Found A Home!

Asked by Ronnie, Philadelphia, PA Mon Aug 11, 2008

After about a month of searching, I've finally found a home I like in Northeast Philadelphia. My problem is that I'm trying to go through BofA for my loan, but they're telling me that I am required to have at least a 15% downpayment, which I don't have. I still have to purchase a car and have an emergency fund, so the most I could do, with the house current;y at $174,900 is 12%, and that's even pushing it. My credit score is well above 600, so is there any way of getting out of this high percentage requirement? Please Help.

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Terrence Cha…, Home Owner, Allentown, PA
Mon Aug 11, 2008
Don't go through the banks. Find a good mortgage broker. Look for FHa and first time home buyer programs (if you are one). Also, don't get a vehicle loan until after the purchase of the home. This may actually harm your credit.

Banks will have you jumping through many hoops...
3 votes
Chris & Step…, Agent, Philadelphia, PA
Mon Aug 11, 2008
Consult your buyers agent to get referred to another lender to see if there is another program that can help. This work probably should have been done ahead of time so there would be less obstacles but it could still work. Contact us via our site below - we answered your other questions as well. Solutions are out there - you just have to know where to go.
2 votes
Drew, Home Seller, Pensacola, FL
Mon Aug 11, 2008
I went with a local credit union and just closed in the beginning of july.. 5.19% interest with 5% down in a stable market and 10% in a declining market. There were income restrictions on this but I don't think I could have beat this deal since I didn't qualify for FHA since I already owned a home under FHA. Shop around!
2 votes
Stacey & Big…, Agent, Feasterville, PA
Mon Aug 11, 2008
Congratulations Ronnie! I would call a mortgage broker since they can shop your loan around to several different banks and get you the best rate.
2 votes
Fred Glick, Agent, Mountain View, CA
Mon Aug 11, 2008
It depends on many factors. I am a mortgage broker, so i do not have one set of guidelines.

Call me at 215-852-4469.
Web Reference:
1 vote
Jeremy S. Hi…, , Cherry Hill, NJ
Mon Aug 11, 2008

FHA only requires you to put 3% down. Your debt to income ratio will still have to be within the standards. If you know your monthly debt I can let you know you qualify and at what rate. I'm in the office now 856-685-1651.
1 vote
Sj209, Both Buyer And Seller, California
Mon Aug 11, 2008
Call Wells Fargo or another lender. Ask about FHA. Not sure why they want 15%, sounds high.
1 vote
Phong Lam, Agent, Philadelphia, PA
Tue Dec 1, 2009
Hi Ronnie,

How are you? Is the reason why the lender is asking for a large down payment because of your debt-to-income ratio is less than the standard guidelines? But that is kind of high for a mortgage loan. Are you a first-time homebuyer? If so, I would strongly recommend you contact an FHA lender because the minimum down payment requirement is only 3.5% and it is a Federal-insured loan. Below is a summary of what the FHA loan is:

FHA (Federal Housing Administration), also known as HUD (Department of Housing and Urban Development). The Federal Housing Authority is a federal entity that governs the FHA mortgage program, which is a low down-payment mortgage program with flexible credit and qualifying guidelines.mortgages. Here is a website that you can find out more on FHA Loans:

It gives you everything you need to know about FHA there. Buyer's assist is when you do not have money upfront to cover some of your closing costs, then you can factor that into your offer as a part of your mortgage. For FHA, you're allow to get up to 6% seller's assist with 3.5% downpayment (at least 3.5% of purchase price has to be your funding to bring to settlement).

If you have any other questions regarding loans or helping you find your next home, please feel free to email me at or call me at (267) 918-1880.

Thank you and I'm looking forward to hearing from you soon!

Have a great day!

Phong Lam
CENTURY 21 Advantage Gold
2010 Oregon Avenue
Philadelphia, PA 19145
Business: (215) 465-1400, ext. 508
Fax: (215) 336-7793
Mobile: (267) 918-1880

P.S. I would like to pass along this good news that was officially put into writing by President Obama recently in regards to the extension of the $8,000 First-Time Homebuyer Tax Credit. In addition to that, it is now expanded to current homeowners as well. If you or anyone that you know were looking for a house but were discouraged to buy because the expiration date of Nov. 30th was approaching fairly quickly, there is no need to worry anymore because it has just been extended until next year!
0 votes
Robert LaPie…, Agent, Blue Bell, PA
Fri Nov 27, 2009
I would try and go FHA which in most cases only requires as little as 3.5% down payment. I am a direct lender through Wells Fargo/Prosperity Mortgage. I would be happy to talk with you and see is there are any other options available..Just curious, did they give you a reason why you need such a large down payment? Is it due to carrying too much debt? You can also fill out an application on my website below and I'll take a look at the numbers for you..Thanks, Robert LaPierre
Prosperity Mortgage
Independence Hall
601 Walnut Street
Philadelphia, PA 19106
Direct line 215-409-6937
0 votes
Em, Home Buyer, Philly
Tue Aug 19, 2008
If you are a first time homebuyer....... Call Commerce Bank. They have a first time homebuyers plan which you may qualify for, and only have to put 5% down + closing costs of course. The interest rates are nice too. It works similar to FHA, but they have thier own rules and regulations, etc. Call, it won't hurt and it certianly could help.
0 votes
Edmund Choi, Agent, Paoli, PA
Tue Aug 12, 2008
Why not structure the transaction in a different way. 1st, inquire BoA of more conventional options, then approach other lenders for comparison; request a GFE from each lender. You may discover that downpayment requirements will differ from lender to lender and from product to product. Next, restructure the transaction so that you are getting a Seller's Assist to defray some of the soft costs that will accompany your deal; this may actually result in lower costs than the 'No Fee' loan.

Your Realtor should be guiding you through this aspect of the transaction.
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0 votes
Michael D De…, , 18969
Mon Aug 11, 2008
Most Lenders have tightened their guidelines.I have several Lenders with different criterea. I would be glad to shop your loan around and see if anyone else can do better. Feel free to contact me. The best of luck to you!

Michael D Delp
Mortgage Pro
4802 Old Bethlehem Pike,
Telford Pa. 18969
Ph- 215-453-1025
Fax- 215-453-1012
Cell- 610-762-0318
0 votes
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