Financing in 20874>Question Details

RC, Home Buyer in Rockville, MD

First time buyer w 800 credit score, buying home for mom hopefully w/ as little down payment as possible. Advice re best loan option not FHA? Thx!

Asked by RC, Rockville, MD Sat Oct 29, 2011

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I agree with all of the comments that 5% conventional would likely be better than FHA, but wanted to add one important point. Depending on your goal with the purchase you may run into problems going conventional if you are not going to occupy the property. Your down payment requirements will likely increase if you are a non-occupant borrower (think investment property). FHA allows for non-occupant borrowers who are related with minimum down, so that may end up being your best option. I'd be happy to help analyze your situation in more detail.
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0 votes Thank Flag Link Mon Oct 31, 2011
You can do conventional with as little as 3% but 5% is preferred by lenders. My advice would be to contact several local lenders and see what you can and can't do. Ask if they have any first time buyer programs. Grants, loans etc. Search their names on Google also. Figure out what monthly payment you can afford, prices of homes and how much money you need. At this point I wouldn't rule any loans or programs in or out. Ask yourself also
0 votes Thank Flag Link Mon Oct 31, 2011

With a proven history of responsible credit use (your 800 credit scores) you have may have options for a conventional loan with as little as 5% down. I suggest you contact a good LOCAL lender for advice. If necessary contact more than one to shop for the best rates and terms. Best of luck to you and Mom.
0 votes Thank Flag Link Mon Oct 31, 2011
Hello RC, Like Robert said providing you qualify, your can put 5% down for a conventional loan BUT you will have to pay private mortgage insurance (PMI) for putting down less than 20%. So what are you tying to accomplish?
0 votes Thank Flag Link Sat Oct 29, 2011
I have a great loan officer I work with for loans in Montgomery and Frederick counties. Her name is Kim Butler and her website is She has several programs with great interest rates. I can help you and your Mom find the perfect home also. Right now is a great time to buy with low interest rates and a large inventory of homes. Feel free to email or call me anytime.

Tammy Durbin, A-REO, e-PRO, GRI, SFR, SSC
Over 20 years experience
cell 240-405-3118
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0 votes Thank Flag Link Sat Oct 29, 2011
Conventional loan with 5% down is generally better if you can qualify. Conventional loans have tighter debt-to-income ratios, so some borrowers even with the best credit scores go FHA if they need to qualify for more than conventional will allow. FHA also has slightly lower 30 year fixed rates, but it had up front mortgage insurance and higher monthly mortgage insurance than conventional.
0 votes Thank Flag Link Sat Oct 29, 2011
I work in Montgomery County and can refer you to some excellent lenders. Real estate agents are not allowed to discuss specific loan programs but there are many options currently available to buyers with your excellent credit. I would be glad to speak with you. Susan Kelly
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0 votes Thank Flag Link Sat Oct 29, 2011
You can get conventional loan.You may talk to a mortgage banker to find the best deal. Thank you.
0 votes Thank Flag Link Sat Oct 29, 2011
Dear RC,
Congratulations on having such a fantastic credit score. You can write your own ticket with numbers like that. If you don't want FHA, your option then is a conventional loan. I'm happy to help you finding your mom the perfect home, and with contacts to explore the financing. I work in the entire DC Metro to Balto areas. I'm honored to be ranked 5 stars by prior clients, and would be absolutely delighted at the opportunity to work with you. Please don't hesitate to contact me directly with any further questions.
Ariana Loucas
0 votes Thank Flag Link Sat Oct 29, 2011
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