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Ian Corrigan, Home Buyer in Boston Area

Moving out of the parents' house...

Asked by Ian Corrigan, Boston Area Thu Jan 8, 2009

I'm looking into moving out of the parents' house and into a 1 bedroom condo with my girlfriend, most likely in Lowell, MA. I'm 24 & this will be my first time having to get a mortgage. I'm looking at pretty inexpensive places, mostly $70k and under. With the economy the way it is, is it going to be difficult for me to get a mortgage without a large down payment? I could most likely only afford around 5% for a down payment, maybe a little more. Am I going to be better off with a rental, like an apartment? I'd like to avoid renting, if possible.

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Answers

6
There are loan programs that require as little as 3% down. It is definitely doable as long as the rest of your credit profile is good.
0 votes Thank Flag Link Sat Mar 30, 2013
You could do as little as 3% down. I'm familiar with the Lowell area as well as surrounding communities. Give me a call if I can help!
Nancy Fudge
Fudge Properties
978-658-7300
0 votes Thank Flag Link Thu Apr 9, 2009
Finding a Buyers agent and getting a handle on what your can afford should be the 1st things you do. A reputable mortgage broker will be able to tell you what price range you can afford based on income and credit. Once that is established they will know of the programs that you will be able to apply for. Your agent should be able to find a home in that price range for you once established, but also be able to guide you a bit by extolling the virtues of the $7500 tax credit and a lot of 1st time home buyers programs. Just with the tax credit and interest rates and tax advantages of home ownership you should have an advantage over renting.

If you have any further questions feel free to contact me

You can look throughout lowell properties by going to : http://www.virtualhomesmls.com/realestate/MA/Lowell
0 votes Thank Flag Link Fri Jan 9, 2009
Ian,

Our advice is for you to consider contacting several loan specialists for specific input on your personal situation. With only a 5% deposit your best route may be to ask about FHA loan information.

If you are employed, have a small deposit, and your credit is good you should be able to purchase a place in your price range.

Good luck
0 votes Thank Flag Link Fri Jan 9, 2009
Ian,

Lots of things to consider! Your first step should be to find your self a Buyer Agent and ask for an introductory session to talk about the buying process. This will help with understanding the time-frame and costs involved, (down payment, inspection, insurance, etc.) Then the next step is to get a pre-approval from a reputable lender. Your agent can help you find one.

Then you'll be able to decide if this is the best move for you right now. You'll have to add in other costs besides your mortgage: condo fees, taxes, insurance, utilities.

Don't get me wrong, I think buying a home is a great investment, especially wiht the great buys out there right now, but I always try to determine if the timing is right for a particular buyer.

Good luck, and of course let me know if you'd like my help!

Deb
0 votes Thank Flag Link Thu Jan 8, 2009
You could try to get a FHA loan.

There aren't too many place on the market under $70,000 so your options will be slim but to get you started here is a link to every property for sale in lowell:

http://www.territoryre.com/idx/search.html?search=true&s…

Good luck!
0 votes Thank Flag Link Thu Jan 8, 2009
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