Hi, I'm planning to puchase a home by Winter of 2009. Assuming I have good credit, a FICO score above 620,

Asked by Ricky, 90745 Mon Apr 27, 2009

make roughly $75K with $1K in expenses, no college/credit card/car debts. Generally speaking, will I be able to get a loan WITHOUT having to put yearly taxes and home insurance onto my my mortgage? I'm looking mainly at a 30 year fixed rate loan with 20% down on a $220K home. Thanks so much, all the best...

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Benny Chavez, Agent, BELLFLOWER, CA
Wed Apr 29, 2009
RICKY sounds like you've been reading your books or getting info from a lender.... all I see are green lights everywhere for you!!! good luck with your purchase Winter of 2009 might cost you $20k in price increases compared to summer 2009!
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M.D.J, , Los Angeles, CA
Mon Apr 27, 2009
No, you will not need to have the taxes and insurance collected monthly on a conventional loan with 20% down and credit scores are not a factor for an escrow / impound accout.
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Dyanna, , California
Mon Apr 27, 2009
Let's also assume that the guidelines don't change any more. Remember, the increase to the FICO is changing every few months.
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Luke Allison, , Asheville, NC
Mon Apr 27, 2009
A decision on an "Escrow Waiver" is going to be made from lender to lender. You definitely cleared one hurdle by putting 20% down but the exception will also need to be made based on the credit score, assets, Debt-to-Income ratio, etc.

You will need to note, however, that the monthly tax and interest amount will need to be used to qualify for the loan regardless of if you pay it monthly or not. I do understand why you would want to do that though. If the tax assessment is based on the prior sales price then obviously you would get stuck with a higher tax assessment until the county revises them based on the new sales price. I heard they are working on a way to correct this to try and help more people qualify - but you know politics.

If you would like to qualify and see about the escrow waiver, please feel free to call me. I should be able to get an answer within minutes based on what the system says. Call me if you have questions.

Luke Allison
Bank of America Home Loans
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