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Guest

Hello, I am 23 and my apartment lease is expiring in Feb 2010 and I was thinking of buying condo or townhome instead of renting. They are building some new condos/townhomes close to my apartments and with the tax credit extension my interest has increased in getting a mortgage for a condo.
Here is my info
My income is $2700 gross monthly, credit scores are 770+ for all 3 bureaus, 2% utilization, have 5 tradelines(opened between Sept 04-Aug 0 Cool

, I have never had an installment loan(will this hurt?), and I could do a down payment of 7k, how much can I afford and what is the best way to get the best interest rate? I also had questions about down payment assistance programs for first time home buyers in MO? any info would be appreciated as I really don't know anything about mortgages thanks

raymond · Posted: Sun Nov 15, 2009 8:54 am Post subject:

I'd look into a USDA guaranteed home loan if I were you. Next to a VA guaranteed home loan, they offer the best terms - 100% financing, so you won't need a downpayment assistance program, and no Mortgage Insurance. FHA-insured mortgages are your second best choice, but they're 3.5% down and have Mortgage Insurance.

There's lots of USDA areas in Missouri. Find a local Realtor who specializes in USDA and have her introduce you to a Loan Officer that also specilizes in USDA.

gmakerley · Posted: Sun Nov 15, 2009 9:49 pm Post subject:

check with the state housing authority in missouri - i don't recall, but they may have a first-time homebuyer product that would help with your circumstances also. heed raymond's advice also.

don't worry about installment debt - your revolving will be sufficient to work with. rates are good now...your credit standing will get you as good a rate as you can find.

Guest

Thanks for the feedback, the homes i'm looking at are located in the Kansas City Metropolitan Area so I'm sure a USDA loan wouldn't work for me. Do you think I could afford a $120K mortgage with an income of $2700 or is that too high?

gmakerley · Posted: Sun Nov 15, 2009 10:20 pm Post subject:

that might work, but there are other factors that come into play other than the loan payments on $120000. assuming $5 per thousand, that's $600 per month. then, you have to factor into the equation the following: hazard insurance premiums and real estate tax (monthly), any mortgage insurance that's required. the taxes alone could cause you to be disqualified, depending on how much they are.

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First time buyer, have question about interest rates