Financing in Gilbert>Question Details

Young_invest…, Home Buyer in Towne Meadows Patio...

690 Credit Follow-On Questions Gilbert, AZ on Financing 2nd Home. 1. I have zero debt. 2. This own will be my own with no co-signers. 3. I would like

Asked by Young_investor, Towne Meadows Patio Homes, Gilbert, AZ Sun Oct 9, 2011

... to be approved for up to a $95K mortgage, so I can shop for homes up to the $115K range ( i can come up with the extra g's for 20%). 4. Rental income was claimed on 2010 income tax and will be on 2011 as well. Hope this brings some clarity. Once everyone has the clarity, I need to find another mortgage company to shop and compare. I'm a proven buyer, understand the agony of buying a short-sale, have the patience, all wrapped up into a 24 year old. Good parents, good dna :).

I would like to get another FHA loan, as I will live in this home, but my loan will be predicated on a 20% down payment from my parents, so here is my question. For underwriting guidelines, how long must the funds sit in my account to be considered non-gift? If it is only 2 months, I can wait and get the money in my account now. This will help me decide if I need to wait, but I am not sure if a conventional loan is a problem anyway, with 20% down?

Lindsey

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6
All the previous answers are all correct. You would be best served with a conventional loan to avoid mortgage insurance. To answer your specific question - if you are getting 20% gift funds you don't need them to sit in your account for any period of time. So you shouldn't need to wait. Is there some reason you were thinking you needed to go FHA vs. conventional that you didn't state above?

Let me know if I can help futher,
Brian Cardenas
480.233.7897
0 votes Thank Flag Link Thu Oct 13, 2011
Lindsey

I'm not sure another FHA is possible or the best product for you if you are planning to put 20% down. With 20% down you can get a good quality conventional loan at very competitive interest rates and avoid the costs of mortgage insurance etc.

Good lenders exist that can and will evaluate your total situation and collectively structure your next purchase in the best possible way for you.

Don't be afraid to ask for help, we can recommend great lenders that are very experienced and have the programs you need.
Web Reference: http://www.McVinua.com
0 votes Thank Flag Link Sun Oct 9, 2011
With 20% down, why pay monthly and upfront mortgage insurance. Some lenders are starting to do 80/10/10 mortgages again (at least here in Boise, Idaho at the regional banks).

Good luck!
0 votes Thank Flag Link Sun Oct 9, 2011
If you can put the 20% downpayment on a conventional loan that would be perfect! YOu would avoid PMI which is pretty expensive.
On a conventional the full 20% can be a gift as long as it's not an investment property. Anything less than the 20% downpayment you would have to contribute 5% of your Own funds.
Feel free to contact me 520-440-8230.
0 votes Thank Flag Link Sun Oct 9, 2011
In addition to what already has been pointed out with the gift and being able to use it for FHA or conventional financing....

You can only have more than 1 FHA loan in certain situations - relocation, vacating a jointly owned property (i.e. divorce), being a co-signer on someone else's FHA mortgage, or an increase in family size & the old home no longer meets your needs & you have at least 25% equity in it. You haven't indicated any of those for you, so you would not be able to get another FHA loan in your current situation. I am not sure what the appeal would be anyway since you have a 20% down payment, and with FHA financing there is still mortgage insurance with a 20% down payment.
0 votes Thank Flag Link Sun Oct 9, 2011
Lindsey,

A gift from your parents is ok for your down payment on either a FHA or a conventional loan, so that is not a problem. I would recommend a conventional so that you can avoid mortgage insurance. Even with 20% down, you would still have MI on a FHA loan.

Based on everything else you've said, any lender would love the opportunity to assist you with alone (including me!).

Feel free to call me to discuss the process or to answer questions.

Best regards,
Todd

Todd Bookspan, MBA
Certified Mortgage Planner
602-522-9494
0 votes Thank Flag Link Sun Oct 9, 2011
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