independent Contractor - Mortgage Consultant
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brian1
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