Home Buying in Massachusetts>Question Details

Katie, Home Buyer in Somerville, MA

First-time home buyer in Cambridge/Somerville area seeking advice on buying a condo

Asked by Katie, Somerville, MA Mon Jun 8, 2009

I’m on the fence about buying a condo right now. Here’s the situation: I would be a first-time home buyer with excellent credit (770 ) & NO debt; however I have limited money saved up. I’m looking for a condo in the Cambridge/Somerville area in the $250k range (I know it won’t get me that much, but I love the area) and would make a 3-5% down payment. What I’m trying to determine is the following:

1) Based on the limited down payment of 3-5%, am I only eligible for a MassHousing loan?

2) To what extent does the amount of down payment affect your mortgage rate and PMI? I ask because by around this time next year I’ll be in the position to put as much as 10% down. Based on what I read, it sounds like mortgage rates are on their way up and I’m worried that by this time next year they’ll be much higher.

3) What are my options for closing cost assistance? I am not eligible for Cambridge/Somerville assistance. I don’t think I’ll have much to put toward closing costs.

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Answers

3
A mortgage broker or lender will be able to give you the most direct answers regarding financing options and you should definitely speak with someone before moving forward. It will make your purchase experience much easier :)


#3 has an easy answer, ask the seller to cover your closing costs (simply write it into the offer).
0 votes Thank Flag Link Mon Jun 8, 2009
Condos are tricky to purchase. Some sellers in this market are willing to finance a second to allow you to purchase their property.

PMI is for buyers purchasing with less than 20% down. Speak to your mortgage professional to see what loans you qualify for - there are many, many options.

Closing cost assistance can come from the Seller. Ask

Good luck!
0 votes Thank Flag Link Mon Jun 8, 2009
katie,
I can post the answers to your Q's here but it will take a bit to type out.

Any chance you want to simply give us a call?
617-848-5407 extension 704

Might be easier to go over your options via phone since chances are you will have more questions once I answer the above one's.

And by the way there are plenty of options on the market under $250K

Here is a link that shows you all your opp's in Cambridge:
http://www.territoryre.com/idx/search.html?search_string=&am…

And all your opp's in Somerville:
http://www.territoryre.com/idx/search.html?search_string=&am…

Looks like there are even opportunities to buy a Single Family in your price range!

Plus you will see our guaranteed discounts off each property (extra money in your pocket ... which seems might be a huge advantage for you).
0 votes Thank Flag Link Mon Jun 8, 2009
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