based on the information given if you were to purchase a $ 100,000 home with a FHA Loan:
- Downpayment 3.5. % = $ 3,500
- Closing costs about 6 % = $ 6,000 (Seller contribution to be used toward the closing costs of 6 % is allowed)
- possible interest rate 4.25 % (APR 4.78 %) would give you a monthly payment of $ 578.00 (principal & interest and Mortgage Insurance).
It would be my pleasure helping another 1st-time-home-buyer making their dream of homeownership come true.
Please feel free to contact me at your earliest convenience to discuss all details about a mortgage loan approval in the nearby future.
Lic. Loan Originator
I wish the answer were that simple. There is a world of information that can be very confusing for the first time buyer.
Rather than giving you a general answer, my recommendation is you work with a Realtor in that specializes in the area you are looking to buy and also contact your bank or a mortgage broker that can pre-qualify you so before you shop for your home, you know your perimeters.
The amounts you are talking about sound about right, as long as there is no increase in interest rates, insurance coverage or private mortgage insurance.
If you need further help, give me a call.
You have options to consider based on you eligibility for a mortgage loan. FHA loans are available for 3.5% down. In this case, your $100k budget would likely satisfy your down payment and your closing costs.
There is also the option of a conventional loan which will require 5% down. Since you are closely budgeting, and your price range is well below the maximum loan amount for an FHA, this seems to be the best fit.
So yes, $10k is enough money to buy a home priced at $100k with 3.5% down and closing costs. You can always ask the seller to pay a portion of your closing costs as well. They don't have to, but motivated sellers will consider the proposal especially if you offer to pay asking price (and the home will appraise at asking price.)
Be sure get pre approved for a loan 1st, then choose a Realtor second, before you invest time in home shopping.
Good luck to you!
It isn't a perfect situation, and maybe not even a good one,
because you will have PMI adding some to the monthly mortgage,
and with 10% down, you won't get the best Interest Rate either.
This doesn't include that most lenders want you to have some reserves behind you in case of emergency.
If you have until next year, you have time to build up your savings.
You want to continue to say your bills, but do not pay-off any credit cards, but rather, pay them down.
You can do this.
Good luck and may God bless