Home Buying in Dallas>Question Details

Kyle, Home Owner in Dallas, TX

Conventional or FHA, or other for a 1st time buyer? What 2 do....?

Asked by Kyle, Dallas, TX Wed Feb 19, 2014

Son will be buying soon and without 20% down, and being a first time buyer, are there any programs that can help him get into a home/condo under $125. Score is in the low 700's

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19
The cost of the FHA loan can be higher where the mortgage insurance funding fees are concerned. Just compare both Good Faith Estimates, side by side, for both a Conv and FHA loan.
0 votes Thank Flag Link Mon Feb 24, 2014
I'm sure that if you have read all of the responses, you have seen that there are numerous choices, so I will add to the collection.
As for a condo loan, if the borrower makes less than $55,000 annually, even if the condo is non-warrantable but is 30% owner-occupied, we offer a program that is 3% down, NO mortgage insurance, and all the funds, including down payment can be gifted by a relative.

If the property is a single-family residence, we offer a First Time Home Buyer program that is 5% down, NO mortgage insurance, all the funds including down payment can be gifted by a relative, and we delay the first payment for an additional 3 months after closing, i.e. if you close in March, your first mortgage payment would not be due until August 1. There is no additional interest charged, however, we do collect 3 extra months of taxes/insurance at closing to insure there is no large escrow shortage next year. I don't believe there is another lender that offers a program similar to this.

My advice, for what it's worth, if the credit score is 700, income can be verified, and funds are available, there is no reason whatsoever to consider doing an FHA loan when there are other programs available that will save you money every single month.

Feel free to email or call me if you have more questions
bill.merritt@bbvacompass.com 972-705-2806
And, I'm not a snake oil salesman, just telling you what is available.
0 votes Thank Flag Link Thu Feb 20, 2014
Sometimes FHA is better for first time home buyers, It cost less to move in , you can ask seller to pay some closing cost,

Good Luck

Linda
0 votes Thank Flag Link Thu Feb 20, 2014
Hi Kyle,
There are a variety of programs that may meet your needs. You need to speak to an experienced lender that will lay out all the options as well as their pros and cons. My main office is in Gladewater, (although I personally am not) so we are experienced in the area.

I'm available to help you at your convenience if you wish.

I can do a full underwriting approval ahead of time if need be and I also offer credit score improvement programs for free while we work on your mortgage.

If you like my answer above, consider clicking on a “Thumbs Up” or “Best Answer”

Regards,

Robert L. Hanson
Gladewater National Bank
First Time Homebuyer Specialist

Direct: 240-752-7549 Cell: 301-651-7822
Email: robertlh66@verizon.net
NMLS# 695929

Rate quote or live chat with me at the link below:

http://www.loansfromrob.com/quote/
0 votes Thank Flag Link Thu Feb 20, 2014
Kyle,

Here in Longview there are 2 programs for first time home buyers - one from a local bank and one from a credit union....both offer 100% loans, and his credit score definitely puts him in the range of eligibility. That may not help if he's looking to buy in Dallas, but I would imagine there are similar programs there. I'd be happy to help more personally if you or he need it!

Nancy Chapmon Peralta, realtor
Suzanne Cook & Co
903.241.6109
0 votes Thank Flag Link Thu Feb 20, 2014
Hi Kyle, You should budget for a 3.5% or 5% down. As they are the minimums currently for FHA and Conventional financing. Keep in mind military vets can buy with no money down. I would contact a lender you trust who's first listens to your needs and then determines a suitable strategy to help your son accomplish his goals. It's important for a lender to know how long he plans to live in the property, his budget, his expectations in regards to his career and future income, he may even be eligible for down payment assistance, so there are many things to consider finding a reputable lender is certainly one of them.
0 votes Thank Flag Link Wed Feb 19, 2014
There really are a lot of options. With his credit I would advise going conventional over FHA due to the costs involved. He will need to come up with 5% down payment but can roll in the rest via seller and lender credits.

Have him call me to discuss. I am also familiar with the different first time buyer and other types of down payment assistance programs that could potentially cover the 5% down payment for him as well.

Hope this helps.

_____________________________________________________
Don Groff | REALTOR® & Mortgage Broker
Austin Real Estate Pros & 360 Lending Group
o 512.669.5599 | m 512.633.4157 | listings@dongroff.com
websites: http://www.AustinListed.com | http://www.360LendingGroup.com
0 votes Thank Flag Link Wed Feb 19, 2014
Don...............We plan on doing our best to find under market address to purchase. Past experience and recent, 12 month observations in our area lead me to believe that we would be successful in finding something to re-do well under market if patient and deliberate in our search. Question: How does a purchase at 30-40% under market change the mortgage options in regards to cash outlay, rates, pmi, etc.
Flag Wed Feb 19, 2014
With those scores, he needs to be looking into conventional 5% down.

Does he have the 5%?

Once pre-approved, I can refer you to a realtor in your area. Lenders know the good ones and bad ones and usually have more than one they can refer you to.



Tom Burris
Mortgage Banker
http://www.dallasloanguy.com/
(214) 763-4629 cell/text/nights/weekends(Really!!)
tburris@servicefirstmtg.com
Lending all across the entire Great State of Texas!!
NMLS# 335055
Search Dallas area MLS for FREE. No registration => http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
.
9yr Veteran navigating Mortgages for wonderful clients.
0 votes Thank Flag Link Wed Feb 19, 2014
I would suggest talking to a lender, they should be able to give your son options and suggest which one is most suitable for his situation. Obviously, he will be the one making the final decision on which loan to go with.

Let me know if you need a name or two lenders.

Susie Kay, Realtor®
GRI, CHMS, SFR
Residential/Commercial/Investment
English-Indonesian-Hokkien
------------------------------------------------------------------
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240
469-371-2899
susie_k@att.net

http://www.dfwdreamhomes.net

Servicing your real estate need is my priority!
0 votes Thank Flag Link Wed Feb 19, 2014
I would suggest talking to a lender, they should be able to give your son options and suggest which one is most suitable for his situation. Obviously, he will be the one making the final decision on which loan to go with.

Let me know if you need a name or two lenders.

Susie Kay, Realtor®
GRI, CHMS, SFR
Residential/Commercial/Investment
English-Indonesian-Hokkien
------------------------------------------------------------------
United Real Estate
III Lincoln Centre, 5430 LBJ Freeway #280
Dallas, TX 78240
469-371-2899
susie_k@att.net

http://www.dfwdreamhomes.net

Servicing your real estate need is my priority!
0 votes Thank Flag Link Wed Feb 19, 2014
Hi Kyle
Conventional financing will pose the lowest APR, but require a bit more down. Consider a single-premium MI product to allow the lowest monthly payment while achieving maximum tax deductibility.
Most companies do not offer this product.
We do an excellent job guiding our buyers no matter how experienced through the process. The transaction is handled 100% in-house and we also service the loan. In other words, we take ownership of the loan and the customer.
Our rates and fees are most competitive, our speed unrivaled, and our customer service second to none!
Feel free to reach out to me with any questions or apply on-line.

Sincerely,

Karl F. Kuhn
Mortgage Sales Manager
NMLS# 169902
Cell: (469) 831-8383
Toll Free fax: (855) 810-6117
Office Line: (972) 569-2357
Craig Ranch – 6401 S. Custer Rd., McKinney
Pre-Qualify Here: kkuhn.fubmortgage.com
“Keeping it Simple & Seamless”
0 votes Thank Flag Link Wed Feb 19, 2014
Hey Kyle,

Either one would be a personal decision on your son. He could put approximately 5% down with a conventional loan or 3.5% down with a FHA loan. There are plenty of programs that could help assist him in his home purchase. There is the Texas State Affordable Housing Corporation which provides 5% down payment assistance as a grant and there are also different city programs (depending on where he wants to live). I will be hosting a First Time Homebuyer's seminar at Service First Mortgage in Richardson on March 8th with lender, Elvira Rodrigues in Richardson. At this seminar, you can get all your questions answered with no pressure. You can contact me through phone or email for more information at 972-468-5565 or atfowler@kw.com.

I hope that answers your question.
0 votes Thank Flag Link Wed Feb 19, 2014
I am going throught the same thing with my son, Kyle. Feel free to call me, as he will need a Realtor. Not all lenders will do Condo loans, as I have come to know. I have some good lenders that will do Condo loans.

Liz Renfro
William Davis Realty
214-924-9676
0 votes Thank Flag Link Wed Feb 19, 2014
Hi Kyle,

I work with many first time buyers and I have a couple of great lender referrals, and would be happy to help your son out when he is ready to buy. Call, text, or email me at any time. I am here to help.


Barbara Wilson
StarCrest Realty
214-564-7579
bwilson228@gmail.com
0 votes Thank Flag Link Wed Feb 19, 2014
If he wants to buy in the City of Dallas and is going to buy pretty quickly....lets say in the next 75 days, he may be able to get help with the down payment.

Give me a call and I can explain the program to you.

His loan officer is probably the best person to advise him on what type of loan. There are some conventional programs with less than 20% down. The thing I don't like about FHA is that the mortgage insurance never goes away now....even when you hit that 20% threshold. Maybe it won't matter.
0 votes Thank Flag Link Wed Feb 19, 2014
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
FHA requires a 3.5% down payment, and conventional requires about 5%. His credit score is great, so no worries there. Conventional is a better way to go if he qualifies. The best place to start is to hire an Exclusive Buyer Agent. EBAs only work with homebuyers and there is never a conflict of interest that will jeopardize your negotiating position. I'm the owner of Dallas' oldest and most successful Exclusive Buyer Agencies and would be happy to help.

I've written a best selling book called Buying a Home: Don't Let Them Make a Monkey Out of You. It'll teach you how to buy a home and get a mortgage without getting ripped off. Follow the link below.

Best of luck!

Alysse Musgrave
214-734-3863
Alysse@HelpUBuyAmerica.com
http://www.helpubuyamerica.com
0 votes Thank Flag Link Wed Feb 19, 2014
The real issue in your question isn't which type of loan would be best. That all depends on which type suits you best. FHA has raised their mortgage insurance (MIP) so high that I only recommend them if a buyer can't qualify for a conventional loan.

Condo's are a different issue. If a condo doesn't meet the guidelines for an "agency" loan, you'll be getting a "portfolio" loan, i.e. 20% down required. That's a bunch of inside-baseball jargon, I know. Condo's can't have too many investors, or single owners with more than a 10% share of the units, or other characteristics that matter to Fannie/Freddie and FHA. And even if it qualifies now, in the future it might end up with too many investors, and fall out of qualification. Then you'd have trouble selling when you are ready.

My suggestion is to find an experienced Buyer's agent, and have him/her refer you an experienced mortgage loan officer. Banks are limited in what they offer, so a mortgage company will serve you better.

Good luck!
Barbara Coker
NMLS#228545
Licensed Mortgage Loan Officer
100% Home Loans All Over Texas!
0 votes Thank Flag Link Wed Feb 19, 2014
Hi Kyle,
Call Dick Dobbs with Homebridge...469-879-5050. Mention my name...
Rosalyn Traylor
0 votes Thank Flag Link Wed Feb 19, 2014
Kyle--

I have a great lender that you or your son can speak with. Drop my name to her.

Jennifer Ott--(D) 214-476-3687 (lender)

Chris Boyington
214-598-0221
chrisb@rmdfw.com
http://www.chrisboyington.com
Home for Heroes Affiliate
US Army Veteran
0 votes Thank Flag Link Wed Feb 19, 2014
Kyle, I would suggest that you select a good buyer's agent that you are comfortable with and allow them to recommend lenders to you. Most agents have one or more lenders they work with and have a relationship with. I think that is your best bet. Please contact me, I will be very happy to work with you.

Bert Bertrand
B-4 Realty
214-282-2360
Flag Wed Feb 19, 2014
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