What is the qualification environment like? (PMI, loan, escrow, credit report)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Have not been following the mortgage market for a few years now... can someone give me a gist of what are the requirements now to get the best terms? Is 20% down the norm for the best terms on a 30yr fixed? What kind of income and FICO requirements are there? How long does the entire mortgage process take?
What are the acceptable front and back end ratios for conventional loans?
Never rented or owned a home before. Bank of america said no to conventional. Tdbank said yes. Credit union said we were the ideal borrower. Locked in w 30 yr conv, 10% down, 28.5 backend ratio (not a typo). Pmi rate was .32 compared to tdbank at .78. Credit score is 800.
With a 740+ qualifying credit score you need 25% down to get the best conventional rates- 40% down will improve rate or fees slightly. You can go to 45 back end ratio(the full mortgage payment including taxes and homeowners insurance escrowed or not and all items on your credit report). This does not include food, car insurance or any utlilities.
If your scores are good, you should be exploring conventional combo financing (80/10/10 or 80/15/5) for no PMI. Both require excellent scores, but both require some shopping, not everyone does the combo loans. You may not get the absolute best rate, BUT, you will get two loans where the interest is still 100% deductible (PMI is only fully deductible if you are at 100K or less). Everytime you stack up a combo against a loan w/ PMI (including FHA), you come out ahead.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.