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Old 10-11-2008, 11:32 AM
 
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I have heard a 20% down payment will be required. Is this true? What other qualifications will a potential borrower need in order to be eligible for a mortgage?
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Old 10-11-2008, 11:45 AM
 
Location: Great State of Texas
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That's always been the case for conventional mortgages..20% down and escrow includes taxes and insurance.

Nothing new..just going back to what worked in the past.

Don't know about FHA or VA loans though.
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Old 10-11-2008, 02:23 PM
 
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Well it depneds. I heard Obama wants to allow bankrupsy judges to maoify mortgages contrct6s. If so then a even higher down payment and more abilty to pay will come in before mortgage companies give a loan.
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Old 10-11-2008, 03:05 PM
 
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I think it will be 20% down OR additional mortgage insurance for lack of collateral, like it was in the past. Many folks don't have the 20%, but may have 10% down and they usually just supplemented with additional insurance on your payment (as long as you had the credit and income).

I'd be fine with that. You know, people in homes they can afford to pay for instead of McMansions that will pyramid upside down and can't be afforded.
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Old 10-11-2008, 04:06 PM
 
Location: Houston, TX
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I thought in the past 10% would get you a loan if your credit was good. My parents said that if you could get a loan under 8% that was good. Guess weve been spoiled the last decade or so.
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Old 10-11-2008, 04:31 PM
 
Location: Great State of Texas
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Quote:
Originally Posted by Oildog View Post
I thought in the past 10% would get you a loan if your credit was good. My parents said that if you could get a loan under 8% that was good. Guess weve been spoiled the last decade or so.
20% down, escrow for taxes/insurance, no PMI
Conventional loan

I think anything under 10% was FHA (might be wrong)
PMI and escrow for taxes/insurance

If you didn't have bank accounts to show your deposit and closing costs you needed a gift letter from whoever was giving you some money for it.
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Old 10-11-2008, 05:08 PM
 
Location: Oregon Coast
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I expect they'll require more proof of income than they did in the past. You'll probably need at least an average credit score. Yes they'll want you to have a certain amount to pay for everything in the bank. Really it's not going to be different than it was a few years back. 20% down for a conventional loan was the norm. I don't know about the FHA loans. I've never had one (FHA) as most of the time I bought one house while I already owned another.
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Old 10-11-2008, 05:14 PM
 
Location: Great State of Texas
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Credit scores didn't take a front seat years ago. You had to prove you had the money in your bank to cover deposit/closing and prove you had a job for X number of years with a steady income. A conservative debt/income ratio. I think credit came into play with interest rates. Good credit got the best rates. They put you through the wringer to get a mortgage.

I was really surprised to learn just how much they laxed the rules when the subprime bust hit the papers. Basically, if you could open the door and walk into their office and BAM..you got a mortgage.
Ok..maybe not that lax
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Old 10-11-2008, 05:17 PM
 
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1.20% down
2. A very conservative appraisal
3. good credit
4. Assests showing you have enough resources to survive a job loss for 6-12 months.
5. Three hail Marrys and a few good strong drinks.
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Old 10-11-2008, 05:31 PM
 
622 posts, read 2,851,389 times
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Quote:
Originally Posted by CarolinaCowboy View Post
1.20% down
2. A very conservative appraisal
3. good credit
4. Assests showing you have enough resources to survive a job loss for 6-12 months.
5. Three hail Marrys and a few good strong drinks.


Where are you getting these numbers from? My BIL got a 3% down loan and my wife's coworker just got 0 or up to 5% last week. I forget which it was exactly.
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