Question Details

Robin, Home Seller in Rocky Hill, NJ

My husband and I have a high combined income (150k), but somewhat poor credit due to unforeseen circumstances

Asked by Robin, Rocky Hill, NJ Thu May 15, 2008

in the past. In todays market, would we still get a mortgage with less then 20% down?

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Honestly I would agree with most of the comments thus far and looking into FHA financing. Everyone knows already with the crash of the subprime world it is very difficult to get 100% financing on certain loans like yours. FHA is pretty much the new sub-prime as of now. The good thing is they have great rates and deals. More consumers should take advantage of it...

Additionally, I would look into state grants, bond money, etc. There is alot of state backed assistance out there and it would't hurt to look into it. For example I closed a loan today for someone probably in a similar situation and I was able to offer them 100% financing with a state backed program. And I do them all the time. It's really become my main focus now is FHA and working with first time homebuyers. I hope everything certainly works out for you!

Brent Bester
Mortgage Professional
0 votes Thank Flag Link Thu May 15, 2008
Save your money. Next year, you'll have the 20% down payment and houses will be even cheaper.
0 votes Thank Flag Link Thu May 15, 2008
Hello Robin,

Phil is correct, with the new FHA limit at about 417K, you should be able to qualify for a home if you meet the basic guidelines. An FHA loan may grant you the opportunity to actually get into a home with Zero Money down, the way this works is that we have the Seller contribute your down payment. I just closed on a property with a client where they purchased a home and only paid $164 at closing. Your proabably thinking how this was possible? The deal was possible because they purchased a new home from a builder and the builder contributed 15K towards their closing costs, which included a down payment assistance program. The Buyer had an earnest deposit of 5K and at closing they received a check back for $4836.00. As long as you have the right team of individuals guiding you through the process, you will be fine. The link below will give you more information about the down payment assistance program, feel free to read through it.

Do you know your credit scrore by chance. Many banks have limits on Fico scores and I have seen it to be around 580. An Account Executive from Taylor Bean Whitaker came into my office today and explained they are taking fico scores below 580, however there would be a higher interest rate for those loans. I hope this has shed some light on the oppourtunity you have for homeowership. Please let me know if I can be of service.

Good Luck,
Ken Herrera
Century 21 Infinity
Web Reference:
0 votes Thank Flag Link Thu May 15, 2008
go Fha,They just raised the loan amount and go for the buyers assisant program,call me for the house warming party!!
0 votes Thank Flag Link Thu May 15, 2008
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