Home Buying in The Woodlands>Question Details

Jay Underwood, Both Buyer and Seller in Harris County, TX

If I put 80k down with a 646 credit score on a 200k house should I be able to get a loan?

Asked by Jay Underwood, Harris County, TX Sun Dec 9, 2012

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Answers

16
Probably yes, and with less than $80k down. If you are a Veteran, the Texas Veteran's Land Board interest rate this week is 2.87% It changes every Friday. If you qualify for VA, you may qualify for no down payment, and only need to pay your closing costs. If you qualify for FHA, you could get in for less than 5% down payment, ($10,000 on a $200,000 home) plus closing costs. With a conventional loan, you are generally required to pay 20% down payment, ($40,000 on a $200,000 home) plus closing costs. With interest rates so low, you may want to pay a lower down payment as required by the loan you qualify for, although you can always increase your down payment to lower your monthly payment on the mortgage.

The other criteria you would need to meet is to have verifiable income with a debt to income ratio that will meet the guidelines of the loan you are applying for. These vary from loan to loan.

You very likely will qualify to purchase a home with the income and down payment you describe. However the only way to be sure is to get pre-approved by a lender who will look at your whole financial picture and give you your options.

Feel free to contact me for more information. I would be happy to set up a free website for you that will show you the homes on the market that fit your criteria as well as posts new listings as they come on the market.

Thanks

Edith Raney
1 vote Thank Flag Link Mon Dec 10, 2012
Best next action is to ask a local Mortgage Broker by clicking "Find a Pro" in the main menu at the top of this website. http://www.naplesrealestateguys.com/
0 votes Thank Flag Link Fri Apr 12, 2013
Thank You everyone, Trust Mortgage is runing my credit for a PQ as we speak so please stay tuned.
0 votes Thank Flag Link Mon Dec 10, 2012
Based on that information you should be able to obtain financing as long as other important factors are in line like your debt ratio and established credit etc. If you would like to talk about your situation in more detail please give me a call or email me.

Best of luck to you.

_______________________________________
Don Groff
REALTOR® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
o 512.669.5599 m 512.633.4157
listings@dongroff.com | http://www.AustinListed.com
0 votes Thank Flag Link Mon Dec 10, 2012
You might want to check out some articles/books by Steven Marshall, Doug Andrew, Rick Edelman. Although you are doing a great job, you are missing some very important information to building your investment portfolio. You are kinda driving with one foot on the gas pedal and one on the brake pedal.

Best of Luck!
Ron Jensrud
Exclusive Buyers Agent
0 votes Thank Flag Link Mon Dec 10, 2012
Jay
I think Tom means that as none of us are financial advisors we can't give you the advice and that's why it will be best if you sit down with your financial advisor who can look at the bigger picture with you and make suggestions.
I work with lots of people who are now diversifying their portfolio and can help you find the right investment property in addition to your personal home. There are very few realtors qualified and have experience in this area. In fact I have my own invetment properties and I am helping several of my Petroleum industry friends in investing their self directed IRAs with the help of IRA mangement companies.
Even if you don't invest in an investment property you should still consider your own home as a biggest investment you will make like most of the people and you should talk to experienced people from realtors to accountants to financial advisors to educate yourself on your options.
There are lot of good experienced people in our community and you just need to take a first step of contacting and interviewing few of them to find the best fit for you.
With your savings, job history and credit score you should be able to buy a home. And when you ask for Prequalification letter from a lender please make sure they do a detailed analysis. As lot of lenders give out a prequal letter without getting too much details and when buyer makes an offer and is ready for a loan he/she finds out that something is amiss and they won't qualify. As a realtor we are seeing several of these cases where buyer couldn't close on a home due to small thing that made them disqualify.
priyanka
Priyanka Johri - Eco-Realtor
Your Agent of Change
Better Homes and Gardens Gary Green
832-277-3577
http://www.TheWoodlandsEcoRealtors.com
0 votes Thank Flag Link Mon Dec 10, 2012
Jay
How you decide to finance really doesn't matter to me. I am not going to give you investment advice.
I will say: Yes, your scenario easily fits loan guidelines.

Good luck

Tom Burris
Mortgage Banker
DallasLoanGuy.com
(214) 763-4629 cell/text/nights/weekends(Really!!)
tomburris@dallasloanguy.com
Lending all across the entire Great State of Texas!!
NMLS# 335055
Search Dallas area MLS for FREE. No registration => http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
0 votes Thank Flag Link Mon Dec 10, 2012
Jay
Wow. May I say I am impressed. You should definetly consider buying 2 homes or more by leveraging what you have. Real Estate is one of the best wealth building strategies. Unlike stocks homes are much solid investment. In stock market if you buy $100 worth of stock and if that particular company crashes your stock can go to zero. Remember Enron. Now in worst case scenario if housing market crashes you still have a brick and mortar. You never go to zero. You may lose some percentage of the investment but never all. And while rest of the country suffered we just fluctuated in Houston market and we didn't even have a stong enough blip in The Woodlands market. After last oil and gas crash Houston as a city has diversified and we have multiple industies in different fields to support our economy. So even when one sector goes down other sectors supports the economy. In Woodlands we are seeing surge of multi national companies bringing in all kinds of jobs. So over all its a great place to invest if you are so inclined. You should consider making Real Estate as part of your investment strategy for long term mixed with mutual funds and stocks. This will give you for diversified portfolio.
I hope I am being clear and making sense.
priyanka
Priyanka Johri - Eco-Realtor
Your Agent of Change
Better Homes and Gardens Gary Green
832-277-3577
http://www.TheWoodlandsEcoRealtors.com
Priyankajohri@hotmail.com
0 votes Thank Flag Link Mon Dec 10, 2012
I'm 27yrs, same job 6+ years, own a paid off home est 7-9 months ago 109k. I feel very stong on 35% - 50% down after current home flips.
0 votes Thank Flag Link Mon Dec 10, 2012
Hi! Jay
Depending upon what stage in life you are you should consider all the options. If you are near retirement age than this is a good strategy. But if there are few years before you retire you shoud consider that -
Today's interest rates are historically low. If you can get the mortgage you should consider getting as big of a loan as possible from investment point of view. Use as little money to for down payment as you can get away with. Say $40K. Now use the rest of the $40K towards another down payment to buy another house and rent it out. USe the retal income cash flow to pay the mortgage for that house.
So now you have $40K invested but you have some one else paying off your mortgage.
So by the time you retire equity from your rental home adds up. At that point to reduce your risk exposure you can sell the property or refi to have a lower payment and extra rent that you will have can add to your retirement pay.
Please find a good investment adviser and discuss different options available to you.
If you need me to I can send you few names right here in the Woodlands who can talk to you and figure out what will be best for your case.
I must congratulate you on having $80K in savings. That tells me you are a savy buyer. It will be apleasure to work with you.
priyanka
Priyanka Johri - Eco-Realtor
Your Agent of Change
Better Homes and Gardens Gary Green
832-277-3577 http://www.TheWoodlandsEcoRealtors.com
0 votes Thank Flag Link Mon Dec 10, 2012
I make 100k a year, I want to put-down 70K to 80K to Lower monthly payment.
0 votes Thank Flag Link Mon Dec 10, 2012
Yes, and with putting less than $80K down (unless you just want to), assuming you meet or exceed the other requirements, such as income and income to debt ratio, etc. I have several lenders who can help you. Feel free to call me if you'd like their contact info.
Linda Startz, J.D., GRI, e-Certified, CHMS
Better Homes and Gardens Real Estate Gary Greene
281.682.4452
http://www.lindastartz.com
0 votes Thank Flag Link Mon Dec 10, 2012
Hi! Jay
I am assuming that there s a reason you are offering to put $80K down. There is lot more to getting a mortgage than downpayment and crediyt score. Like your income, how long you have been on this job, income to debt ratio etc.
You can surely get a loan on this credit score if other requirements are met.
That said even if you can't get the mortgage from bank you can still buy a home especially if you have enough money for down payment.
I get lots of international clients who do not meet the mortgage industry requirements as they usually come here for relocation for a job and are just trying to get settle in.
I have been able to help them by getting owner financing. If you have a good income and a money for down payment you can also get into a home with owner financing. I have been able to help lots of my clients through this.
You will need an experienced agent who has done this succesfully and is well versed in it. As it takes a detailed explanation to convince an owner to go this route. This kind of transaction has to be beneficial and secure to both buyers and sellers. Should be done at a Title company who also has experience in this.
As mortgage industry has tighten the rules so much its not only buyers who are suffering but also the sellers. So this can be a wonderful situation for both buyers and sellers.
In fact I have few owners right now in The Woodlands who may be open to this right away.
Please let me know if you have any questions or need any help. I will be happy to help.

Priyanka Johri - Eco-Realtor
Your Agent of Change
Better Homes and Gardens Gary Green
832-277-3577
http://www.TheWoodlandsEcoRealtors.com
0 votes Thank Flag Link Mon Dec 10, 2012
Large down payment usually makes the Automated Underwriting computer approve pretty low scores.
While some banks might have higher credit standards, Fannie Mae only needs a 620 with a down payment of that %

If the computer 'approves' the file.... My guidelines will take you.


Tom Burris
Mortgage Banker
DallasLoanGuy.com
(214) 763-4629 cell/text/nights/weekends(Really!!)
tomburris@dallasloanguy.com
Lending all across the entire Great State of Texas!!
NMLS# 335055
Search Dallas area MLS for FREE. No registration => http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
0 votes Thank Flag Link Mon Dec 10, 2012
Like Edith stated, yes and you should not be required to put $80,000 down. I would talk with your bank about the many options you have. It would be a good idea to keep money in your savings account for an emergency.
0 votes Thank Flag Link Mon Dec 10, 2012
Jay,

Absolutely. Most lenders require a 640 score. Feel free to contact me for more information. I would be glad to assist you!

Thanks,

Mike Yoder
0 votes Thank Flag Link Mon Dec 10, 2012
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