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Guest
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 Posted: Tue Dec 16, 2008 10:08 pm Post subject: looking for 10% down conventional loan |
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| I need help finding a lender that will accept 10% down on a conventional loan? For retirement purposes, we'd like to purchase our 3rd and final home but can't find a lender that will accept 10% down. Every lender we've tried is asking for 20% down. Our credit scores are 725, 730 & 695. Any help is appreciated. |
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 jameshogg
Joined: 20 Dec 2005
Posts: 4189
Location: nevada
492.91 Dollars($)
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| Posted: Tue Dec 16, 2008 11:20 pm Post subject: |
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Hi Guest,
You can get a conventional loan with 10% down but lenders will ask for a PMI (Private Mortgage Insurance). PMI is an extra insurance that lenders require from most home-buyers with less than a 20% down payment. Did the lenders give you the option of PMI to get the loan? If you can afford a PMI, I think then the lenders will agree to give you a conventional loan. Why don't you try for a FHA loan? However, in case of a FHA loan, you will have to go for a PMI with 10% down.
You can also speak to the lenders of this community and seek a no obligation free mortgage consultation. Let's hope they will be able to help you.
Thanks |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 7129
Location: bloomfield, ct
18.93 Dollars($)
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| Posted: Wed Dec 17, 2008 8:37 am Post subject: |
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the issue here, clearly, is the private mortgage insurance. it appears that pmi companies have changed their standards so greatly that obtaining the insurance is now requiring a miracle.
perhaps you're looking at the wrong lenders - there ought to be a pmi company out there willing to insure you, and i say that based strictly on your credit scores.
certainly, fha is an option as well. you may find conforming rates a bit lower than fha at this point, but you can also rest assured that the mortgage insurance required on an fha loan will be a no-brainer, and you'll get your loan and be able to close in a timely fashion.
_________________
George M. Akerley
Loan Consultant
860-221-5044 |
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parmoney
Joined: 05 Dec 2008
Posts: 37
11.32 Dollars($)
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| Posted: Wed Dec 17, 2008 8:46 am Post subject: |
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| Will you be residing in the the new property or is this an investment for the time being until you retire? |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 7129
Location: bloomfield, ct
18.93 Dollars($)
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| Posted: Wed Dec 17, 2008 8:57 am Post subject: |
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that's not a question that occurred to me, parmoney; but you may have hit on something.
_________________
George M. Akerley
Loan Consultant
860-221-5044 |
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