Financing in Minneapolis>Question Details

Heather Totin, Home Buyer in Erie, CO

What are the best Home Mortgage Options for Primary Residence $460K with 5% down and a 800 Credit and $11K monthly income in MN?

Asked by Heather Totin, Erie, CO Sun Oct 28, 2012

(Oct '12) I am trying to purchase a home that is $460K and I want to place 5% down. I have a 800 credit score with ~$11K monthly before tax and just a $200 college loan for monthly payments (I have had two other houses that I have already sold over a year ago)... Is it possible to get two loans or a Jumbo loan with these parameters? Help

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Thomas Simonsen’s answer
It will be very difficult and expensive to do just 5% down. Have the sellers pay the closing costs, negotiate a price down where the mortgage is no more then $417,000. for a conforming loan. Also I might suggest a 5/1 or a 7/23 loan with a lower interest rate depending on how long you plan on being in the home. If it is eight years or so then the 7/23 is my suggestion for the best loan and the most flexible. Anything less in time is money in the bank. Let me know if I can help you locate your perfect home here in Minnesota. Tom
0 votes Thank Flag Link Tue Oct 30, 2012
Ken Graczak is leading you down the right path (and I personally know him to be a fantastic loan officer and a great guy). The best way to structure this loan is with a first mortgage of 414K (90 percent) using Single Premium Financed Mortgage Insurance (see web reference below) and a second mortgage taking you the rest of the way to 95% financing.

This transaction structure will take more time to close than normal ones so make sure that you have adequate time in your purchase agreement to get the deal done.
0 votes Thank Flag Link Mon Oct 29, 2012
Just curious, Heather, why aren't you contacting a few local lenders about this??? They will give you better answers than anyone here.

As for whether you would qualify, on the face of the information you've provided, I'd say why not. The lenders will ask for more details in order to confirm your info because that's what underwriting will hinge on.

Good luck!
0 votes Thank Flag Link Mon Oct 29, 2012
If you want to contact a lender directly off of Trulia I have pasted my top loan officers' link as a way to contact him. He is one of the few lenders I know that take the time to help people out on Trulia, and he has an active profile.

I think Ben really hit the nail on the head! TCF might be an option....I have heard they have the most flexible parameters for 2nd liens if you do not just go Jumbo, but I have never used them for this situation so I can not say it for certain.

Worst case go super local with a bank (the ones you will never hear of online) or a credit union. If you have already sold two houses you should have a realtor you like at this point. Part of our job is having good lender contacts, and in your case finding the lender that meets your needs. Maybe ask them too?

Good luck!

0 votes Thank Flag Link Mon Oct 29, 2012
The conforming loan limit is $417,000. The options, as you've noted, to borrow above that would be to get a "jumbo" or a second mortgage to cover the difference. However, both of those options, from what I have see of late, require 10% down. You may find a local lender or bank with which you have a good relationship that would make a second mortgage over 90% of the value, but that's the only option other than more money down. You'll probably find a search for that lender to be difficult, if you or anyone in this thread finds that option, let me know!
0 votes Thank Flag Link Mon Oct 29, 2012
If you are looking for an excellent source for a mortgage like you described, call the best mortgage consultant I know...Kevin Doyle, at Mortgages Unlimited. His number is 612-701-4888. I'm fairly certain that Kevin can answer any questions you might have and he'll help you find the best possible option for your situation. He has multiple sources for loans, including local funding.
0 votes Thank Flag Link Mon Oct 29, 2012
I assume you have a purchase agreement and a licensed agent Most agents, myself included, are knowledgeable about finance/ You will see the answers already provided by my colleagues, and possibly, by your realtor as well. Get together with a good mortgage officer; if you want to know my favorite and most trusted, I will gladly refer you. You will be in good hands and meet your financing needs for this home, preserve your assets, and make an informed decision. Good luck! liz, 612-986-4105
0 votes Thank Flag Link Sun Oct 28, 2012
At $460K you will need to go conventional. That would be about $60K above the FHA limit. I have several loan officers I work with that can help you find the best product for your needs.
0 votes Thank Flag Link Sun Oct 28, 2012
If you can get the loan down to $417,000 you will have a better loan and more options. This would require more than 5%.
0 votes Thank Flag Link Sun Oct 28, 2012
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