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I was wondering is it possible to get a good rate with no or little money in savings?
My husband and I have 700+ score, 20% debt to credit ratio and are looking to get a 30 year fixed Mortgage with no down payment, maybe thinking 80/20 if it is possible.
We don't have much in savings as we never really thought seriously about buying a home, but now we are looking to buy our first home and are starting to save like crazy, we have about $3000 in savings so far.
Location: central, between Pepe's Tacos and Roberto's
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Quote:
Originally Posted by atlmburns
I was wondering is it possible to get a good rate with no or little money in savings?
My husband and I have 700+ score, 20% debt to credit ratio and are looking to get a 30 year fixed Mortgage with no down payment, maybe thinking 80/20 if it is possible.
We don't have much in savings as we never really thought seriously about buying a home, but now we are looking to buy our first home and are starting to save like crazy, we have about $3000 in savings so far.
Any advice would be a great help.
I don't think that an 80/20 is going to happen. Lenders are freezing HELOC's and dropping the combined loan to value limits on their second mortgage products because of the market risk associated with holding second position.
Your best bet is an FHA loan. Minimal down payment requirements, and the down payment can come from acceptable sources such as family, employer assistance, or non-profit entity. No asset reserves are required. Look into the Nehemiah Program in conjuction with an FHA loan.
FHA requires 2.25% down payment.
You can use Nehemiah to have the seller pay for your down payment/closing costs. With FHA you pay a 1.5% funding fee, and a low monthly MIP/PMI payment
MyCommunity/HomePossible is zero down, but the rates are higher than FHA.
There is not 1.5% funding fee, and you can still get a low monthly PMI payment.
We are looking to buy in Wallingford CT, we are relocating from CA and want to buy instead of rent as we have two small children and feel they have moved enough in there little life time, and want to give them some stability and a place to call home, if we can't buy then we will probably stay here until we can.
Also we are not vetrans so VA Loans are out.
I pressumed that because our Credit Score was good that we wouldn't have a problem, looks like we need to re think our plans.
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,849,438 times
Reputation: 958
Keep in mind that with an FHA loan you will get better rates than you could with any conventional 30 year program at 100%, and many at 80%, so it's a very viable option. I'm not sure if you are hesitant because you feel that there is a stigma attached to this program, or because you are not understanding the concept of a down payment assistance program, but you absolutely can purchase a home with an FHA loan using a DPA without coming out of pocket.
Keep in mind that with an FHA loan you will get better rates than you could with any conventional 30 year program at 100%, and many at 80%, so it's a very viable option. I'm not sure if you are hesitant because you feel that there is a stigma attached to this program, or because you are not understanding the concept of a down payment assistance program, but you absolutely can purchase a home with an FHA loan using a DPA without coming out of pocket.
I think its because we don't know enough about FHA Loans, I'm gonna do some research and see what I can find.
Last edited by atlmburns; 03-04-2008 at 06:16 PM..
This not ture ........ I have loan i am writting now that is 100% Fulldoc
but you can do it.
Is this a regular or FHA?
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Full doc 100% can be done.
