Posted on: 16th Dec, 2008 09:08 pm
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.
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
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
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.
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.
Will you be residing in the the new property or is this an investment for the time being until you retire?
that's not a question that occurred to me, parmoney; but you may have hit on something.