Town House In Westchester ...Please advise (New York, York: renting, mortgage broker, good credit)

[nycman2010]

Here is my friend's situation.... They having been living here in Fleetwood for the past several years ...they have been renting paying aprox $1,200 for a 1BR....they would like to own there own place..

They can put down between...$20-$25K and the wife has good credit and works at a bank and her husband has Excellent credit and recently had to close a business so he is looking for new opportunity's.

Please advise regarding this situation.!


Thanks in advance

(Rob)--Friend of family helping in the search

[SLP247]

Hi Rob,

Well your friends are in a tough position. First the husband: Most businesses do not close on good financial terms. Chances are his credit is or will be taking a hot on that. Next, He is unemployed so there is no income he can show. When he does get a job, it will be a new job and the banks will look at that as a negative. Only hope would be if he got a new job doing EXACTLY the same thing as he did before. This they might consider, but they really like to see you in your current company and position for two years or better.


Next is the down payment. The down payment is not simply a percentage of the purchase price, but also included taxes, tax escrow, attorneys fees, appraisal fees, loan doc fees AND the % you plan on putting down.

Since you do not say what price range they are even considering, I can tell you that $25k is not going to get you very far. Many lenders are looking at 20% and even 30% down now. I am still working with 5% down deals, but the credit and salary must be GOLD! aka: over 750 combine score and even with that a $300k home with 5% down will run you somewhere between $30k and $40k to purchase.

Their best bet is to speak to their bank. She works for a bank, but not all bank are issuing mortgage loans today. Here is a great link for First Time Borrowers to follow and study. The State of New York Mortgage Agency (SONYMA)

WARNING: Be very careful of any mortgage broker who promises you they can get you financing. You do not have to look far as to people who have already tried that route!