Home Buying in Gilbert>Question Details

angela, Home Buyer in Gilbert, AZ

I potentially have $100K equity. looking to downsize to around 2500SF. Credit is about 500. Is the large down of $100K enough to get a loan?

Asked by angela, Gilbert, AZ Wed Feb 12, 2014

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16
Hello,

Are you still looking to downsize?

I would be happy to try to assist you. The first step would be to talk to my loan officer partner Ann Marie.

She would be able to help us obtain your goals.

Looking forward to hearing back from you,
0 votes Thank Flag Link Fri Jun 20, 2014
Angela

We can get you a loan with $100,000 down payment, the question is should you get a loan? What are the rest of your circumstances causing the low credit score. Do we need to discuss other items and possibilities for you?
0 votes Thank Flag Link Fri Feb 14, 2014
What type of loan you choose will depend on what price home you want to buy and what your $100K ends up being (i.e. % of the down)

The lowest credit score to buy a house or refinance your mortgage is 500. These new requirements for both FHA and VA went into effect in 2010.

•Fannie Mae requires a minimum score of 620
•Freddie Mac requires a minimum score of 620
•FHA requires a minimum score of 500
•VA requires a minimum score of 500
•USDA requires a minimum score of 580
•Portfolio requires a minimum score of 640

Talk to a lender. They can guide you through this. If you don't have one, I can provide some options.

Hope this helps. Regards.
0 votes Thank Flag Link Thu Feb 13, 2014
Hello Angela,

You need to contact a Lender first please call Karen Jones 480-339-1577 with AmeriFirst she will tell you exactly what you need to get this done. Please let her know that I sent you.

Have a GREAT day!

Vivien L Biggs PLC
602-615-9137
Prudential Arizona Properties
0 votes Thank Flag Link Thu Feb 13, 2014
Angela,
A $100,000 Down Payment is pretty serious what is the purchase price range you are looking ?
0 votes Thank Flag Link Thu Feb 13, 2014
Angela, I have several options for you that will allow you to get in to another home. If interested please give me a call at 480-695-3792.
Jim Carlisto PLC, ABR, CDPE, CSSN
RE/MAX Hall of Fame
0 votes Thank Flag Link Thu Feb 13, 2014
Angela,

I would say, like most of the agents have already mentioned, there are basically two ways you can go. First off, if you are not in a big hurry to move, I would talk with a lender to see what you could do to improve your credit score. Sometimes it may only take a few months, and depending what is on your credit, you could improve it significantly. Then at that time, you may qualify for a conventional loan, and you might not have to put $100k down in order to downsize, if you were interested in investing that money in something else. Otherwise, you might be able to live very comfortably with that large of a down payment. Doing it this way will open you up to many more options when it comes to finding the right home.
Obviously how much income you make, and the length of time with your employer will also determine how much home you qualify for.
The other option would be to try and find a home seller that would carry the loan. This will limit the number of homes available to you because most home sellers want/need the money from the sale of their home, and do not want to be the bank for a buyer. Also, the interest rate is typically higher than a conventional loan due to the risk the home seller is taking. The benefit is that you will have no lender closing costs, and you can sell your larger home and move into a smaller home immediately.
The other option of hard-money would be one I would personally try to avoid because there is no advantage in this option compared to the other two. If you can fix your credit, or can find a seller to carry back the loan on a new home, I would not even consider hard-money.
The thing you need to do is contact a lender and explain your situation. I would even talk to a couple different lenders to get a few different ideas. Then, after you figure out what you want/need to do, I would contact a Realtor to help you determine what you might be able to sell your current home for, and how much equity you could have in that home. Once that is determined, if you decide to sell, that same agent can help list and sell your current home and purchase your new home.
0 votes Thank Flag Link Thu Feb 13, 2014
The numbers seem sufficient but without speaking with a lender directly about your situation and discussing all the variables it would be hard to determine. Your FICO at 500 isn't a very good number and that could either deny you or really hurt your mortgage payments.

I would suggest calling Ben Andrus. I had some circumstances come up and had to switch lenders. My realtor, Matt Long suggested I contact him and it was the best decision I made in the entire process. If you already have a lender than I would say stay with them if you are happy, but if you are shopping around, I would highly suggest at least making a call to Ben.

Ben Andrus at Primary Residential Mortgage, Inc. His direct # is 480.529.7016 or ben@benandrus.com. You don't need to say I referred you, I don't get anything from it, but you can tell him I said hi.

I bought my house in Gilbert in February 2013.

Matt Long my realtor's # is 602-284-3553
0 votes Thank Flag Link Thu Feb 13, 2014
Have you spoken directly with a lender about your scenario?
0 votes Thank Flag Link Thu Feb 13, 2014
Angela,
There are many ways to skin a cat (not that we should skin cats.. .:) I personally would say the best option would be to sit down with a good realtor and a great loan officer at the same time. Your score of 500 may be accurate, it may be a little inaccurate. There also may be a couple quick and easy things we could do to bring the score up substantially. There are seller carry options, short term hard money options, specialty loans, etc that can work... but, if there is a better option that can be had with 60 days or so of working on your situation, I say do that. Hope that helps and good luck! TravisDutson@gmail.com
0 votes Thank Flag Link Thu Feb 13, 2014
I'd say you're in very good shape, Angela! I would look for private seller carry back properties were your credit score is not such a big issue so long as you have 20-30% down payment. I can send you seller carry back listings and explain in detail how these work. Would love to help you. I've been a Realtor for 25 years. Please consider putting my experience to work for you. Best regards, Doris
0 votes Thank Flag Link Thu Feb 13, 2014
The answer is yes. You will pay a little higher rate but your new smaller Mortgage will get your monthly payment more in line with your liking. Send me an email and I will get you in touch with a top mortgage broker here in Gilbert. jim@itisagoodlife.com Canusa Advantage Real Estate
0 votes Thank Flag Link Wed Feb 12, 2014
With that amount of equity, you may want to consider a Seller Carry. You can find a home with 10-20% down with a descent interest rate. Call me and I can explain how the program works. You wont have lender lender closing cost. The cash down will befits you. Grant Grether 602-628-6689
http://www.GrantGretherRealEstate.com
0 votes Thank Flag Link Wed Feb 12, 2014
angela,
I would suggest you take your equity and take some time to fix your credit. Once you do this, you'll solve two problems at once and improve the rate you may get if you do qualify. The only lenders likely to consider you (if your reported score is accurate, often consumer obtained scores are not) would be a short term "hard money" loan. These typically have high fees, high rates and must be paid off in just a few months. This may or may not be enough time to resolve your credit issues and improve your scores.
Meet with a great local lender and find out what scores they obtain and see what steps you may be able to take to qualify sooner. Best of luck.
0 votes Thank Flag Link Wed Feb 12, 2014
There are definitely programs out there that will allow you to qualify. It all depend on your debt to income ratio. I live and work in Gilbert. If I can be of any assistance give me a call 602-999-9874 or bryce@fourpeaksbrokerage.com
0 votes Thank Flag Link Wed Feb 12, 2014
Hi Angela, I work with the BEST LENDER in the valley! If there is a program available for you, I'm sure they have it. I would love to talk with your about your existing home and provide you with an accurate home valuation. Please fell free to contact me at 480-201-9593 or Mike@SchudeGroup.com. You can also request a free home valuation at http://www.InstantPropertyValues.com/85234
0 votes Thank Flag Link Wed Feb 12, 2014
With that amount of equity, you may want to consider a Seller Carry. You can find a home with 10-20% down with a descent interest rate. Call me and I can explain how the program works. You wont have lender lender closing cost. The cash down will befits you. Grant Grether 602-628-6689 http://www.GrantGretherRealEstate.com.
Flag Wed Feb 12, 2014
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