1st Time Buyer, What Type of Loan?

Question

What type of loan should I be looking for, for a first time home buyer with zero money down?

We both have credit scores of over 750 and our combined income is over 120k. What type of programs could we qualify for to get the best deal?

We're looking at a place at is going to be between 350-400k.

Other than the special types of programs out there, I'm looking at either a 80/20 or a 100% financing. Would a loan officer help us decipher the best deal between the two?

Thanks

Answer 1

I am not a loan officer. The "loan officers" that post here are nothing but wanna be's. The real ones are not posting online, they are too busy with their clients. I hold a little over 20 mortgages though, so I am not exactly unknowledgable.

You should get a great deal. Stick with real banks or established loan brokers. The sharks are getting desperate and you will get ripped off online.

All that said, the 80/20 will give you a great interest rate. The rate drops with 100% because the market is turning and those types of loans will be less available. Not that you would have a problem, you qualify for the prime rate.

Can you come up with 5% down? That is all you will need.

Answer 2

We financed our home with a 80/20 100% financing when 6 years ago eventhough we had saved money to use as a downpayment. We later decided that we wanted to use that money as an emergency fund and that turned out to a good idea.

I have to disagree that loan officers on this board are scammers or not legitimate.

We run an online service like Lendingtree and a company representative visits this forum to answer questions. Sometimes they have nothing to do with loans and sometimes they do.

We offer free, no obligation quotes (from 4 national lenders), if you want to see what kind of interest rates are available. These lenders are the same as your neighborhood banks.

Good luck. You have a great credit score and should have no problem getting a loan.

All in all, most people on these forums are nice people and offer great advice. If anything looks suspicious, just ignore it and go with your gut instinct.

Answer 3

Start with an attorney. Pick one that knows real estate transactions, and is willing to spend time explaining the whole process to you start to finish. Your attorney is the only one that works strictly for you, and will be there start to finish.

Then start choosing your loan source. Interview a minimum of three, and as many as you can stand. Here are the signs that you want to fire the loan officer and stop returning their calls, and get the loan elsewhere:

One, if they do not like the idea of sending your attorney copies of everything for their review,

Two, if they start by talking programs rather than with questions about your situation and goals.

Answer 4

Well, on a 80/20 you would not have to carry PMI, but the rate on the second loan will be higher. On 100%, you will have to carry PMI, but with one loan, you will be locked in with one rate. I can help! Shoot me an email to [e-mail], and we'll see whats out there!

Marty

Rebuttal to Janet P

I am a legitimate lender. I have helped several people on the message boards, as well as clients that realtors hand to me. My job is to broker mortgages, no matter where the lead comes from. I work for Premier Mortgage, and my company is listed with the Better Business Bureau.Maybe I am the exception rather than the rule, but I find it disheartening that you feel that you must slander me when the fact is that you have never dealt with me nor do you know me personally. All I did was try to offer advice. I am not desperate, I close several loans a month, as per my job title. I am licensed to do what I do. In short, could you please refrain from calling me a "loan shark" in the future?

Answer 5

Listen to the Dave and J show. They have just covered all the loan types and cover tons of stuff for first time home buyers. You can listen to all of thier show on their website www.daveandj.com . There is some great info for first time home buyers...the best things are the questions they tell you to ask so you know you arent getting taken. They are always there to answer your questions too. You can email them and they will answer your questions on the air. it is cool.

oh...and you can listen to them on iTunes also.