My boyfriend and I have decided to buy a house. We know that it's a "buyer's market" right now and our apartment lease is up in March so we've started looking. The part that scares me is that we don't have a lot of cashed saved...only about $5k presently, with no family to help out. We've both got pretty good credit. But I'm hearing that lenders are not really offering 80/20 mortgages anymore and PMI is a killer. The homes we're interested in are all around $200k... so there's just no way we'll come up with 5% in time and closing costs too...
Can anyone share their experiences?? Can we do this with so little cash saved? I don't want to compromise on the house price because I know we have the income to afford the payments...We are willing to wait awhile, but what if a great house shows up on the market SOON?
Thanks in advance!
2007-09-03 13:58:26 · 7 answers · asked by Grace 3 in Business & Finance ➔ Renting & Real Estate
You are correct about the PMI being a killer.
You are also right about lenders not doing 80/20 mortgages, with all the sub-prime stuff going on right now.
I would suggest saving like mad for the next few months and get the 20% down.
Cut your expenses to the bare bone and save, save, save.
Not only will 20% down keep you out of PMI, but you will have a lower monthly payment the more you put down.
Here's a link to a really good site that gives some ways to save even more money.
http://www.freewebs.com/savingslist/
Look through it and see where you can cut your current spending even more.
Good luck.
2007-09-03 14:06:18 · answer #1 · answered by mister_galager 5 · 1⤊ 1⤋
Lenders are are not really offering 80/20 or better mortgages except to people with good credit. It is the subprime borrowers with low credit scores, high debt-to-income ratios and employment history problems that have such a hard time getting loans. People with good credit are still getting loans.
There are also lots of other ways to purchase, for instance you can buy a VA foreclosed home for 0% down, 30 year fixed-rate mortgage at 6.5%
Also, while a lot of the bigger mortgage brokers are shying awau from such loans, many smaller local banks are happy to lend on real estate.
Partly, it depends on what part of the country you are in, but financing for you should not be a problem.
2007-09-03 14:13:18 · answer #2 · answered by rlloydevans 4 · 0⤊ 0⤋
Instead of guess go to a loan officer at your bank )if they do mortgage) and talk with him/her.
Are your scores at least 680-700?
I think we will see a great changes when the government announces its bail out and crack down on lenders here in the next weeks.
Go talked to the lender then happy home shopping.
We can sit and list all kinds of stuff that in the end means nothing.
2007-09-03 14:07:36 · answer #3 · answered by Anonymous · 0⤊ 0⤋
First time home buyers do qualify for a WHEDA loan, look into that.
The Pueblo Colorado people (that government site) has all sorts of free brochures they can send about first time home buying, financing, mortgages, etc. They're also showing a lot of that stuff free online as well.
2007-09-03 15:22:21 · answer #4 · answered by Elaine M 7 · 0⤊ 0⤋
Just a little throw in here. Since you are not married, you each will have to qualify for the loan unless one can do it alone and just put the other on the title
2007-09-03 20:29:54 · answer #5 · answered by Bill P 5 · 1⤊ 0⤋
Your contemporary month-to-month duties are approximately $900 and you convey living house $4100 a month. What do you do with something of you funds? in the experience that your credit is greater than approximately 630 you are able to desire to be waiting to get a widespread and 2d loan on the townhome and do away with the PMI. PMI is a rip off, i could do notwithstanding I had to do to do away with the PMI. With that plenty earnings and so little expenses you are able to desire to have some value low value rates. i could look at putting adequate right down to drop the PMI if this is a hazard. yet notwithstanding in case you won't manage to then it nevertheless looks you are able to desire to be waiting to handle to pay for the money and nevertheless have adequate left over for utilities. it variety of feels which you will desire to be waiting to stay conveniently in case you reside at that pay value. this is a extremely smart determination to purchase extremely of hire in case you intend on staying placed for the subsequent 4 or 5 years. I rented for ten years and in basic terms at the instant offered my first living house and am greater beneficial than happy with it. I too had chilly ft for a pair of month previously and a month after making the 2d greatest determination of my existence. it variety of sounds like a extensive dedication yet you would be spending on the brink of the comparable volume to hire and years down the line you nevertheless have not something to coach to your 1000's of dollars spent. solid success consisting of your purchase, and congrats.
2016-11-14 02:57:52 · answer #6 · answered by ? 4 · 0⤊ 0⤋
i think you should save more money before you buy.or if you have money in a 401k plan you can do a withdrawal to buy your fist house.you dont want to be house poor.another consideration is what happens if you and your boyfriend break up ? maybe now isnt the right time to buy.
2007-09-04 01:46:03 · answer #7 · answered by Anonymous · 1⤊ 1⤋