You all are missing the biggest issue at hand.....Is the Condo HUD/FHA approved? If not you will have to do a spot approval and it could take months!! Dont go under contract or move forward without answering this question.
call me if I can be of assistance.
Ryan 888-271-2221
Community Mortgage

Wed Apr 30 2008, 10:13

Gigi your best bet is to talk to a financial manager from a local lending institution. This wont cost you anything but will remove all doubt as to what you will qualify for. What condo's your looking at are going to play a part as well as many banks now have a sort of approval form if you will for different associations. Some require 20% and others may not. So you really need to talk to the experts in those fields and get a definate answer from them. I would be happy to refer you to two very good local West Chester financial agents if you wish. Best of luck to you. Debbie -

Tue Apr 29 2008, 15:28

G,

Hello! Ok there will be alot of things to take into consideration especially now when your applying for a loan. And with the credit scores that you have it seems that you may have many options. Depending on where your buying USDA maybe an option its 100% financing with NO mortgage insurance and conforming rates(a+ rates) or theres FHA 3% down with mortgage insurance and conforming rates as well or theres standard conforming at 95% financing. Depending on what program your using a lender will allow debt ratios between 41-50%. Also depending on what program you go with a lender will allow sellers assist between 3-6%. Please dont hesitate to contact me if I can be of further assistance 814-308-3276. Thanks and good luck

Tue Apr 29 2008, 06:38

I totally agree with the previous two answers, especially the FHA idea. FHA loans have become much more popular in the last couple of years, due to the loosening of some restrictions. FHA stands for Federal Housing Administration - http://www.fha.com/. In addition, they allow you to do up to a 6% seller's assist, which means if you are buying a $200k home, the seller can give you back as much as $12k. Your closing costs are typically 4% of your purchase price, and with the extra 2%, you could use that for buying down your interest rate, or other areas.
As a Buyer's Specialist, I do a lot of work with first time home buyers and I always tell them it is very important to work with a lender that you know has a reputation for excellent customer service, and has a proven track record. I do a lot of work with an agent at Wells Fargo and he is really incredible. Always does a great job.
Two more bit's of advice -
1) If you are not currently on a budget and know how much you can afford on a monthly basis, do so. The lender may approve you for a certain amount, but you may only be able to afford so much a month, which is typically less than what the lender will approve you for. So know what that number is and stick to it.
2) Find a good Realtor - one that does a lot of work with first time home buyers and knows the programs available and the area very well.

Good luck Gigi

Tue Apr 29 2008, 05:21

Gigi your best bet is to talk to a financial manager from a local lending institution. This wont cost you anything but will remove all doubt as to what you will qualify for. What condo's your looking at are going to play a part as well as many banks now have a sort of approval form if you will for different associations. Some require 20% and others may not. So you really need to talk to the experts in those fields and get a definate answer from them. I would be happy to refer you to two very good local West Chester financial agents if you wish. Best of luck to you. Debbie

Mon Apr 28 2008, 19:45

Hi Gigi,

I'm by no means an expert, but from my recent experience, an FHA loan would be a great option for you! I just got approved for one. They will finance you up to 97% LTV, and with your price range and down payment, it sounds like you have the funds for the 3% down needed (although there are other ways of obtaining that or closing cost assistance as well) and there are no income restrictions. I believe you need a 620 credit score and as far as my broker told me, they throw out your high and low scores, so it looks like you just may have made it. But I urge you to do what I did, sit down and talk with an FHA approved lender and weigh all your options. Mine truly helped me figure out what was the best option for me!

Hope this helps!
Jessica

Mon Apr 28 2008, 19:02