Posted: Tue Dec 02, 2008 9:18 pm Post subject: What type of loan should we be looking for?
We have a contract on a new contruction home that is for $500,000 we have also placed earnest money down for $20,000.00 We thought we were all set to go and the last month both my husbands credit and mine took a hit. I am the one with the income. I make $98,000 a year and my husband makes $60,000 a year. I have talked to so many mortage brokers and I am so confused on what we should be doing. We need to close in a month. Any advice is greatly appreciated. Oh, we have $63,000 to put down for a down payment as well.
I don't think you will face much problem in getting a loan with the kind of income you have. You haven't mentioned your credit score here. In today's market the lender will also look at your credit score before giving you a mortgage. In my opinion, you should check out for both FHA loans as well as conventional loans. Compare the market rates prevailing in your area and then decide on the type of loan you want to take.
This community also has a number of lenders. You can speak to them and seek a no-obligation free mortgage consultation from them. This will also help you to get an idea of the market rates. You can then decide on the one you want to take.
The FHA loan cap is adjusted annually varies from region to region. As far as I know, FHA has announced $417000 Reverse Mortgage Loan Limit. _________________ Procrastination is the enemy of your financial sucess
The cap begins in January.
Right now, if you settle before then, you can go into an FHA Jumbo. Your lender can tell you if your region qualifies for that loan amount.
There is also the conventional loan. I think that you are still putting a substantial amount down and would still have a very good shot at closing on a conventional loan.
You didn't mention though, what your credit score was, or how you took a hit. These are very important factors. Just being late on a credit card once isn't enough to throw you out of the mortgage window, but a repo, or collection, could have a severe negative impact on your score and the underwriters perception of your ability to pay.
I don't reccomend a reverse mortgage for you though. Without having substantial equity into the property, it's easy to make your minimum payment and then in the end be upside down on your property.
Respond back answering our questions, and we can better serve you with a more informative response. Also, these questions you have could easily be answered by your lender. If they aren't, then maybe consider using another lender that is taking your concerns seriously. Builders very rarily give back deposits and will often use strong tactics to get you into a home regardless of the type of mortgage you are getting. Don't settle for a mortgage with the hopes to refinance later. That might be a set up for disaster. _________________ Elnora Little
Sunshine Mortgage Corporation
Shining a Light on mortgage lending!
Equal Housing Opportunity Lender
(800) 430-2678
Posted: Wed Dec 03, 2008 11:22 am Post subject: Loan
In the county we are in our loan does not qualify for FHA. I talked to a mortgage broker today and it looks like we are going the jumbo loan route. One thing that was causing us some pain is that my husband has only ownded his business for a year. My credit score is 600 it use to be 640. My mom has owned her business for over 6 years and brings home close to $20,000 a month. Her credit score is 660.
Did the lender give you any reason for why you do not qualify for a FHA loan? I think you should start speaking to other lenders before closing with your current lender. By speaking to other lenders you will come to know whether you really qualify for FHA loans or not. You can also refer to no-obligation free mortgage consultation mentioned by James Hogg in his post.
Thanks. _________________ Good is the Enemy of Great.
kacistephens
