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Posted: Thu Jul 09, 2009 9:33 pm Post subject: home buy

Hi I want to buy house in Tx but I have only 10% down payment right now tell me should I wait or buy now I am the first time house buyer, tell me will interest rate will go up or stay low. Guide me what is the best time to buy house please

gunzijjistaff · Joined: 07 Apr 2009 Posts: 712 4.51 Dollars($)

Hi Guest,

Welcome to our forum.

If you have to buy new home then you can apply for FHA (Federal Housing Administration) loan. You have 620 minimum credit score. Latest statements from bank & as you mentioned you have 10% for down payment & on this loan you have to pay minimum 3.5% down payment of loan amount. Other terms will be apply by your location.

In my opinion FHA loan is the best option for you.

Thanks & Regards.

gunz.ijjistaff Very Happy

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Niicss · Posted: Fri Jul 10, 2009 2:22 am Post subject:

Hi Guest

With a 10% down-payment, it would be difficult for you to get a conventional loan. As Gunz has mentioned, you can apply for a FHA loan which requires a down-payment of 3%. You haven't mentioned what your credit score is like. In order to qualify for a FHA loan, the minimum credit score that you require is 620. You can get better rates if your credit score is high and if you can pay some points. As far as rates are concerned, they keep on changing everyday. So it would be difficult to tell whether or not the rates would remain low.

Thanks.

gunzijjistaff · Joined: 07 Apr 2009 Posts: 712 4.51 Dollars($)

Yes, He have to apply FHA loan.

robertsmith2005 · Joined: 22 May 2009 Posts: 338 -0.48 Dollars($)

The most important criterion that lenders usually go for is about the repayment capability of the borrower. Credit history and FICO scores of the borrower provide ample information regarding financial status and the repayment history of the borrower. Lenders usually give prime importance to borrowers having a reasonable credit history with credit scores of more than 600. Credit reports of the borrower can be obtained from any of the three leading credit bureaus in the U.S.. Credit reports contain details such as the income of the borrower, his credits, and any late payments made towards rent, mortgages and credit card bills.

Another important criterion is the debt-to-income ratio of the borrower that determines the eligibility and interest rate on the loan. Borrowers having a debt-to-income ratio of 28/36 are considered ideal for a mortgage loan. However, certain lenders entertain customers with a poor debt-to-income ratio. But, loans to these customers are provided at a higher interest rate and require a high down payment.

Apart from these, the customer is expected to have a steady income and a satisfactory employment record so as to multiply his chances of getting a mortgage loan approved. The customer must be employed with a single employer for a minimum period of 2 years in order to be eligible for a loan.

Interest rates on the loan also vary if the loans are federally insured or assured by any private mortgage insurance companies.

Garysnober · Joined: 17 Mar 2009 Posts: 450 15.29 Dollars($)

Conventional loans is outta the question. But if you have good credit and good fico score with the 10% you can go for an FHA loan.

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