Financing in 22203>Question Details

Matt, Home Buyer in Arlington, VA

I'm looking for advice on getting financing for a home in the Arlington area in the neighborhood of

Asked by Matt, Arlington, VA Sun Jan 6, 2008

$575-600K
later this year. I will be starting a job that will have my annual income around $225K, but I will probably only have around $25-30K to put down. My credit is excellent, scores in the 760-770 range. Would I be able to qualify without at least 5% down, and if so, what kind of rates would I be looking at, and should I look for a piggyback on top of a conforming mortgage rather than a jumbo loan?

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Hello Matt, I hope you are doing well. I wanted to add to what the others have posted already. Depending on what counties you are looking to buy in, you may qualify for a Conventional or FHA loan without having to seek a piggy-back or Jumbo loan.

For example, if you are buying a Single Family Residence in Arlington County the FHA/Fannie Mae loan limit is $729,750. That means you may qualify for an FHA loan with just 3.5% down or a Conventional loan with 5% down, so long as the loan amount does not exceed $729,750. So if you were utilizing an FHA loan to purchase a $600,000 home your down payment could be as low as $21,000. Of course each loan program has it's specific requirements so always consult with an experienced lender that can outline both loan programs for you in plain English.

In the meantime, you can verify the loan limits per county in Virginia at this link:
https://entp.hud.gov/idapp/html/hicostlook.cfm

If you would like more guidance please feel to contact me at your convenience. Thank you and good luck!
0 votes Thank Flag Link Sun Dec 12, 2010
Yes, it appears that 100% financing has really, truly, finally disappeared. However, as you may have heard, the stimulus package passed by Congress does include language that will allow a redefinition of "jumbo." In other words, Fannie Mae and Freddie Mac will now be able to buy loans up to some new number (125% of the area's average home price) - in the DC area, that will probably mean the new upper limit will be somewhere in the mid to high 500s. So, if you can wait a little bit for this to get sorted out, you may not have to worry about a jumbo loan. If not, with excellent credit and your income, you'd probably be in the high 5s in terms of an interest rate.
0 votes Thank Flag Link Thu Feb 14, 2008
yesterday all my troubles seemed so far away......

The loan you got a year ago is no longer available. I don't know if you have heard but their has been a tightening of lending guidelines that started in August of last year. So what you were able to get a year ago really doesn't matter.

Call her and find out the information that has been posted is accurate.
0 votes Thank Flag Link Tue Feb 12, 2008
Matt, very few lenders are offering 95% financing on loans exceeding $417,000, fewer still at competitive rates and terms. I am a direct lender in Norther Virginia and am currently able to offer 95% financing at extremely competitive rates. I have worked in the Norther Virginia mortgage market for the last 20 years. Please feel free to contact me to obtain a good faith estimate. syow@ftloan.com Sam
0 votes Thank Flag Link Thu Feb 7, 2008
cindy,

If your clients are paying 3-4% of the sales price on a $600,000 purchase price your clients are over paying for closing costs 3% is $18,000.
0 votes Thank Flag Link Sun Jan 6, 2008
The loan programs have vaired much over the past 6 months and I am sure will change more. Jumbo loans continue to be a challange. Few lenders (if any) have 95/5 programs on Jumbo loans still available. If you are a member of the military - I would try USAA or Navy Federal Credit Union as they tend to have very competitive products. You can also check my preferred lenders on my website: http://www.JamesFindsHomes.com
0 votes Thank Flag Link Sun Jan 6, 2008
Hi Matt:

I am not a lender and can only give you info on what the lender I work with provides me. You may qualify but you may have to pay PMI. Closing costs will run you about 3/4% of the sale price of the house. You can ask for seller help.
For specific information on the best loan for you, the best idea is to talk to a lender.
Web Reference: http://www.northropteam.com
0 votes Thank Flag Link Sun Jan 6, 2008
You probably won't be able to get piggy back financing up to 95%. Most if not all of the major lenders have scalled back the Max CLTV to 89.99%.

Since you will need jumbo financing your rate will be slightly higher than conforming but should not be outrageous. Mid 6's if I was to guess. every state is a little different.
0 votes Thank Flag Link Sun Jan 6, 2008
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