What is the minimum down pocket money for a mortgage loan?
My girlfriend and I both have credit scores over 700. Combined income of 100K, and want to borrow 250K. We've rewarded off everything that we owed from college (except for a $140/month student loan) so we've only save 10K. An enormous bank located surrounded by Charlotte scoffed when I asked about this...They REQUIRE at leat 5% down. Don't some of the other factor make us creditworthy? I want to get a place presently while the market is depressed and rates are low.
Answers:
Jeff,
What is your circumstance? I don't know if I trust your rationale.
1. Why would rates not go up. The dollar is as low as its ever been when compared to other currencies and the reduction is suffering from inflation as well as a recession. The Fed will have to exploit on inflation concerns.
2. No problems with the house if you are married right? That institution has never substandard. What if we split expenses. As it stands I have nothing to reduce by because I make too much (with bonus) to deduct student loan interest.
3. I guess this be supposed to be comical...The student loan is $140 per month and the interest rate is locked in at 2.9%. It makes no sense to rate if off early because I give the additional income I would use to pay it rotten to a high yield hoard account and my 401k (stock funds long term earn almost 8%) So paying it off early fairly than saving wouldn't make sense. Broke, Desperate and Stupid-Seems that you are the one underprovided even a basic knowledge of nouns.
4. Subprime mortgages are for those with bad credit. Not low down payments.
5. Our hoard equal 25k, but we do not want to put anymore than 10k down. Reason being that we can afford the mortgage, 1300-1500 dollars, with one and only 10 down. This we are fairly certain of because both of us already clear that much in rent.
In other words you are a jackass...Could someone with some knowhow in mortgage loans please answer this question?
The market isn't going up anytime soon, and I believe that you don't have adequate of a down payment to be attractive to a bank. Go rear legs after you get another ten grand or so. Source(s): Bought a house every other year since 1992, never put smaller amount than 25% down, never paid more than 5% on the loans, never put them in any boyfriends' name, and have kept all of them that be worth having. The houses, not the bfs.
Talk to a different mortgage broker. You can get a house for 0% down if the vendor is wiling to pay concessions. FHA requires 3% down and will allow up to 6% in concessions towards closing cost.
In your purchase agreement you ask the dealer to pay 3% for "down payment assistance", plus a allowance between $299- $500 (depending on the program) that will go to the assistance company. You also ask the seller to retribution up to 6% towards closing costs. Source(s): Realtor
I think FHA loans do not require a downpayment. You will want to check into this because I am not 100% positive. Good luck!
5% is not bad. My first home loan be an FHA, at around 2% down. Takes awhile to get processed, if they are still even offered.
A lot of the mortgage brokers who offered 0% down hold gone out of business.
The market isn't going to pick up any time soon, and rates aren't going up soon either.
So for a while patience is needed here.
I see five big problems with your plan:
1) If she's your girlfriend, and not your wife, you two have need of to have something set up so that if you break up, you won't have to try to split the house within half.
Joint ownership of a house if you two can't stand to live with respectively other any more is a BAD idea.
And if you and your girlfriend start pooling money for expenses, one of you is going to get hit near "the gift tax". The IRS loves two-income, not-married, share-a-house families.
2) You still hold a student loan. That means your house better have a spare bedroom, because Sally Mae is moving within, and she's bringing her brother Murphy (of Murphy's Law), and his three cousins, Broke, Desprate, and Stupid.
3) You can't put 20% down. That means you're looking at a subprime mortgage, PMI, and the risk that you find yourself upside-down. "I just get a great job offer within Florida, but I can't accept it because I can't afford two mortgages, and the bank within Charlotte won't accept my offer-of-short-sale. I really want the job, and I really want to move to Florida. HELP!"
4) You single have $10,000. And it sounds like it's your existence savings.
What if you get out of a job three weeks after you close on the house? Will it get foreclosed?
What if the transmission breaks? Will you want another loan?
5) Your income is $100,000, the mortgage is $250,000, and you still owe $140/month.
Have you done a written budget to see what you'll be left with after you breed the mortgage payment, the student loan payment, stockpile cash for home repairs, and feed yourself?
It's NOT going to be pretty.
In other words, you can't afford a $250,000 house.
Related Questions:
Can you still qualify for a mortgage next to default student loans?
if you can qualify for a mortgag with defaulted student loans how do you walk about it? Yes; you will likely have to jump through a non-conforming lender; let us recommend 1. Source(s): www.totaldebtsolutionsllc.com Hi in that, There are many loan...
Answers:
Jeff,
What is your circumstance? I don't know if I trust your rationale.
1. Why would rates not go up. The dollar is as low as its ever been when compared to other currencies and the reduction is suffering from inflation as well as a recession. The Fed will have to exploit on inflation concerns.
2. No problems with the house if you are married right? That institution has never substandard. What if we split expenses. As it stands I have nothing to reduce by because I make too much (with bonus) to deduct student loan interest.
3. I guess this be supposed to be comical...The student loan is $140 per month and the interest rate is locked in at 2.9%. It makes no sense to rate if off early because I give the additional income I would use to pay it rotten to a high yield hoard account and my 401k (stock funds long term earn almost 8%) So paying it off early fairly than saving wouldn't make sense. Broke, Desperate and Stupid-Seems that you are the one underprovided even a basic knowledge of nouns.
4. Subprime mortgages are for those with bad credit. Not low down payments.
5. Our hoard equal 25k, but we do not want to put anymore than 10k down. Reason being that we can afford the mortgage, 1300-1500 dollars, with one and only 10 down. This we are fairly certain of because both of us already clear that much in rent.
In other words you are a jackass...Could someone with some knowhow in mortgage loans please answer this question?
The market isn't going up anytime soon, and I believe that you don't have adequate of a down payment to be attractive to a bank. Go rear legs after you get another ten grand or so. Source(s): Bought a house every other year since 1992, never put smaller amount than 25% down, never paid more than 5% on the loans, never put them in any boyfriends' name, and have kept all of them that be worth having. The houses, not the bfs.
Talk to a different mortgage broker. You can get a house for 0% down if the vendor is wiling to pay concessions. FHA requires 3% down and will allow up to 6% in concessions towards closing cost.
In your purchase agreement you ask the dealer to pay 3% for "down payment assistance", plus a allowance between $299- $500 (depending on the program) that will go to the assistance company. You also ask the seller to retribution up to 6% towards closing costs. Source(s): Realtor
I think FHA loans do not require a downpayment. You will want to check into this because I am not 100% positive. Good luck!
5% is not bad. My first home loan be an FHA, at around 2% down. Takes awhile to get processed, if they are still even offered.
A lot of the mortgage brokers who offered 0% down hold gone out of business.
The market isn't going to pick up any time soon, and rates aren't going up soon either.
So for a while patience is needed here.
I see five big problems with your plan:
1) If she's your girlfriend, and not your wife, you two have need of to have something set up so that if you break up, you won't have to try to split the house within half.
Joint ownership of a house if you two can't stand to live with respectively other any more is a BAD idea.
And if you and your girlfriend start pooling money for expenses, one of you is going to get hit near "the gift tax". The IRS loves two-income, not-married, share-a-house families.
2) You still hold a student loan. That means your house better have a spare bedroom, because Sally Mae is moving within, and she's bringing her brother Murphy (of Murphy's Law), and his three cousins, Broke, Desprate, and Stupid.
3) You can't put 20% down. That means you're looking at a subprime mortgage, PMI, and the risk that you find yourself upside-down. "I just get a great job offer within Florida, but I can't accept it because I can't afford two mortgages, and the bank within Charlotte won't accept my offer-of-short-sale. I really want the job, and I really want to move to Florida. HELP!"
4) You single have $10,000. And it sounds like it's your existence savings.
What if you get out of a job three weeks after you close on the house? Will it get foreclosed?
What if the transmission breaks? Will you want another loan?
5) Your income is $100,000, the mortgage is $250,000, and you still owe $140/month.
Have you done a written budget to see what you'll be left with after you breed the mortgage payment, the student loan payment, stockpile cash for home repairs, and feed yourself?
It's NOT going to be pretty.
In other words, you can't afford a $250,000 house.
Related Questions:
Can you still qualify for a mortgage next to default student loans?
if you can qualify for a mortgag with defaulted student loans how do you walk about it? Yes; you will likely have to jump through a non-conforming lender; let us recommend 1. Source(s): www.totaldebtsolutionsllc.com Hi in that, There are many loan...