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Melissa6705, Home Buyer in Dallas, TX

I am looking for a home and have found a few that I like. I don't have a down payment but think I qualify for the DPAP. What do you suggest my?

Asked by Melissa6705, Dallas, TX Wed Nov 11, 2009

next I am looking for a home and have found a few that I like. I don't have a down payment but think I qualify for the DPAP. What do you suggest my next

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Melissa,

This may be personal information but if I may ask, why dont you have any money for a downpayment.

On a FHA mortgage a downpayment is only 3.5% down. So thats $3,500 for every $100,000 in sales price.

Do you not have a savings? Reason I ask is because if you do not have a cushion, I do not suggest buying a home at all. Years back the 100% loans are what caused the issues we face with today.

If something happens and you are out of a job, you need to be able to carry your mortgage until you can find something otherwise in 30days you go into default.

Losing a home is only the start, if foreclosed on your credit tanks and buying another home is years away.


Sean Dawes
1 vote Thank Flag Link Wed Nov 11, 2009
Finding a source for the assistance is pretty difficult right now. The state's program ran out of money a few weeks ago, but they will get more. Also, the extension of the tax credit until April will relieve the pressure to get something done right away. No, you shouldn't wait until April (so many people will be lined up then that it will be nigh impossible).

Since there are requirements to meet in order to qualify you should discuss with a knowledgeable Realtor or a loan officer about what you need. But, please let me gently echo what Sean brought up: if you don't have reserves, it may not be wise to commit to a monthly mortgage payment until you build them up.

So, DPAP agencies will replenish their supply of money over the next few months. At the same you should be building your cash reserves and working on your credit. If your credit scores are less than 640, you'll need to improve them. The middle score of all 3 bureaus needs to be at a minimum 620 and preferably above 640. For maximum choices, you need 680. Get with a loan officer and find out what your scores are so you can work on them, if necessary. Save up money for down payment, closing costs, cash reserves and for buying the things you'll want to put into your new home.

For down payment 3-1/2% down minimum is required, 5% is better. Don't rely on the tax credit to get your money. You'll also need about 2-4% for closing costs and prepaids when you close. Having 2-3 months of reserves (that's 2 to 3 months worth of monthly payments) in addition to all this will make you look sterling, once your scores are comfortably above the minimums.
Web Reference: http://www.Mortgages-TX.com
0 votes Thank Flag Link Sun Nov 15, 2009
Melissa,

I believe you would be best served by starting out with a great mortgage broker to examine what programs you are eligible to use. This way you can do a targeted search for a new home after you know what you are eligible to buy. The home search will be quicker and possibly less stressful for you. I would be happy to recommend a great mortgage broker to work with you on this process. Just give me a call or send me an email.
0 votes Thank Flag Link Thu Nov 12, 2009
The first thing you should do is talk to a lender that is qualified and works with a variety of programs of which you may be eligible. We may refer you to an expert. Alexander Chandler Realty also has representatives that work in all areas of Fort Worth, Dallas and ponits in between. Check out our awesome website and our Trulia profile for credentials. We hope to be able to help.
Sincerely,
Alexander Chandler
0 votes Thank Flag Link Thu Nov 12, 2009
If you are not working with a Realtor give me a call tomorrow at 214-682-0598 and let me know about the property and I will find out what DPA's are available.

RJ
Web Reference: http://www.findapadfast.com
0 votes Thank Flag Link Wed Nov 11, 2009
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