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New Buyer, Home Buyer in Northern, CA

Are there any other loans avail other than FHA when seeking a low down payment?

Asked by New Buyer, Northern, CA Wed Apr 23, 2008

I have a great credit score (high 773, low 753) with no debt and a fair amount of money saved - enough to cover 3-5% of a down payment, and including other closing costs. I've been offered an FHA loan, but I thought these loans were for the "credit-challenged" borrower. Is there anything else available out there that, perhaps, my lender isn't telling me about?

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BEST ANSWER
FHA is as much for the "down payment challenged" as it is for the "credit challenged". The lending belts have tightened substantially, limiting the programs available for low down loans. FHA is a great program with excellent interest rates for those with low down payments. What are your concerns about that program and what are your financing wants that FHA isn't meeting?

Good job on your credit score.
1 vote Thank Flag Link Wed Apr 23, 2008
Across the country we are finding most of the "no down payment - low downpayment" loans disappear. Unfortunately, PMI companies will no longer insure properties if the buyer is making less than a 5% investment - therefore, unless you are a Veteran, this is likely your best option!
Web Reference: http://www.ncfhaexpert.com
1 vote Thank Flag Link Wed Apr 23, 2008
FHA is not only for the credit challenged. The only true difference between a FHA and a Fannie Mae (conventional) is there is a upfront Mortgage insurance premium due at closing. Alot of times FHA even has better rates! Im not sure where Mr. Ruesing is coming from. What does it matter if the lender makes more money if they sell the loan to FHA, Fannie Mae or Auntie Mae. Your rate and your payment is all that counts.

Call me if you need further clarification and/or a great rate quote.

Ryan
888-271-2221 ext 203
0 votes Thank Flag Link Thu Apr 24, 2008
Yes there are but it still depends on many things. with a credit score like that it definately opens up a lot of doors but alot of banks will not do this type of loan if the loan size is to big. remember that lenders only want you to go with them. as a broker it is my job to find you the best deal out there. also, the main reason many peole want to go FHA now days is because they will make more money by sell an FHA loan rather than a conventional one.
if you would like me to work up some numbers for you and place you into a loan program please give send an e-mail to Loan_solutions@yahoo.com
-James Reusing
1st Metropolitan Mortgage
0 votes Thank Flag Link Wed Apr 23, 2008
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