Home Buying in 19064>Question Details

Christina, Home Buyer in Springfield, PA

We are purchasing a home for $165K and putting down $80K. What financing options are available for us since?

Asked by Christina, Springfield, PA Thu May 8, 2008

such a large downpayment?

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Beware if you are taking out a FHA mortgage TODAY. The rules are changing again. Starting 4/1/13 you will have to PMI insurance for the life of the loan adding thousands of dollars to your loan. The old rule was if you had 22% equity you could wave it. Good Luck Tom Caruso REALTOR 610-505-0882
0 votes Thank Flag Link Fri Feb 15, 2013
By putting over 50% , your payments will be lower(depending on your credit score) and you will have no PMI payments. You need to talk to a mortgage agent about whether it is the best investment to put all your money on the house purchase or diversify.
0 votes Thank Flag Link Wed Mar 23, 2011
If your credit is in good shape, the good news is the world is your oyster!

With a down payment of this size and good credit, you can pretty well name your loan product and name your rate.

Of course there is 30 year fixed. But for nearly the same payment you can get a 25 or 20 year amortization loan.

A few questions to ask yourself before deciding on a loan product:
1. How long will we live here?
2. Is our goal to pay the mortgage off as quickly as possible?
3. While living here, will we need to access the equity, or do we have adequate reserves elsewhere?
4. Do you want an interest only option?

Find a local lender who understands how to work with customers of your status and keep asking questions.

Good Luck!

Trey Bowden
(405) 340-3277
0 votes Thank Flag Link Thu May 8, 2008
Your questin reminds me on Jemmy Kan who I told him to buy a wonderful condo at Edison Hollow South http://raspberryct.blogspot.com/ many year ago. After he saw the nice condo and learn it only cost $80,000, he said he can buy it IN CASH!!! Wow!

So, I told him, if he has $80,000 cash in bank, he should buy 5 units with each 20% down. Somehow, 20% is a magic number that bank feel comfortable and treat you as valuable customer and willing to give you best rate yet little hassel.

If Jemmy bought only 1 condo, after years appreciation, he shall have made much less. This would be true in your case when you look back 20 years later...
0 votes Thank Flag Link Thu May 8, 2008
There is a new trend in financing homes that is jusst starting to hit the U.S. Its called Truth in Equity. It sounds like a scam at first but many Buyers like yourself probably fit the profile. I am a rea estate agent so I have nothing to do with this but I have a Client who used it and it works and its on the up & up. Hit the website to learn about it
0 votes Thank Flag Link Thu May 8, 2008
Hello Christina,
Your credit determines what can and can't be done but it also depends on your debt to income ratio. How much existing debt you have compared to your verifiable income. If your credit is good and you can qualify, you should be eligible for good rate and terms. Good Luck! Feel free to contact me if you have any other questions, I would be happy to assist you.

Michael D Delp
Mortgage Pro
4802 Old Bethlehem Pike,
Telford Pa. 18969
Ph- 215-453-1025
Fax- 215-453-1012
Cell- 610-762-0318
0 votes Thank Flag Link Thu May 8, 2008

Your financing options will all depend on your credit. With such a large chunk of a down payment you may be able to qualify for conforming rates since you won't need any private mortage insurance. If your credit is ify you may be able to go FHA. Is your income verifiable? There will be a lot that goes into the initial mortgage application. Please feel free to contact me if you have any questions you may have 800-839-6186x334. Thank you and good luck
0 votes Thank Flag Link Thu May 8, 2008
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