FHA is the right choice for you. In our current economic conditions its going to be hard to obtain a conventional loan with your current credit score with just 5 percent down. FHA can easily be obtained with a minimum score of 640 possibly as low as 580 with just a 3.5 percent downpayment. Almost all local lenders do FHA loans (which are backed by the federal government) which will get you on your way to home ownership.
FHA is not your only option. Call Larry Alexander at Great Plains Mortgage he's the owner. He can go over all the options with you and he usually beats most of the local banks and lenders on rates and costs. Call him at 402-502-3599 tell him Scott sent you.
Keller Williams Omaha
If you would like to visit our model homes, please stop out to 6016 S 191st Terrace (corner of 192 & Y Street) I have 3 models here you can tour. I have represented Celebrity for over 15 years. http://www.TucsonDLX.com
I would love to help you find the perfet new home to fit your needs.
You have a variety of options but with your credit score, FHA is probably your best choice. If you want a comparison of your options, please contact me. Also, I wouldn't wait because the word is that FHA is raising its monthly mortgage insurance fee next year. This will only make buying more expensive for you. For more details, see my blog at http://omahamortgageonline.com. If you have more questions, contact me at 402-333-5432 or email me at firstname.lastname@example.org.
Dennis W Clark
Freedom Lending, LLC
With a credit score of 690 you can go with a 5% Conventional loan with the mortgage insurance rolled in. You will see a significant difference in your monthly payment and costs verses the FHA financing. However you are capped at 3% if you ask the Seller to pay closing costs, prepaids, escrows, etc. The FHA allows up to 6% but overall you are still ahead with the Conventional.
If you need help in finding a home please feel free to contact me would love to help you.
DEEB Real Estate
I see that a few other agents have already answered your question and there are some very good answers in there, and some very good agents as well. With a 5% down payment, unless you are military or buying in a rural area, you will most likely want to go FHA on your loan but I would recommend to do it sooner than later. The reason why is that the government is considering making PMI a permanent thing if you buy a home with less than 20% down, even if you refinance it at a later date. If you would like to talk with one of my loan officers to find out more about this, please contact me at 402-680-2393 or email me and I'll be glad to put you in touch with them. If you already aren't working with an agent, I would love the opportunity to earn your business as well. Thank you and good luck on your home search!
Trulia Pro Agent
I think you are off to a great start with a high credit score & good down payment! I would be happy to connect you with a few loan officers to interview to help you find the best product to fit your specific needs. The application process should only take a few min to get you started! Feel free to contact me at 402.206.5156 or email@example.com. I'm happy to help!
Best of luck,
Gitt Real Estate
All good information here. I would add that the NIFA HBA loan which only requires $1000 down because it provides closing cost assistance up to 5% of the purchase price could hinder your buying power depending on how tight your numbers are and what home you are interested in, so don't assume right off the bat that a lower down payment is best especially when it is not your only option. It is the best idea to visit with a lender right away, so you know exactly what your position is. Many times home buyers with a qualifying credit score and down payment money are caught off-guard by the debt-to-income factor. I would be happy to help get you started if you aren't already working with someone. Give me a call or email me if you would like to check out some of my references.
Keller Williams Greater Omaha
As always, it's best to talk it over with a lender to get your best options. If you qualify as a first time buyer, then a NIFA loan may be a good option for you. This loan may get you into a home for a $1,000 or less. Talk with Paul Kottich (402) 490-2550 or Amy Hayes (402) 680-1435 at First Mortgage. If you are looking further outside of Omaha in a more rural area, there is a loan called a USDA loan which also has a low down payment feature. I have a different lender for that product.
If you have served in the Military or reserves then you could have eligiblity for a VA loan.
Most lenders do conventional and FHA loans, but some will try to steer you away from these other products because they do not have access to them.
There are a lot of factors regarding a loan, not just credit score and down payment. Talk to a lender and get preapproved before you look at homes.
Please feel free to give me a call if you have questions.
If you would like to walk through the entire buying process so you have a comfort level before you start looking just give me a call and we can have chat.