There are some 90/10 loans out there. I have seen them on a few past transactions. My web site has some lender references. Give them a call and if not them, keep trying some of the smaller banks, not the big ones like Chase/BOA etc.
The financial strength of the association/%owner occupancy can also have an impact on getting the loan and some condo buildings, particularly the smaller ones. might be willing to go FHA. The process has been revised and is much easier and faster.... more
The best thing you can do is to meet with a local and trusted mortgage broker, they can prequailify you at no cost, they will look at your credit plus your financials and let you know if there are any programs that you may quailify for given your situation
Please see my blog for tips and advice on how to get a mortgage... more
there are lenders from what am seeing claiming to do fha loans down to 600 fico scores. Ultimately your overall profile and debt structure will determine your eligibility. Having a CH13 that has been completed is a good thing and fha will take that into consideration depending how long ago the payoff and initial ch 13 filing was.... more
Fannie Mae & Freddie Mac financing just require a 620 credit score for their programs (including investment property) - so your scores would meet that level. What is on your credit will factor in to being able to qualify though, did you have late payments? Collections? Charge-offs? Bankruptcy? Have you been working on your credit? With investment properties typically any collection or charge-off exceeding $250 needs to be paid.
Gross income, not net income, is what qualifies. Not sure how much you have taken out for taxes, but assuming 25% then perhaps your monthly gross is $5k. Please clarify.
When you buy an investment property, your current housing payment factors into you being able to qualify for the mortgage. So if you are renting in San Jose then whatever your monthly rent amount is will be included. Are you renting? How much is your rent?
Assuming you live rent free, and your monthly gross is $3.8k/mo, then your debt ratio looks just fine on a $120k sales price in Chicago with a 33% down payment. If you paid $1,200/mo in rent, and made $5k/mo gross, then the debt ratio is getting to be on the high side, but still within qualifying range.
In addition to your down payment + closing costs, you should have at least 6 months of the proposed monthly housing payment in "reserves" (savings, checking, 401k, IRA, stocks, bonds, etc.) still around after you close in order to help qualify (you are likely going to need some compensating factors for your credit score - having a 30%+ down payment certainly helps, but reserves are another way to help).
With investment properties, for decent rates, at least a 25% down payment is recommended (if you had a 660 score you can get away with 10% down if you find a property at http://www.homepath.com & using Fannie Mae HomePath financing)... putting more money down helps alleviate the impact your credit scores would have on your interest rate, but would lessen the amount of money you'd have in reserves. It may be that 25% down + extra reserves would get you qualified, whereas 33% down and less reserves would not. Your loan officer will be able to play around with the automated underwriting system (computer program that analyzes risk on mortgage transactions) to determine what exactly you'd need to do in order to qualify given your current credit situation.
We lend nationally/all 50 states, I do quite a bit of financing in Cook County, so if you aren't already working with someone and would like help, I'd be happy to.... more
Your mortgage statement has a contact number to call. Just tell them you need to speak with the modification department. However, unless your situation has deteriorated since the modification, your request may fall on deaf ears.
Jack Gillis, M.B.A., J.D. │ Realtor®
Jack Gillis Realty Advisors
United Real Estate, Broker
5430 LBJ Freeway | Suite 280
Dallas, TX 75240
Email: Jack@JackGillisRealty.com... more
I do not understand the problem. If the banks want it I am sure it's good for the country/economy/real estate market. Why wouldn't it be?? They are always right! Look how much money they always make.... more
Yes someone can co-sign for you - having a co-signer with a 650 score can make your overall loan situation look better to a lender. But someone with a 650 score doesn't make the person with the 540's score irrelevant, all borrowers on the loan must meet the score & credit requirements. With a score of 540 and buying as your primary residence, you would only have FHA & VA financing available, if you are not a Veteran then you would be looking at FHA financing, which with less than a 580 score you need 10% down, so your 30% down would be fine.
Owning the other land won't improve your chances of qualifying, and may actually hinder them, as if you own the land then the property taxes on it (which I am sure aren't much) will need to be included in your debt to income ratio. So it'd be better to get it afterwards.
All of the other questions I asked you would still apply, and with 540 scores instead of 640 scores, what is on your credit and when it happened is even more important.... more
The short answer is, no as far as "normal lenders go. A "hard money' lender will do something like this, but not at rates you see from banks, and not with terms that give you any latitude if you have a problem with repayment.
No credit issue is beyond repair if you pay your bills and take care of past debt, including student loans.
Just remember this type of lender WANTS you to default.... more
Does your pre-approval letter say you can buy a house up to $180k or a loan up to $180k? If it is the later, then you can as long as you put $19k down.
Either way, talk to your lender. They are usually a little conservative just in case interest rates go up a little or you have a few last minute expenses. They may be able to get you in a little higher, especially if rates tick down a little.... more
it's tough to answer these types of questions because every situation is different, but its bit high in my opinion. If its a quality loan officer then it's not too crazy, but make sure you feel confident in the loan officer if you decide to work with him and pay that amount of money.... more
For a condo perhaps a few hundred. For a house/2 flat perhaps $1500-2500 depending on various factors. If you have a condo you just need to insure the interior of the unit. The association insures the common areas and you pay for it as part of your monthly assessment.... more
I would encourage you to speak with your lender regarding getting cash back for repairs. It depends on the type of loan you are qualified for. You can also ask the Seller to pay for some of your closing costs to free up additional money to get repairs done.
Best of luck,
David Jaffe-SRES, CDPE
Realtor Coldwell Banker... more
Hi, Yes there are. There is a rehabbing loan available through the FHA called a 203k loan. This loan has two types one for 430k and under and one that is larger then that and requires a HUD appraiser to view the property along with contractor estimates, etc. Your best bet is to speak with a reputable mortgage lender to get all the details and discuss your options. conversations like this don't cost you anything but save you from alot of wonder ;o).
Licensed Associate Broker
Accredited Buyer Representative
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William Raveis Legends Realty Group
Technically the one year starts over. Had the refinance been completed before you were given the word of the job transfer then you should have been OK. Knowing of the transfer and withholding that could be considered fraud. The optimal word here is "could be" not will be. At this point let your conscience be your guide and error on the side of caution.... more