Property Q&A in Trenton>Question Details

Monique, Home Buyer in Trenton, NJ

Is it realistic to believe I can purchase a $90,000.00 house with a $5,000.00 down payment?

Asked by Monique, Trenton, NJ Fri Jul 31, 2009

I have a FICO score of 677 and I have been paying $950.00 per month for over two years. I am disabled but my yearly income is over $25,000.00.

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Bottom line. Yes you can-- Maybe. The critical issues are fourfold: 1. How good is your credit? 2. Will the house appraise for that amount? 3. Do you have enough cash to pay closing costs, moving costs and move-in costs, such as appliances, if needed? 4. Do you have enough income to qualify, beyond the credit score itself? I saved this one for last, because satisfying the mortgage company is sometimes easier than satisfying yoursef.

I say that because, in Trenton, a $90,000 house is achievable in this market. These properties are not new and you can bet that maintenance issues are going to arise. Your monthly income should be such that you have some surplus that you could squirrel away for that rainy day, which might just be the day that the roof springs a leak. No sense buying a house on the thinnest of margins and then finding that you are on the wrong side of the margin.

Best wishes.

Bill Holt
0 votes Thank Flag Link Fri Jul 31, 2009
Hi Monique, Ken has answered your question well - the availability of FHA programs with a 3.5% down minimum may be an option for you. You may also be able to build in some closing costs - the question is what you qualify for based on your financial situation.

Your best bet is to direct your question directly to a mortgage pro - I like Weichert Financial and Wells Fargo - they are both getting deals done! If you need contacts I'd be happy to provide them.

Be sure to also ask about the Federal Tax Credit - up to $8,000 but you must close your transaction by midnight November 30. You may also be able to tap a portion of the tax credit as a loan to cover down payment/closing costs - loan is interest free as long as it is repaid according to the guidelines.

What a great time to buy!

Good luck to you Monique.

Jeannie Feenick
"Unwavering Commitment to Service"
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0 votes Thank Flag Link Fri Jul 31, 2009
The answer to your question is... It depends.
You can purchase a home through an FHA insured mortgage with only 3.5% down payment. This would be less than $5000. You still need to remember that there will be closing costs though and between that and the 3.5% down you may go over $5000. Depending on the property and the owner you may make an offer asking for sellers assistance with the closing costs.

It IS possible to purchase a home for the amounts that you are talking about. The first step should be for you to contact a mortgage broker to get "pre-qualified" for the amount that you are looking to spend. The mortgage broker will help you determine if your income and situation will support the loan and purchase.

I work with Weichert Realtors and can give you the name and number of the Weichert Financial Services rep who does mortgages as well as a few other mortgage brokers in Mercer if you want to shop around.

My website has finance tools that will help you figure out estimates of what you want to spend and what your monthly payment would be. You can also do property searches in Mercer County from the website.

Feel free to call or e-mail me if you have any other questions.

Ken Szczeck
Weichert Realtors
0 votes Thank Flag Link Fri Jul 31, 2009
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