The short answer is yes but you need to answer the most important question?
â€¢ Is your annual income stable and at least $60,512.00 because most lending institutionâ€™s or private home sellers will not make a loan to a person whoâ€™s income exceeds 30% of their total annual income.
$200,000 loan amount (Home purchase price)
4.00% 30 year fixed rate no points (For example only)
$954.80 Monthly principal and Interest
$125.00 Monthly mortgage insurance (This applies if less than 20% downpayment.)
$350.00 Monthly Real Estate taxes (Based on $200K home $4,200)
$83.00 Monthly homeowners insurance ($1,000 per year)
$1,512.80 Total monthly carrying costs.
$18,153.60 Annual carrying costs. (Equals 30% loan to income ratio)
$60,512.00 Annual minimum income required to support expenses.
Depending on your personal situation you may be able to receive a 100% loan from CHFA (Connecticut Housing Finance Authority)
Carolyn, I hope this helps with your decision please feel free to contact me anytime with your Real Estate questions.
Mark Gracia â€“ Realtor
William Raveis Real Estate
465 South Main Street
Cheshire, CT 06410
Please note: If you are currently represented buy another Real Estate broker this is NOT an attempt to interfere in anyway with your relationship. The above information is for example purposes only with no guarantee inferred or implied.
The no money down USDA mortgage may work for you if you're ok with living on the out skirts of town in an area like Prospect, Bethany or Northford.
The USDA program is only available in eligible rural areas. You can use the following link to see which areas are eligible around Wallingford.
One of the best things about this mortgage is the monthly mortgage insurance is substantially less than an FHA or conventional mortgage and that's with no money down.
Here's an example: An FHA mortgage of $200,000 is going to have a monthly mortgage insurance payment of $208.33 but on a USDA mortgage it's only going to add $66.66 to your monthly payment.
The other nice thing is you can actually roll your closing costs into the loan as long as the appraised value supports it.
Please feel free to contact me for more information or help. You can also find info on my USDA Mortgage website by clicking the link below.
Senior Mortgage Banker
Peoples Bank & Trust
There is an annual review of your household income and the payments are adjusted each year based on your income.
Finally, there is a recapture term associated with USDA loans whereby if you sell the home in the future (I recall something like within the first 10 yrs, double check that) then USDA can recapture some of profits that you might realize from the sale. That's not unreasonable in my mind since the recapture simply makes up for the interest rate discount you received while you owned the home (I recall they offer as low as 1% interest rates, also confirm that) and the shared appreciation lets USDA refund their program to help others.
CHFA is also a great program to consider like Esther suggested. FHA is out of the question I believe since 5% down is required and you don't seem to have that saved up (I think others who answered before me missed your disclosure that you only have $3,000 saved).
Best of luck to you with your desire for owning a new home.
Greg Hanner, Broker, REALTOR, e-PRO
I would like to also make a recommendation. If you have two incomes, use only one income in determining what you can afford. By doing this you will be able to save for the future. Good luck and I'm available if you need a Realtor.
Esther Farr, GRI