Financing in Haymarket>Question Details

Brian, Both Buyer and Seller in Midlothian, VA

Relocating to NOVA, what is the lowest money down loans that are available. Our credit is excellent. Not 1st time buyers. 10%, 5% 0%?

Asked by Brian, Midlothian, VA Sat Jan 29, 2011

Moving from Richmond and selling our current home that we have lived in for 5 years and will definately lose money selling this home because of the market crash. We have close to 800 credit scores. But at this point we could only get 3-5% together for a down payment. We may be able to sell this home for 200,000 but we can afford 350,000 to 400,000 for our new home. Can anyone tell us if their are loans out there that could work with our situation?

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You may qualify for 100% USDA Financing depending on where you are buying in Haymarket as much of it is in a USDA eligible area.

Here are some highlights of the USDA No Money Down program:

Finance full purchase price plus closing costs up to 103.5% of the appraised value with or without seller concessions
No cap on seller concessions, if seller is not paying closing costs, they can be rolled into the loan amount up to 103.5% of appraised value, not sales price. Great on foreclosures.
One lien, no down payment assistance required
No post-closing reserve requirements
Not limited to first time home buyers
Finance needed property improvements into loan amount up to 103.5% of “After Repaired Value” (case by case, contact me for details)
NO MORTGAGE INSURANCE: That means lower payments than FHA
Full doc only, must have stable work history (2+ years)
Self-Employed borrowers okay with 24 month average income
620 minimum credit score
No open collections, charge offs, judgments or tax liens
No pre-pay penalty
30 year fixed rates
Primary residence only
Available for SFR’s, condos & town-homes only, No mobile homes or multi-family properties

To verify if a property is in an eligible area go to the following link:
http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do

If you would like more details on how to qualify for this loan please feel free to contact me at your convenience.

Elliott R. Oliva
Mortgage Banker
Envoy Mortgage, LTD.
202.681.1636 direct
eoliva@envoymtg.com
0 votes Thank Flag Link Tue Feb 1, 2011
Hello Brian

Along with the other programs mentioned, we offer VHDA and conventional financing with 3% down. Give me a call if you would like me to walk you through these and other programs.
0 votes Thank Flag Link Tue Feb 1, 2011
Wells Fargo has a program that allows 2% down payment. It is an inhouse Wells program so you have to contact their loan officer. I am Realtor, I know few of my clients have looked into the program but there is a income cap that they did not meet.

If interested email me I can give you the loan officer I work with.

Good Luck
Ritu Desai
Associate Broker
Samson Properties
703-625-4949
Info@eNOVAHomes.com
Web Reference: http://www.eNOVAhomes.com
0 votes Thank Flag Link Sun Jan 30, 2011
There are actually plenty of options available for your family. You can either go FHA with only putting 3.5% down and if you use some lenders I know we can also get them done with 0 points on the front and back end. Also there is a conventional loan that saves your family on paying mortgage insurance where you only need to put 5% down. There are some other options as well. Please feel free to call me directly anytime. Mario Mitchell 703-987-5313
Web Reference: http://buymitchellhomes.com
0 votes Thank Flag Link Sat Jan 29, 2011
Brian,
You have some excellent answers here. To clarify a few things. FHA MI drops off @78% not 80%. And conventional MI can ben done three different ways. It can be all upfront. It can be monthly or split. Anything upfront is there unless you refinance the loan. The monthly can go away once you hit 20% equity BUT it's not always easy to prove to the lender when you think it has hit 20%equity. Since the loan gets sold so often don't count on it being easy since there is no way to know for sure who will buy the loan. Hope this helps let me know if you need more. Thanls
0 votes Thank Flag Link Sat Jan 29, 2011
Brian,
Yes FHA is a great option, however; there are some new programs out there that you could possibly qualify for. This program is specific to an address and is qualified by your income. Most properties in this area of Greater Piedmont qualify for this program. If you qualify for this loan that you can get a 100% financing loan with NO Mortgage Insurance. I have had many clients us this program and the lender I use is also qualified to offer this program. The funds do go away so when you purchase will also be important. If you have any further question or would like more information, please do not hesitate to call or email me. Our website also has information regarding this program. Good luck!
Donna Osborne, ABR, CDPE
Certified Foreclosure Prevention Specialist
Re/Max Olympic
The Power Hosue Group
703-906-5672
info@remaxpowerhouse.com
http://www.remaxpowerhouse.com
0 votes Thank Flag Link Sat Jan 29, 2011
Your in good shape then. Go FHA with 3.5% down. I would shop around for the best terms, at least 3 lenders. Use your bank anyone a friend or family may suggest and I am going to give youa good one. Gary Nester with Prosperity Mortgage. He knows his stuff and he is a great guy. Where in NOVA are you planning to move?

Glenn Stromberg, 703-987-8053, glenn.stromberg@LNF.com
0 votes Thank Flag Link Sat Jan 29, 2011
Hi Brian,

I think the answers below pretty much cover the viable alternatives for you (VA - 0% down, FHA - 3.5% down, and some lenders will do a conventional loan with a 5% down payment). A key piece for you will be to understand how Mortgage Insurance (MI) works. Here is a key difference. In an FHA loan, you'll pay MI as part of your monthly payment in addition to an upfront component of MI. The monthly component will go away after 10 years, or when you go show the lender that you have 20 or more percent equity in the home. In a conventional loan, the MI is a bit cheaper, but the MI never goes away, unless you refinance.

Knowing that your available cash is low, I can share with you a couple of different tactics I've used to minimize your cash out of pocket, and to potentially lower your interest below market rates.

If you would like to talk further, please feel free to email or call me. No obligations. If I don't hear from you, I wish you the best of luck in your search.

Regards,
Andy Krumholz, ABR, GRI, CDPE
Keller Williams Realty
703-599-4755 - cell
ajkrumholz@yahoo.com
0 votes Thank Flag Link Sat Jan 29, 2011
USDA loans are 100% but are mainly in rural areas. There are a few exceptions though. Veteran loans are 100% if either of you have military benefits. Otherwise FHA is the best option @ 3.5 %. But there is in most markets now conventional loans with MI @ 95% that are pricing out MUCH better than FHA. Call or email me for more details before you speak to a realtor so we know exactly what you can and can't do. Thanks and hope this helps.
0 votes Thank Flag Link Sat Jan 29, 2011
USDA loans are 100% but are mainly in rural areas. There are a few exceptions though. Veteran loans are 100% if either of you have military benefits. Otherwise FHA is the best option @ 3.5 %. But there is in most markets now conventional loans with MI @ 95% that are pricing out MUCH better than FHA. Call or email me for more details before you speak to a realtor so we know exactly what you can and can't do. Thanks and hope this helps.
0 votes Thank Flag Link Sat Jan 29, 2011
from what I see from here, you would be qualify for FHA which requires only 3.5% down payment. Currently I do give help for closing cost using partial of my commission. So please let me know when you visit this area for house hunting.
0 votes Thank Flag Link Sat Jan 29, 2011
It depends on the loan, FHA requires 3.5%. I would consult w/a lender and if you need a lender to talk to I could give you several names past clients have used.
0 votes Thank Flag Link Sat Jan 29, 2011
USDA loans are available for 0 money down, I just closed a USDA loan last week and it went very well, the buyer got back all the money she paid for the home inspection, appraisal, credit rept., etc... at closing which was a true no money down program!! Not sure where you are moving to, I serve the Winchester, Va and West Va area into Frederick/Clarke County (Berryville) where prices are alot more affordable than Fairfax/Loudoun County. Having been a loan officer, I would be happy to help you find a great deal with both your new home and loan! Visit my website for more information at http://www.michelegibson.com
0 votes Thank Flag Link Sat Jan 29, 2011
An FHA loan only requires a 3.5% down payment. I'd be happy to help with your search in Nothern Virginia!
Web Reference: http://www.jimmccowan.com
0 votes Thank Flag Link Sat Jan 29, 2011
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