For an FHA you need 640 score, and 3.5% deposit + 8% for closing cost which can be reduced by asking seller for help with closing cost. Good luck
Oh one more thing, get and stay with one agent. Do not look at properties with one them buy with another. That it's not fair. So if you have a cousing or friend like everybody here in Miami ask him/her to work with you, don't use him only for the purchase.
Congratulations on your 700 + score, very well done. However, being late will hamper those numbers a bit.
So without further adiou, you first need to pre-qual and pre -approve yourself with a mortgage broker /or lender. You will complete an extensive application and get an pre -approval base just on your credit score, income and debt ratio. ( Your home to be determine)
Now with your pre-approval in hand, your assured how much house you can afford. Yes, you have savings and you have income, great but you don't want to use all your savings into your home and then you can't afford to buy your new furniture. The pre-approval is very fast all computerize calculations. Your credit will be run do not worry this will not affect your credit score, unless your out giving your ss number to everyone.
FHA is the way to go, you can do FHA with as low as 3% down and possible sellers consession.
I have a great lender with staff that are on the ball and works 24/7. Really!!
How may I help you?
305-384-8997 text or call
You are in much better shape than most buyers. Your credit score of 700 is great so your credit should not be an issue for an FHA loan. This loan type is for owner-occupants and allows you to get into a home with only 3.5% of the sales price as a down payment. As for your income, you did not provide any debt service amounts (minimum payment on credit cards, car payments on loans having 10 months or more left topay, student loans or any other loans, any loans you may be a co-signor on) so I will give you some calculations based solely on your income of $4500/month. With your credit, FHA guidelines will allow up to a 50% total debt ratio. This means that $2250/month is yur maximum total debt service payment that you qualify for. Any other debt service payments would need to be deducted from this amount to determine the maximum housing expense you qualify for. So, if you have a car payment where you owe more than ten payments, that amount would be deducted from the $2250. Minimum payments on credit cards and other debt payments would also be deducted from the $2250 to determine the maximum housing expense you qualify for. If, for example, the total of your other debt is $500, then you would qualify for a $1750 payment. We would then deduct the amount of the monthly property tax , insurance escrow and mortgage insurance escrow amounts from the $1750 to determine your maximum net loan payment. Assuming $2500 in insurance and $2500 in taxes, the ins and tax escrow would be $416.67 FHA mortage insurance will be approximately $120. The amount left over to pay the note (loan) is $1213.33. This payment corresponds to a loan amount of about $242000 at todays's low interest rates. The purchase price could be as high as $250000. With your $14000 you can buy in this price range but would need some seller contribution to complete the closing costs.
This deal is very do-able. Please feel free to call me to discuss in greater detail as I know you may have many questions and I am very happy to answer them. I have been helping buyers and sellers of real estate for over 15 years as a realtor and mortgage broker and would love to help make your dream a reality. You can get a lot of home for $250000 with today's low interest rates. Do not miss out. You can also search for MLS listed properties on my website.
Thanks and Good Luck!
Jose I. Gonzalez 305-992-8624
Jose I. Gonzalez 305-992-8624
I don't want to belabor the point but the first thing you need to do is get pre-approved. You can try a bank, a credit union, etc. Large companies like Coldwell Banker have in-house lenders (Sunbelt Lending and Coldwell Banker Home Loans) that are considered major lenders and will give you competitive rates and excellent service (at least at CB). Please be sure you get a Good Faith Estimate from every company so you can accurately compare rates. I often tell my buyers that getting a mortgage is like shopping for a car: compare prices!
Lastly, find a good Realtor who will not only find you a good property but will have the knowledge to guide you through every step of the way. Good luck!
As you have clearly seen here, your first step will be to contact your bank, crediti union or mortgage banker and you will provide him/her with your information and in return you will know what you will qualify to purchase. As any Realtor here will tell you , there is not much you can do without a loan preapproval. The loan approval will provide you with a better idea of what loan you qualify for, the costs involved and in turn, allow you to immdiately place an offer once you find a home that meets your requirements. While there is a lot of home inventory, some homes that are priced properly will go under contract within days of appearing on the market, sometimes, you will find that your offer is not the only one being presented to a seller. Being properly prepared, informed and working with an experienced Realtor you will be able to make the home purchase you seek. If you do not know a loan officer you can talk to friends, family or co-workers that may have some good referrals for you. I work with several different loan offices that I find to be knowledgeable and professional. Feel free to contact me if you have any additional questions. Good luck in your home search.
RE/MAX Advance Realty
Your best bet is to a talk to your bank or a mortgage broker.They will take your whole financial picture into consideration and be able to give you the response.
FHA financing requires 12 months of clean credit, so if your 2 late payments were over 12 months ago, your credit history should be fine.
FHA just requires a 3.5% down payment (only $100 down if you find a home owned by HUD that you like), and the FHA loan limit is $345,000 in Miami-Dade County for a 1-unit property, so theoretically you have enough down payment for a $359,000 sales price.
In addition to the down payment there are closing costs though, and due to the higher property taxes + homeowners insurance those can add up to quite a bit in Miami. FHA financing permits the seller to pay up to 6% of the sales price towards your closing costs, and it's still much a buyer's market, so there may be a good chance that if you ask you'll get some if not all of the closing costs paid by the seller. If you don't want to rely on the seller paying those then you'll want to earmark around 3% of the sales price for closing costs (with a minimum of no less than about $6-7k).
$54k/year of income can qualify for SOMETHING, it just matters what. You didn't indicate what sales price you were looking in nor what your other consumer debt (car, credit cards, student loans, etc.) minimum required payments are... but those would the missing pieces to determine if your $54k/year of income could qualify.
1. Go with your lender. I have a good one here in Miami. Take your requirements and just go there (if you give me your email I will send the requirements).
2. Following what you said I think you are in great conditions for a FHA loan, but just wait for your mortgage pre-qualification letter. In that moment you will know what are you going to be able to buy.
3. Go shopping!