Financing in 60616>Question Details

First-Time H…, Home Buyer in Chicago, IL

First Time Homebuyer.

Asked by First-Time Home Buyer, Chicago, IL Fri Aug 14, 2009

I am new to the home ownership process and am trying to get a gauge on lending options. A quick snapshot of my background is steady employment (63K for salary), looking to put 5% down, and 660 credit score. What are my chances?

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0 votes Thank Flag Link Wed Sep 1, 2010
Whether this question is old or not, it is a valid question for first time home buyers. I suggest you get advice from your bank/lender first. But, based on the information provided, your chances are very good. I know that as of now, FHA does offer min of 3.5% down with your steady employment and credit score.

Mike Yun, Broker
Jameson Real Estate
(414) 526-8998
0 votes Thank Flag Link Mon Aug 30, 2010
This is an aged question asked by somebody during August 2009. I recommend that remove this question from active consideration and discussion.

Please remove me now from recipient of updates that are initiated from this question and string of answers. Thanks.
0 votes Thank Flag Link Tue Apr 27, 2010
I would agree with some of the answers below regarding looking into FHA loans. They do offer pretty competitive rates and with your credit score of 660, which is average, that might be your best option. However, I would not irrationally jump to buy a place because of the lingering tax credit expiration. You should get good advice and know exactly what you are pre-approved for before jumping into anything. There are plenty of great deals out there and probably will be for a while and rates should stay historically low for some time so you have time to get comfortable to know exactly what you can do. if you can take advantage of all three, a good deal, a low rate and the tax credit, that would be nice but two out of the three is not bad either!
Web Reference:
0 votes Thank Flag Link Tue Apr 27, 2010
Act Now Before It's Too Late ~ Take Advantage of Your First Time Homebuyer Tax Credit.… (click here for article).

YOU MUST GET GOING ON THIS NOW. Deadline for your home purchase and escrow closing is closing fast ... and is November 30, 2009. Contact your REALTOR today and get going for your home purchase and qualify for this tax credit.

Harrison K. Long
Realtor and broker, Explore group, Coldwell Banker Previews, Irvine, CA.
0 votes Thank Flag Link Fri Sep 25, 2009
With the above information, you can easily qualify for FHA loan... Apart from this, you need to satisfy other requirements... If you plan to go for conventional loan then you must work on your credit score to bring it over 700 and should also have more funds for down payment...
0 votes Thank Flag Link Wed Sep 2, 2009
As you've already been told, FHA sounds like the best option for you since you're looking to put 5% down and FHA requires a minum . Also, time is limited to capitalize on the $8,000 first-time homebuyer tax credit as it expires on Monday, November 30, 2009. There is obviously plenty of time to get your FHA loan approved, but not a lot of time to find a home you like.

I would recommend contacting a broker or lender who is FHA approved to get pre-approved as soon as possible. A pre-approval is a commitment to lend from a bank. This commitment to lend allows for borrowers to close very quickly once a home is found. When a borrower has a commitment from a lender, it can drastically improve the negotiation of a sales price with a seller since it is as close as a borrower can get to actually having the cash in hand to pay for a home.

Finally, keep in mind that FHA rates are not determined by the Federal Housing Administration, but rather the individual lenders who are approved by the Federal Housing Administration to approve FHA mortgages. Therefore, be sure you're getting the lowest FHA rate possible.

I hope this information helps. Best of luck!

Total Mortgage Services
0 votes Thank Flag Link Wed Sep 2, 2009
FHA is the way to go. The mortgage insurance is less expensive and your rate will be lower.

I would be glad to provide you with details.

0 votes Thank Flag Link Tue Sep 1, 2009
I agree with earlier postings. FHA would be the right mortgage solution based on your financial snapshot. Given your 660 credit score, things stack in your favor if you have little to NO debt.
0 votes Thank Flag Link Thu Aug 20, 2009
Sounds like an FHA loan would more than suit your needs.
0 votes Thank Flag Link Mon Aug 17, 2009
This is a great time for you to buy. The rates are low the prices are down and if you are eligible the $8000 tax credit is there for the taking. I can show you just how easy it is to purchase FHA.

Daniel Kenna
Sr. Loan Officer
5/3 Bank
0 votes Thank Flag Link Mon Aug 17, 2009
You may wish to take a look at this Government site which has all the current Fed. Government Housing Loans/Grants.…

You can get specific information, compare options, or take a short questionnaire to determine your eligibility for each program. (Hud, FHA, Rural Housing, Veterans ect.)

Good luck, Dunes
0 votes Thank Flag Link Mon Aug 17, 2009
First Timer:

Based upon the limited information you provided, chances are pretty good. You would be looking at an FHA loan, assuming you are not a veteran and do not have your certificate of eligibility.

If you want to get into specifics, don't hestitate to contact me.

Kurt Clements
Senior Vice President
GSF Mortgage
3933 75th Street
Aurora, IL 60504

Office: 630.806.7016
Cell: 630.430.1091
0 votes Thank Flag Link Mon Aug 17, 2009
Only a mortgage broker can state have detail review of your file. However it sounds as though you have strong opp. purchasing a home !

Keep in mind you receive annual tax benefits owning a home.

National Featured Realtor and Consultant, Mortgage Loan Officer, Credit Repair Lecturer
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0 votes Thank Flag Link Sun Aug 16, 2009
In today's market, FHA is usually the most desirable option for a few reasons

1. Extremely competitive interest rates
2. Lower downpayment requirements
3. Ease of qualification

In addition to these three items, there are a few areas where FHA usually excels. For example, if you are looking to purchase a home that needs upgrading (common these days with all the foreclosed and distressed sales, and reduction in developer activity), you may find either the streamlined 203k or 203k after improved value mortgages very useful. These programs are much more common now, many of the best deals on the market are distressed and have difficulty fitting into the normal residential mortgage program. They allow you to purchase a home, with a low down-payment, borrow the money to make necessary repairs or renovate, and have no payments for six months to complete construction. Afterward, the loan is recast into a traditional FHA mortgage. There are a few conventional lenders I know of with a competitive product, but their credit score requirements are much tougher. My construction group works with FHA 203k Programs, but many don't. 203k requires that the contractor have funds to start and gets reimbursed through the 203k program via a draw schedule, so keep this in mind if you have a contractor, or plan to act as your own GC.

Individuals with a large down-payments and very high credit scores may find the conventional market appealing. It really is, as mentioned by a few agents earlier, a conversation you should have with a few lenders. Construction loans in the conventional market are very tough to obtain.

Keep in mind that the FHA is a little tougher to navigate in the condominium market. There are some changes looming regarding FHA approval, spot approvals, owner occupied rates, etc that will greatly affect buyers ability to use FHA financing in condo purchases. Working with an experienced agent and a knowledgeable lender is crucial.

I refer a few trusted lenders to my clients. A lender who excels at 203k may not be the same one who excels at conventional lending. Talk to a few to get all your options.

Either way, best of luck and feel free to contact me with any questions.
0 votes Thank Flag Link Sat Aug 15, 2009
Most people today seem to be using FHA or if they have VA eligibility, this would work too. The lender's I use here tell me the minimum credit score is 620. You need a 3-1/2% downpayment and closing costs are going to be between 3-6% on average for my area. Here in Oklahoma it is very common for the seller to pay the closing costs for a buyer. You might also look to see if your state offers Bond money or Grant money (Downpayment assistance for 1st time homebuyers). Oklahoma actually has 32 million worth of Bond money available on August 25th for 1st time buyers. There are inclome guidelines and they will want you to live in the home for a period of time or repay some of the dpa back on a proration.
Find a Realtor who is knowledgable of 1st time homebuyers and the proggrams available and you should be successful.
0 votes Thank Flag Link Sat Aug 15, 2009
Yes, I agree FHA is your best bet, you can actually put as little as 3.5% down payment. Your credit score would be fine for an FHA loan and the process is just as quick. Upon applying we would know the same day you are good to go.
0 votes Thank Flag Link Sat Aug 15, 2009
Yes, FHA probably is the only way to go in the current market. I have a lender who has focused on FHA lending long before it came back in fashion recently, but you should speak with a couple lenders since it does not cost you anything.
If your looking for a condo, it may be more difficult to find a building that qualifies for FHA and if you want a house, you might not be able to get a short sale or foreclosure if they need a lot of work because FHA is picky about the condition of the property. FHA 203K loans can also be a possibility for a property that needs work and this lender has much experience with those also.

0 votes Thank Flag Link Sat Aug 15, 2009
As Patrick mentions, inquiring about an FHA loan may be beneficial. Our recommendation is to begin your buying process by initially meeting with several loan specialists in an effort to become familiar with your options.

Remember to request a "Good faith estimate" from each. This is a written account of rates and programs that are quotes to you by the agent.

Best wishes
The Eckler Team
0 votes Thank Flag Link Sat Aug 15, 2009
Talk to a lender to be sure. You may need to come up with more of a downpayment because of your credit score if you plan on doing a conventional loan. I would look into doing an FHA loan as well you may have a better chance.
0 votes Thank Flag Link Fri Aug 14, 2009
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