He needs to explore all of his options. One of them MAY be, if he is a First Time Home Buyer, a program that BBVA Compass offers that, to be honest, most Realtors don't even know about. If your son has credit scores over 680, the program is 5% Down Payment, NO PMI (mortgage insurance), a maximum loan amount of $417,000, and even though we collect an extra 3 months of taxes and insurance to guard against an escrow shortgage at the end of the year, the first payment isn't due for 4 months after the loan closes. In other words, if he closes on the property in April, his first payment isn't due until September 1. This gives him a lot of time to not have a rent or mortgage payment.
On top of all the advantages I just listed, just like an FHA loan, all of the funds for closing, INCLUDING the DOWN PAYMENT can be gifted by a relative. The rate is not that much higher than most 30 yr. fixed rates today, but, yes, it is a little higher, but the monthly payment is a LOT less than what he would be paying if he did an FHA loan. Trust me, I used to love the FHA loan, even bought my first house on one. But it is not the great loan today that it used to be. After analyzing the borrower's situation, I always present it, however, I haven't done one in over a year. There are better options in most cases.
Feel free to contact me at 972-705-2806 if you would like further information. And for all of you Realtors reading this, please give your first time buyers a different alternative than the FHA loan. I think once they compare the 2 programs, they will thank you for knowing about our loan. Ask your current lender if they will allow the 5% down payment to be gifted and then not make a mortgage payment for 4 months. I don't think they will be able to match it.
Interest rates are not one size fits all. There are so many factors that go into arriving at a rate that to quote one with no information at all would be like diagnosing someone with cancer by looking at their picture.
I suggest you have him take his taxes and other financials to a qualified loan originator in your area and see what is available for his specific situation.
Some questions here on Trulia can and should be answered, others cannot and should not.
1. The market that day
2. Credit score
3. Down payment
4. Level of closing costs(higher rate = lower fees and vice versa)
The answers below are within the current range.
(214) 763-4629 cell/text/nights/weekends(Really!!)
Lending all across the entire Great State of Texas!!
Search Dallas area MLS for FREE. No registration => http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
The rate average from 3-3.75% with 5% down.
I am a lakewood resident and I would be happy to help you and your son find a home.
You can visit my website at http://www.findyourtexashome.com/lakewood for homes in the area.
Most lenders in town can loan in any other part of town.
Prices are starting to go back up again and interest rates are still great even though they've gone up a bit.....now is a great time to buy.
"Please do not contact lenders that only offer "internet business", such as Lending Tree or Trulia."
Neither Lending Tree nor Trulia are lenders. Lending Tree merely puts you in contact with lenders who have paid the required amount to be listed. Lending Tree is a lead generation site for loan originators. Trulia merely lists loan officers and Realtors; they do not lend.
I find it ironic and hypocritical that Chris would call out "internet" companies and Trulia specifically as where not to find a lender when he himself has a profile listed, is answering questions here and has no problem posting his contact information along with his "advice" to contact a Realtor.
My advice would be to not contact a Realtor you find on Trulia if they are hypocrites.
By the way, I just sold another home in the Lakewood area over the weekend.
Prudential Texas Properties
Dallas homes for sale Dallas Tx - website updated daily
Contact my office today where I can show your son many amazing homes work with his family specifications.
Lynn911 Dallas Realtor & Consultant
Multimillion Dollar Sales Producer
Follow me on Facebook