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Old 08-03-2009, 05:58 PM
 
199 posts, read 498,115 times
Reputation: 69

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We are meeting with a broker on Friday and was wondering if we could/should get a conventional loan with 5-7% down. According to their site the rates for conventional are 5.1% (5.3% APR) and for the FHA they are 5.5% (6.2% APR).

Were trying to get a 225k loan with around 15k down (around 7.5% down).

Can we get a conventional loan with that little down?

We have 750 credit.
$220 in student loan
$250 in car loan

Gross income is 83k a year.

What do you think?
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Old 08-03-2009, 06:12 PM
 
28,461 posts, read 76,299,213 times
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Might be very close, but the good credit score is going to help. The low car payment (I assume that is monthly) and very small student loan are also in your favor. There are lenders that will still let you do as little as 5% down, but to get the best rates avoid PMI you really should should for 20% down. The other option is to do the math on a 5/15/80 deal, where you use an initial second to avoid PMI -- you might have a good score to not get a terrible rate on the second. If you could get to 10/10/80 with your score you should be in good shape with several lenders...

Are you first time buyers? If so there may be lenders willing to "front" you the refund amount -- I generally discourage that sort of think, but it may be an option to pursue, so long as you get the DETAILS on how they are fronting that money...
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Old 08-03-2009, 06:14 PM
 
199 posts, read 498,115 times
Reputation: 69
Thanks - I will look into that. Any other information would be great. Little nervous going in for the first time on Friday.
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Old 08-03-2009, 06:24 PM
 
199 posts, read 498,115 times
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and yes we qualify for the first time home buyers credit.
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Old 08-03-2009, 07:26 PM
 
Location: Plano, Texas
1,675 posts, read 6,654,494 times
Reputation: 694
As Chet suggested your best bet is do a first and 2nd mortgage to avoid pmi. With your scores you can easily qualify for a conventional loan. Some states are more difficult than other states getting 2nd liens, so based on the state you are buying in this may not be an option.
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