Long Island mortgage lending standards (Wantagh, Bellmore: 2013, insurance, credit score)

[paulyc44]

Looking to buy (Bellmore / Wantagh / Seaford) Sept 2013.

Budget: $360,000.00
Credit (Wife & I): 780 / 780
Income: $130,000
Savings: $25K for closing costs and such
Debt (Student Loans): $40K

DOWN PAYMENT: Zilch.

1.) Will I be able to get a loan do you think?
2.) If so, what percentage rate do you think I'd fall into?

[kunk10]

yes, FHA. you may even get sellers concession which can help. FHA will require 3.5% at a minimum though

[zulu400]

You should be able to get in on a loan. FHA - It was 3.5% previously, it might be 5% down now (mandatory) would be the best bet.

You should be able to get in on 3.75-3.875 % mortgage interest rate today. Good luck.

Edit: Your credit score is pretty good. You should get in on 3.5% down easily.

[kayo_michael]

age?

[superfly10]

You'll need more money saved/to put down. Also, consider moving expenses, fixing things that immediately break and money wasted when the guy from home depot sells you the wrong stuff. Bottom line, take what you think you'll spend on that stuff and double it.

Even at 3.5% down (FHA Minimum if it hasn't gone up) you'll need money to cover aprox 12-15K in closing costs PLUS the bank will want to see financial reserves. If you're going to be gifted money from a relative, do it early so the funds are "seasoned" before you file (they should be in your account 3-6 months prior, depending on the bank). Otherwise, the bank will want all kinds of paperwork about where the money came from.

Your scores are strong, but strong scores don't help you much on an FHA rate once you've passed the minimum. They might just push you through underwriting faster, which is a good thing.

The high scores would help get the rate down with a conventional loan, but you'll need more money to put down.

If you financed 350K at 4%, you'd have about a 1,670 mortgage payment.
Figure taxes are 700-750 a month?
Homeowners 125-150?
MIP (Mortgage insurance for FHA) will be a couple hundred - not sure of the percentage right now but it's gone up.
So, you're in the neighborhood of 2800 or so a month on your payment, conservatively. Assuming you have low debt besides your mortgage, FHA DTI should be fine assuming no other big payments.

SAve a bit more money.

Good luck!