Home Buying in Omaha>Question Details

Mellisa P., Other/Just Looking in

I am looking to find a home loan. I have a 690 credit score and I only have about 5 percent to put down what is the best type of loan for me?

Asked by Mellisa P., Sat Dec 8, 2012

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17
Suzan Downing’s answer
Hi Melissa. Your choice of financing could depend on the particular home you decide to offer on, so it is good to determine all of your options upfront. I won't repeat all of the good information already posted, but I do want to mention a new conventional loan product being offered by a lending institution here in Omaha that only requires 3% down with a special down payment assistance program for first-time home buyers that can knock that 3% to a minimum of $500 down via a low-interest 2nd loan. You do need a min credit score of 700. If you are interested in speaking with this lender, give me a call 402-689-0121. It is worth checking out even though you say your credit score is 690 because it could actually end up being something a little different when the lender pulls your scores from all three bureaus. Would love to help you in your search. All the best to you!
Suzan Downing
Keller Williams Omaha
suzandowning@kw.com
402-689-0121
0 votes Thank Flag Link Sun Jan 27, 2013
BEST ANSWER
Mellisa,

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.
0 votes Thank Flag Link Sat Dec 8, 2012
bad answer
Flag Wed Nov 13, 2013
Thank You this was very helpful.
Flag Sat Dec 8, 2012
Conventional loans with 3% down are available with some lenders. Check out The Lenders Network they can refer you to a lender that offers this loan program..
2 votes Thank Flag Link Tue Oct 1, 2013
My apologies. I see this is a year old question. This just happened to pop on my email.
0 votes Thank Flag Link Thu Nov 14, 2013
Mellisa you have a few options. Needless to say the complete application would need to be taken to give you the exact answer. FHA is 3 1/2% down but has mortgage insurance for the life of the loan. FHA may be easier to get than conventional. Conventional is possible depending on other details of your application. Conventional will only have private mortgage insurance until you reach that 80% loan to value mark. Conventional will require 5% or more down. You are certainly not obligated but if you would like to fill out the complete application on my website http://www.debradodge.com I can give you more detailed answers. My phone number is 402-312-9775.
0 votes Thank Flag Link Thu Nov 14, 2013
You don't have to go FHA like others have mentioned the FHA MI is 1.35% of the loan amount now and its on there for the life of the loan so frankly I WOULD NOT go FHA unless you had to as a last resort. You can do conventional with a 690 score and buy out the monthly mortgage insurance. Even if you don't buy out the insurance is always lower than what it is FHA. FHA also has a 1.75% upfront mortgage insurance premium on top of the loan amount.

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.

Scott Francis
Deeb RE
402-699-9555
0 votes Thank Flag Link Wed Nov 13, 2013
Did you get your preapproval and loan taken care of? I am a senior mortgage banker at LeaderOne in Omaha. If you need more details for FHA and are ready to be preapproved check out my website at http://www.debradodge.com There is also a secure onlne Apply Now Button.
0 votes Thank Flag Link Tue Nov 12, 2013
Hello how are you hope you're well? My name is Johnson,the loan lender from Dakar,senegal my dear if you are looking for a loan i guess you have to trust me because i work with bank of africa here in senegal so my dear if you really need a trust loan contact me at johnsonmenaki@yahoo.com
0 votes Thank Flag Link Sun Jan 27, 2013
If you are considering a new home in Omaha, Celebrity Homes has 4 preferred lenders that could help you. http://celebrityhomesomaha.com/financing.html

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.
0 votes Thank Flag Link Sat Dec 15, 2012
Mellisa,

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 dennis@mortgageloansofamerica.com.

Thanks,



Dennis W Clark
Freedom Lending, LLC
NMLS#13970
http://mortgageloansofamerica.com
0 votes Thank Flag Link Mon Dec 10, 2012
Hello Mellisa,

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.

Kris Swanson
DEEB Real Estate
402.740.7765
0 votes Thank Flag Link Sat Dec 8, 2012
Melissa,
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!

Cory Fuller
Trulia Pro Agent
Prudential Ambassador
402-680-2393
cory.fuller@prudentialambassador.com
0 votes Thank Flag Link Sat Dec 8, 2012
FHA most probably & you can check out VA(if you have served), USDA & some others if first time homebuyer
0 votes Thank Flag Link Sat Dec 8, 2012
I have conventional single premium loans that would be far superior to an FHA loan. The private mortgage insurance would be financed with no up front PMI like an FHA. Thus, you would save more than $100/mo on a $200,000 loan. If you want a new home and not a used house, I have 5 lenders to choose from and we'll pay closing costs and credit a portion of your fist years home owners insurance. Contact me at http://www.MichaelJMcGlynn.com for more information and to set an appointment.

Regards,

Mike McGlynn
0 votes Thank Flag Link Sat Dec 8, 2012
Hi Mellisa,
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 kelly@gittrealestate.com. I'm happy to help!
Best of luck,
Kelly Gitt
Broker/Owner
Gitt Real Estate
0 votes Thank Flag Link Sat Dec 8, 2012
Hi Melissa.
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.

Suzan Downing
Keller Williams Greater Omaha
402-689-0121
suzandowning@kw.com
0 votes Thank Flag Link Sat Dec 8, 2012
Mellisa,

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.

Good luck.

Brian Birkel
(402) 706-7532
Deeb Realty
0 votes Thank Flag Link Sat Dec 8, 2012
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