Home Buying in Herndon>Question Details

willzmy, Home Buyer in Herndon, VA

First Time Home Buyer w/ 800 FICO score & 140K Annual salary but only 5% downpayment

Asked by willzmy, Herndon, VA Wed Mar 20, 2013

Hello..I am first time home buyer with 800 FICO score, 140K salary. I am looking for a Townhouse in Fairfax, Herndon area for around 450,000. I can only make 5% downpayment. Can you please suggest what would be the best options for Loan. From my research it seems 5% conventional would work out better than FHA. Please advice

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Trevor Curran’s answer
Good afternoon willzmy,

First steps:

Meet with a Local Mortgage Banker to get prequalified for mortgage financing. The Mortgage Banker will review all facets of your loan request to answer your questions with regards to the types of loans and maximum loan amounts you could qualify for.

Line up a Home Inspector. A good home inspector will scare the heck out of you: that's what you pay him for! But you'll concentrate on the fundamentals of the property: roof free of leaks, plumbing, heating and electrical up to code and in good working order. Again, when you make an offer and you have your Home Inspector ready to go, your offer will be considered with much more interest by a Seller because you truly have your "ducks in a row" and your preparation demonstrates your serious attitude about conducting the purchase transaction in a timely manner.

Find an experienced Local Realtor who works in your desired shopping area. A serious pro Realtor will refuse to show you homes until you are Prequalified for mortgage financing. Don't take offense! That Realtor doesn't want you to be disappointed and wants you to have a smooth experience as you shop for your new home.

Put together your Team of real estate professionals and shop 'til you drop!

Trevor Curran
NMLS #40140

*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes Thank Flag Link Wed May 8, 2013
Good Evening.

Shristhi and I wanted to follow up with you - did you find your first home? Are you working with a Lender? Do you have a realtor? Do you have any real estate questions?

We're here to help - either way?

Best,

Chris

Chris & Shris Dudley
Long & Foster, Realtors
Licensed in DC, MD & VA
Office #: (703) 556-8600
Office Address: 8227 Old Courthouse Road, Tysons Corner, VA 22182
---
Chris Cell: (202) 297-3047
Email: chrisdudley@longandfoster.com
Shris Cell: (301) 655-1521
Email: shristhi.dudley@longandfoster.com
-- http://www.dudleyrealtor.com
0 votes Thank Flag Link Tue May 7, 2013
It's a no brainer these days. Conventional is the way to go now that FHA has increased their premiums to their current levels. I have 27 years in the mortgage busuness and have funded over $1Billion in loans. More importantly, I handle every loan personally throughout the entire process and am always available to answer all the questions you will have as a first ttime buyer. Feel free to call (703-919-9040) or email me (ksiegfried@monarchbank.com) to get pre-approved and get started.
0 votes Thank Flag Link Thu Mar 21, 2013
Dear FTHB:

I will start with your second question in first - I really think that being the FTHB your Realtor should focus on finding you something which keeps you under the Jumbo limit of $417K (as interest rate may also differ if your loan amount is higher than $417,000), even with a purchase price of $450K puts you higher on the loan amount. Of course, you can have a gift from a family member and use it for your down payment and/or closing cost as long as your brother (or person giving out gift) has sufficient funds in their account(s) to show that they can afford to give away gift money. And YES!! I will definitely go for conventional financing over FHA due to FHA upfront mortgage insurance fee and higher PMI. However, even in conv. loan with 5% down you will still face PMI but it's slightly lower. You can also get rid of the PMI completely by paying an upfront fee for the life of the loan, that brings your monthly payments to a lower amount - what else can be better!! RIGTH??
We have helped many first time home buyers and would love to help you too!! My initial meeting with FTHB explains the process which help my First Time Home Buyers make the right decision and have the correct approach with finding their first home.
I am doing a "First Time Home Buyer Seminar" next month - let me know if you'd like to register (or if you want to make the move earlier, I can surely set up a one on one meeting with you).
Last but not least, It's absolutely a great market to buy your first home with great interest rates and home prices on a steady incline.

Hope this information is helpful to you!!

Sincerely,

Faiza Alvi - Realtor®
Prince William Realty, Inc.
703-389-7973 (Direct)
703-580-9995 (Fax)
http://www.house2homeva.com
MILLION DOLLAR CLUB - PWAR 2011

I believe:
Real Estate is about building relationships
& serving clients with honesty, integrity & passion.
0 votes Thank Flag Link Thu Mar 21, 2013
Gifts can be a bit tricky with timing and a clear trail important. It would be best to discuss with a lender so they could properly advise you. The sooner the better to have all your finances in order. I work with great people if you'd like their names.

Please don't hesitate to contact me and I'll send you the list. Thank you.

Best regards, Sherry

703.407.5778
0 votes Thank Flag Link Wed Mar 20, 2013
Thanks for your responses... I have a follow up question..

Considering I would go for Conventional 5% down payment loan... and I dont want to go beyond Jumbo loan limit of $417,000... Now if a house costs $500,000 and I have my own funds for 5% downpayment.. Can I take the remainder of the money required for downpayment as gift from my brother.
0 votes Thank Flag Link Wed Mar 20, 2013
Yes, as long as you have 5% of your own funds, the rest can come from a gift.
Flag Thu Mar 21, 2013
There are many, many financing options available. I have a couple lenders on my team who could educate you on these options. The first step to any real estate transaction is to get the financing in order. Call me at 703-307-3449 and we discuss all the details an I can have one (or more) of my lenders contact you about financing. You can also email me at johnginty@kw.com. I look forward to speaking with you and helping you find a great new home.

Sincerely,
John Ginty
Keller Williams Capital Properties
0 votes Thank Flag Link Wed Mar 20, 2013
Dear First Time Buyer,

Congratulations on your purchase to be. That's great! Most likely the conventional financing with 5% down is the way to go. I can give you the names of several trusted lenders, all are very knowledgeable, friendly, easy to work with and will get you to closing on time. I'm happy to send you the names.

I would be glad to help you as well if you're in need of a real estate professional. My office is in Fairfax, I live in Reston and have sold several properties in Herndon. I have helped many first time buyers find a new home and will be glad to work for you to find just the right place. Call or email anytime for questions or additional information.

Please check out my website, http://www.RestonViennaHomes.com for easy and accurate property searching. Thank you.

All the best, Sherry

Sher@LNF.com
703.407.5778
0 votes Thank Flag Link Wed Mar 20, 2013
Hello,

I am happy to help in anyway. I am a Top Lender in the Reston / Herndon area.

In fact, my office is in Reston. My team is in the Top 1% Nationwide.

I can do 5% down with (3) different structures. Most lenders can only offer 1-2 types.

You can call me at 703-568-3749 at anytime.

My site is http://www.DCmortgageSource.com
0 votes Thank Flag Link Wed Mar 20, 2013
I agree. FHA's mortgage insurance premiums continue to go up every year. Conventional should be your best mortgage option. See link to monthly and upfront premiums.
0 votes Thank Flag Link Wed Mar 20, 2013
I would agree with you on the 5% conventional. It should be less monthly w/out the FHA mortgage premium.

A good, competent lender can help you best.

Will Gaines
First Porfolio Mortgage
703-401-0241
wgaines@firstphc.com

If I can help with anything at all during your search, I'd consider it a privilege. I lived in Herndon for 7 years, my office is in Reston, VA.

All my best,

Matt Elliott
Keller Williams Realty
703-627-2167
MattE@kw.com
0 votes Thank Flag Link Wed Mar 20, 2013
Matt is an amazing Realtor if you need advice as well. Highly recommend him!
Flag Wed Mar 20, 2013
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