Home Buying in 53072>Question Details

lookingtobuy, Home Buyer in Pewaukee, WI

Mortgage question- Can I get a conventional loan with 10% down- about $8900 from stock and $15,200 gifted? My credit score is 785.

Asked by lookingtobuy, Pewaukee, WI Mon Jul 15, 2013

I know I can do the FHA route, but would like to avoid the lifetime mortgage insurance.

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Yes the mortgage insurance is a good enough reason to avoid FHA if you have good enough credit to qualify for conventional financing.

On a conventional loan, you'd need to have at least 5% down payment from your own funds (checking, savings, stock sales, etc) and you can get a gift to cover the rest of your down payment and/or closing costs

That's not a lender specific requirement. It's a standard Fannie Mae/Freddie Mac guideline which means it applies to ALL conventional loans.

So if I read this correct, you're looking to purchase a home for about $240,000 with 10% down? In this case, you would need $12,000 of your own money into the transaction before you could use a gift.

With those credit scores, you may want to look at a 3% down conventional loan. The rate will be low and the PMI much more reasonable (about 35% less than FHA). Then you could use a gift later on to outfit the home with furniture, applicances, etc.

Shoot me an email if you would like to speak in more detail!
Tony
0 votes Thank Flag Link Mon Jul 15, 2013
It sounds like a Wheda loan may be perfect for you. I have a loan officer located in Pewaukee that I not only send my family and friends to, but trusted to do my own purchase loan last month. Give me a call or send me an email and I'd be happy to help you get the perfect loan for your home purchase.
0 votes Thank Flag Link Sun Feb 16, 2014
Depending on where the home is located and your gross income, USDA offers 100% financing. When it comes to gift money, yes you can receive a gift toward downpayment. Typically conventional requires that the first 5% of the downpayment funds be your own funds and not that of a gift. Any gifted money after that is fine. We do have a loan program that permits all the downpayment to be gift money. The challenge is when you get to the Mortgage Insurance company. What we approve, they may not. In most cases they do, but that is still up to the MI company once you have less than 20% down. Otherwise, conventional allows as little as 5% down. FYI your credit is beautiful. Denise Olson PrimeLending A PlainsCapital Company https://lo.primelending.com/dolson
0 votes Thank Flag Link Tue Oct 1, 2013
There are several options for you that would make it possible to avoid the life time mortgage insurance. Call me to discuss these options. 253-332-5980
0 votes Thank Flag Link Mon Jul 15, 2013
There are various loan programs available that have 10% or less down, especially with a good credit score and employment record. The best thing to do is to contact a mortgage broker or your bank to get the details of various loan programs that will work best for you. Then, go ahead and get a mortgage pre-approval so that you know how much of a mortgage you quality for. At that point, please contact me again and we can look for the best property for you at a price that you can afford.
If you would like some referrals for mortgage information, just let me know. Kathy kschneider@firstweber.com.
0 votes Thank Flag Link Mon Jul 15, 2013
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