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Curious 2 Buy, Other/Just Looking in Norton, MA

I was wondering if someone can tell me if I can buy a home , I have a down deposit of $5,000- $10,000 for one I know I don't have good credit

Asked by Curious 2 Buy, Norton, MA Wed Dec 1, 2010

what do i need to get my own home

Thank You Curious to buy

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apply online with any bank to get pre qualified. This is a great place to get advice but you need to talk to a lender.
1 vote Thank Flag Link Fri Dec 3, 2010
I would agree that the main issue is the credit score. However I have too often had to explain to folks that although FHA or Mass housiing only requires 3-3.5% down...you will need more than that to purchase a home. The additional funds can come from a gift or seller concession but they do have to come up with the assets.

I also get nervouse with seller concessions because you don't know you have those until after the appraisal is complete. The seller does not have to agree to the concessions either. In my honest opinion .... if the property is really worth the higher amount why would I sell it for $5,000 less than what anoother buyer that doesn't need the concession would pay for the house. It is happening alot these days I had one recently that the appraisal came in low and the seller agreed to lower the price and still pay the concessions. It does happen more often than not.

But curiosus needs to focus on credit worthiness before worrying about how to make the DP.

Just my .02
0 votes Thank Flag Link Wed Dec 1, 2010
good rule of thumb, sure. But doesnt really help Curious in this particular situation. Since Curious does not have funds for closing costs then he/she will need to obtain a seller credit in order to complete the transaction. The mortgage professional will comunicate this info with the buyers agent. Buyers agent armed with this knowledge will be able to discuss with listing agent when making the offer for curious. so it is safe to assume that the seller will agree to this since it is the only way a transaction can be completed. If seller for some reason refuses then curious will hav to move on to the next home.

If i had to guess I would say about 75% of purchase transaction have a seller credit so it is not un-common at all. of course this is all assuming that the credit score is ok
0 votes Thank Flag Link Wed Dec 1, 2010
$205,000 * 6%
$12,300

3.5% down = $7,150
Wiggle room Seller Paid closing costs = $5,000
Total $12,150

I would say 5-6% is a pretty good rule of thumb! You cannot assume you will be able to get $5,000 in seller concessions but is certainly something to be discussed with our lender and Broker.

Call Hiedi below she is an Awesome realtor!!
0 votes Thank Flag Link Wed Dec 1, 2010
I closed a purchase mortgage yesterday for a client buying a house in Norton at a price of 205,000. Their down payment was $7175 and they received a closing credit from the seller for $5000 so they were able to get into the home with $7175 down and their closing costs were paid by the seller. If you have a 620 credit score or better and $5-10000 down it is def. possible to buy a house in Norton under this criteria as you only need 3.5% down for an FHA mortgage. I can provide a free credit check and if credit needs some work can also help you with that.
0 votes Thank Flag Link Wed Dec 1, 2010
Dear curious, there are some great programs out there right now. You really need to sit with a local lender and go over your specific situation to see where you sit. If you would like references please feel free to email me at mdmrealty@msn.com
Web Reference: http://www.mdmrealtyinc.com
0 votes Thank Flag Link Wed Dec 1, 2010
You have virtually no down payment and your credit is not good.

1st thing you need to address is your credit...what exactly does not good mean? If it is below 620 you need to forget about buying today and work on improving your credit score before exploring the purchase of a home.

2nd is your down payment. Realistically you will need 5-6% for down payment and closing costs to get into a property. You will have a little wiggle room on that with seller paid closing costs but that is a good frame of reference. The only other low down payment programs are VA if your are a vetren or rural Developement but Norton probably won;t fill the bill on USDA (Rural Developement)
0 votes Thank Flag Link Wed Dec 1, 2010
I am a Mortgage Banker based in Mansfield and would be happy to look into this for you. Will need to know a lot more info but it is definitely posible to buys a house with that down payment. Please feel free to contact me at 781-277-1792 or bouchermortgages@gmail.com
0 votes Thank Flag Link Wed Dec 1, 2010
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