Also there are 100% financing available for areas that are deemed rural. The catch here is that the determination of rural is off of the 2000 census. so many of the areas that are considered rural less than 10,000 people are now much larger than that however since its based off the 2000 census. These areas are places like Forney, Sunnyvale, Wylie, Sachse, and many others. Give me a call with any questions. My number is 214-682-0598. Also I offer a 20% of my commission gift after closing for being an exclusive buyer with me.

Have you considered of FHA loan. you will need only 3% down (%3.5 from October 1st). The advantage is that you don't have to pay PMI. I would advise you to contact a lender.

C.C. Its obvious that you have many options, and many people willing to help you. You should be proud of your credit score, however it is only one of several factors that lenders consider when qualifying you for financing. If you are unable to save money, are you living beyond your means? Do you have a lot of credit extended? You need to meet with a lender that you are comfortable with and tell them what your goals are. They can devise a plan for you and if you follow it, you will be in a position to buy in a year. You want to find someone willing to invest the time. You might want to go ahead and contact a realtor in your area, and let them know what your plans are. I have several clients that are unable to buy right now for various reasons, but we have put them on a plan that if followed will put them in a position to buy in a year or two. Be patient, find a lender that will work with you, and best of luck reaching your goals. YOu are very wise to start planning ahead!

You can use your credit to be a guarantor on a developement that I am working on and we can arrange a payout of over a million dollars.

I do agree that all lenders are not created equal. Finding a lender that you can trust to provide you with accurate information is the key to having a successful homebuying and closing experience. Finding a lender that is knowledgeable about what is and isn't available in today's market and who will set realistic and deliverable expecations is imperative since there are a variety of programs out there and each have their own set of parameters. Buyers should be aware of certain guidelines on loan options that have tightened up on qualifying recently so that they can discuss with their loan officer whether they meet those parameters and determine which program is right for them - both short term and long term. Providing realisitic and accurate information should not be misconstrued as negativity. The 80/20 programs are not as readily available as they once were 2 months ago, 6 months ago, a year ago...if you qualify, yes you can still get them, but none of the 100% Conventional programs allow for 6% seller contributions anymore, not even the My Community Mortgages. Maximum seller contributions towards buyers closing costs/prepaids are as follows: 6% on FHA, 4% on VA and 3% on Conventional FNMA/FHLMC unless a buyer puts at least 10% down at which time a seller is allowed to contribute 6% when the CLTV/LTV is 90% or lower. If you are buying in a rural area, you could do a USDA loan which is 100% financing with no MI and the seller is allowed to pay up to 6% on that program, but the home has to be in a rural area (Aubrey, Savannah, Cross Roads, Royse City, Forney are a few around us that USDA would work).

Sincerely,

Katie Sparkman
Sr. Loan Officer
Cornerstone Mortgage Company
972-238-7400, ext. 104
ksparkman@houseloan.com

In response to the previous answer from the lender...it is apparent that not all lenders are created equal. The lenders I use have both 80/20 and 75/25 programs...both with a 6% seller contribution towards Buyers Closing Costs available. These programs are readily available for scores starting at 700 and are not going away anytime soon...at least not with my lenders. Yeah, it's a tough time right now in the mortgage market...but don't let the negativity scare you. It's also a great time to buy...if it's done right.

Alan Wynn
Like NO ONE Else!
214.729.5582
info@DallasHousesOnTheWeb.com

In response to the previous answer about 80/20 financing, just be aware that this program has been tightening up and is quickly going away so it may not be around by the time you are actually ready to purchase. At current time there remain only one or two 2nd lien lenders willing to finance a 20% 2nd lien behind the primary lender's 80% first lien. They are being extremely picky even on the cleanest deals. The maximum the seller can pay towards your closing costs/prepaids now is actually at 3% - not 6%. The buyer has to have at least $500 into the transaction per FNMA, so you could get back part of your earnest money at closing as long as you have at least $500 that stays in the transaction (i.e. if you paid $1000 earnest money, you could only get back $500). It was and is a very good program, if it remains available and if you can qualify for the 2nd lien. They not only look at the credit score being 720 or higher, but are requiring 5-6 years of clean credit (meaning no late pays, collections, etc.) plus 3-6 months of house payments to be in cash reserves (money you have in liquid and non-liquid accounts after out of pocket closing costs are met) and maximum debt to income ratio not to exceed 45% (debt to income ratio refers to new house payment plus outgoing monthly payments on credit cards, loans, etc. against your gross monthly income). It is definitely a program worth applying for and discussing with a loan officer to see if you qualify, but these are things to be aware of so that you don't rely solely on this particular program to get into a house since there are other good options for minimum out of pocket that are not being eliminated (please read my prior post).

I hope this information has been helpful and if I can offer any assistance to you to determine what programs you do qualify for, please feel free to contact me.

Sincerely,

Katie Sparkman
Sr. Loan Officer
Cornerstone Mortgage Company
ksparkman@houseloan.com

WOW. With a credit score of 720, this isn't that complicated. With a score over 700, you have lots of options. The one that makes the most sense is an 80/20 loan program. This means that you would have two loans...the first would be 80% of the sales price and the second would be 20% of the sales price. So basically, this is 100% financing. The mortgage rates on these averaged together would be in the 7% to 7.5% range with the 80% loan as a 30 year fixed and the 20% loan as a 15 year fixed. In addition, the Seller is allowed to pay your closing costs up to an amount equal to 6% of the sales price. So basically...all things being equal...it is possible to buy a home with zero out of pocket...and even have your Earnest Money and Option Fee refunded to you at closing. This is the strategy I recommend to all of my Buyer clients. It all depends on how both the contract and the loan program are structured. It is very important to work both together. Also, your Realtor MUST work closely with the Lender in all phases of your home purchase in order to make sure it is the best loan program for you. You are in a good position to purchase a home and to get a good deal both on the property and the mortgage. Hope this helps. Please feel free to call or email if I can help further.

Alan Wynn
Like NO ONE Else
214.729.5592
info@DallasHousesOnTheWeb.com

I agree with all the answers listed here! One of the best programs I have been suggesting my Buyers to check in to is the Ameridream program, be sure to ask your lender about that one!!

There are still plenty of good programs in the market that will allow to structure for minimum out of pocket. Conventional programs require as little as 3% down and require a minimum credit score of 680 to secure MI (private mortgage insurance). Conventional financing will allow the seller to pay up to 3% of the sales price towards closing costs/prepaids on your behalf plus pay for the cost of the owners title policy. On $150,000 a 3% down payment = $4500. The total closing costs/prepaids/title policy are going to vary, but typically will run around $7000 +/- of which the seller can pay $4500 to closing costs/prepaids plus the title policy which would be around $1147. This would have total out of your pocket as little as $5853. If that is still more than you can save between now and the time you are ready to buy, you could also look at FHA options where the seller is allowed to pay up to 6% of the sales price towards your closing costs/prepaids plus owners title policy to get in for as little as $4500 total out of pocket which is the 3% down payment. In addition to that standard allowance, FHA also allows the seller to participate in a non-profit down payment assistance program that would allow the down payment to be gifted to you through them resulting in -0- out of pocket. You have to find the right seller and the right property that have enough equity to make those numbers work, but I see them everyday and know they are out there. Having a good realtor who can find the right property and negotiate the contract this way for you is key. I highly recommend Robert and Terri Hayley of Keller Williams (Terri responded below if you wish to contact them). FHA has recently increased the FHA loan limits for our are to $271,050 so depending on what price range you are looking in, that might be the right product to explore especially since the interest rates on FHA financing right now are about .50 below Conventional rates with 3% down and the monthly MI on FHA 97% versus Conventional 97% is about half as much ($150,000 FHA MI = $62.50/mo VS Conv MI = $120/mo).

If you have any further questions or would like to see some actual numbers I would be more than happy to assist you. My contact information is below. Good luck in your new home search!!

Sincerely,

Katie Sparkman
Sr. Loan Officer
Cornerstone Mortgage Company
972-238-7400, ext. 104
ksparkman@houseloan.com

Part of the current credit problem stemmed from so many loans being made to folks who didn't put enough money down (sometimes $0). The risk to the lender is that you'll be tempted to walk away if your home drops in value enough that the equity from your down payment is gone. A huge number of today's foreclosures is due to folks doing the math and deciding it doesn't make sense for them to pay down a $300K loan when their home value dropped to, say, $240K. Even if they put down 20% ($60K), they've lost all of their down payment and equity, so they have no "skin in the game" anymore. This makes them more susceptible to renege on their repayment commitment and mail the keys back to the bank.

A large down payment requirement is insurance for the bank that you'll be sharing part of the responsibility and hang tough if the market goes south, because both you and the bank have something to lose.

Had there been stricter down payment requirements in the past few years, fewer loans would have been made, which would have stopped the crazy runup in prices, and those loans would have been more solid, which would have prevented the foreclosure crisis we're in at the moment.

In other words, a large down payment is good for everyone involved, and good for the system, even if it makes it harder to buy a house.

If you make a "relatively good salary," it might serve you best to be very, very disciplined and save as much of it as you can into a liquid type of vehicle (e.g. money market account, mutual funds and short-term CDs). That way your savings will accumulate, you'll earn interest on them, and when the time comes to buy a house with your new, big down payment, your cash will be available immediately for your to pounce on a great house.

Note: this is not investment or financial advice, as I am not a qualified professional, just someone who's doing just that, and it's working out well for us.

Good luck, and congrats on your good credit!

CC,

Congrats on the 720+ credit score. That's awesome!

Have you talked to a loan officer yet? Or, are you just listening to the news, friends and family? There are still ways to get in for $500 move-in depending on the deal. We're getting some clients in for that now through our preferred lender, Katie Sparkman at http://www.katiesparkman.com. You can also roll closing costs in to the note if the house will appraise. The baseline for "A" credit as of today is 680, so you can still get the best rates with your score.

Is there a reason you want to wait another year? Are you looking to buy in Cedar Hill? Do you want new construction or resale? I'd suggest you find out your options if you'd really like to get a home now, but think you have to wait because of rates and money. If there is some other reason driving the timeline, (retirement, child graduating from a certain school, etc.) then you may want to wait until closer to the time that you're considering moving.

Thanks,
Terri Hayley

The mortgage market is in turmoil right now. 720 score provided for a number of programs a year ago. A year from now many things may be and probably will be different. Review your credit score with your loan officer and see if there is anything you can do in the next year to raise it. Also save as much as you can for down payment and closing costs. My guess is between the 3 factors you'll be in good shape to buy a home in a year if that is your goal.

I definitely agree with all the comments. You should be proud of your 720 credit score and understand that you can purchase a nice home. There are so many programs available for buyers in your situation. But using these programs does not mean that you are settling for a subprime interest rate. You should get somewhere around 5.75%-6% interest if you were to purchase now. Talk with a lender and get some information and you will be surprised with what you find. I'm glad that you have some money saved up, because as Jennifer stated you will have some upfront costs associated with purchasing. You definitely want to get a good agent that can help you. They will save you money, and a lot of headaches, as you work your way through this process! I'm not from the Dallas area, (about an hour and a half west) but there are some great agents in that area. I suggest that you contact one of them and have them help you. The service is free. What do you have to lose? Good luck with everything!

In the current market, this should not be a problem. If you have enough saved for closing costs and to do repairs on your own, you have enough for a down payment on an FHA or 95% conventional loan.

You need a buyer's agent who knows the negotiating process well enough to advise you about how to negotiate a contract wherein the seller agrees to pay your closing costs. You need to act soon though, because this works best in a buyer's market.

Your first step is to talk to a lender and see what they can do with you in terms of financing. People are still able to get good loans with very little down, but they are few and far in between. You can also shop around for lenders.

However, while you may be able to get financing, it's important to remember there's still a lot of cash you need to have up front when buying a home. The sellers of the house you make an offer on will most likely want you to put up some earnest money. There is no set rate on what the earnest money must be; it's negotiable. You'll also probably want time to inspect the property, the sellers will want money for that, and you'll probably want an inspector to take a look at the home as well. That costs money too.

Good luck and please let me know if I can be of any more assistance.

WOW 720 credit score! !! ! GREAT keep it.

I am a Dallas real estate agent, and a loan officer, we work with all types of clients there are many ways you COULD get into a house with seasoned veteran, there are many factors that play into that perhaps till I can review your file I can't provide the direction or course of action that loan officer can suggest.

There are many ways a real estate agent can have the seller pay for closing costs, you need a professional working for you.
Contact my office we can assist you,
972-699-9111
Lynn

First congrats on your credit score. You fall within a small percentage of people with that credit score. Keep up the good work.

You don't necessarily need a downpayment to buy a house especially with good credit score like yours. It's all part of how the loan is structured. I'll be happy to assist you and get you qualified for the best scenario that would fit your needs.

Please email or call me and I'll be happy to assist you.

Naima
naima@sumner-realty.com
214-289-8555