Is it possible to obtain a mortage payment of $2000 or less per month, for a house from 500000 to 650000?

Question

I live in Ca and it would have to be 100 percent fiancing mortage, and my credit score is around 580, I would not want to pay more than $2000 a month, in order to manage other bills.

Answer 1

A purchase price of 500k-650k is very ambitious. If you had 10-20% down you could find a payment for about $2,000/mo (You would be loosing equity every month). But do not fret, there are options for you to find a home that fits your needs.

There are many state and government agencies that assist first time home buyers finance a home in California. The main one is www.calHFA.org

CalHFA offers below market rate financing as well as down payment assistance. Some of the funds you do not have to make payments on.

Many local Cities and Counties have also begun their own assistance programs. The city of San Francisco will assist home buyers with up to $100,000 to buy a home.

These programs are subject to minimum credit requirements and income limits.

By increasing your credit score you can open up many more options than are currently available to you. Sometimes paying down a few credit cards can give you the boost needed to qualify for better financing terms. For more information on credit visit Fair Isaac's site (They created the credit score) www.myFICO.com

~Danke Schoen

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Answer 2

Looking at the your info, it seems you can't really afford to buy a half-million dollar house. Let's take a closer look at the numbers.

1. Your credit score is 580. A credit score near 800 is considered really good. Your score is bad. The score implies you have had trouble managing money in the past.

2. A half-million dollar house. This amount is a lot for house. Yes, I know it's CA. Hey, I don't drive a Porsche because I can't afford it; not because I don't want to.

3. A $2K monthly limit. A $2K monthly limit implies either you don't make that much money or you have like 12 kids to support. Either way, it goes back to previous idea; you really can't afford a half-million dollar house.

4. You forget to mention all the other costs that goes with owning a home. You need to set aside a few hundred every month for repairs. Don't forget taxes.

Bottom line, I think you're asking the wrong question. Ask yourself, can I afford a house 1st.

Answer 3

The days of 100% financing with a 580 fico score are slowly coming to an end. The foreclosure rates on these types of loans are way too high. Lenders aren't willing to take the risks anymore. My suggestion to you is to save some money for a down payment, and clean up your credit then try to purchase a home. One thing that you have to remember is that you'll also be paying property taxes, which on a $500K house in Ca is a minimum of $520.83 per month, many areas in Ca are much higher. I purchased a new home in 2004 for $420K, the property taxes are $8,880.00 per year. That's $740.00 per month. The only way to keep your payment at or around $2K per month would be to do a Negative Amortization loan. The minimum fico requirements are around 660 for that type of loan. Most lenders will only go up to 80% of the value of the house on a first mortgage, with a 15% 2nd mortgage. So you would still need at least 5% down plus closing cost.

Answer 4

I do loans in Southern California and you can't get 100 percent financing with a payment lower than 2k a month. Oneofyouroptions is to come up with 10% down and get a negative ARM loan.

Although this won'thelp you get 100% financing with a payment at 2k, you should run your own credit at one of the credit bureaus online (order a tri-merge or whatever they call it where they run all three credit bureaus) and dispute any "false" negative info online. The companies that put that negative info have 30 days to show evidence or the bureaus will remove it from your report.

If you're in SoCal, send me an e-mail and if I can find a pre-foreclosure with a mortgage payment around 2k, I will let you know.

Regards

Answer 5

No. At an average interst rate, a $2000 payment gets you into a $300,000 OR LESS house. Plus, with bad credit, you're going to get a jacked up interest rate with PMI, or an 80/20 loan. Doesn't look very feasible. You'd be better off improving your credit, getting a $1000 a month apartment and saving the other $1000 every month, while paying off other bills.

Answer 6

With a credit score of only 580... TERRIBLE SCORE... you would be lucky to find a 100 percent loan. You can expect to pay about $10 per $1000 you finance... but it may be a lot more than that, say $20 per $1000 because of your bad credit score.

Answer 7

Nope - first of all, your credit score is not good. You have to bring your score up! Have you even looked into that?

Second of all, even an interest-only loan (which is a HORRIBLE loan!!!!!!!!!!!!!) would have a payment of over $2700.00 per month.

A standard mortgage at 6.5% for 30 years ($500,000) has a monthly payment of almost $3200.00 per month.

I think you have some wishful thinking. Not to mention you'll probably have to pay PMI if you are financing that much with nothing down as a deposit.

Answer 8

I work at a real estate office in TX and you can get 100% financing with that credit score, BUT in a situation of 100% financing you should expect to spend about 1% of the borrowed price for your monthly payment. SO if your home costs $600,000 your monthly payment would be about $6,000, but that is only with 100% financing. If you put money down it will obviously change your payment.

Answer 9

you can do a interest only loan, risky because you're never paying into principle and you're banking on real estate appreciation. those loans are ARMs and you better need to re-finance in 3-5 years, otherwise you can get hit when the rates adjust and you're force to pay both interest and principle.

so, yes. you can keep payments at around $2k, but you're looking at an interest only thing. The ARMs, with really good rates, are meant for those with scores in the 600-700 mark. Always check, never hurts. ARMs is another good way, too.

Good Luck

Answer 10

It's possible but not for someone with that low of a credit score. Try looking into an interest only mortgage but i wouldn't recommend it