Is there a Conventional loan which would offer me a low interest rate with a 5-10% down payment? Looking for an approx loan of $570K.

Asked by Sh, 91320 Sun May 23, 2010

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Bonnie Sterl…, Agent, Simi Valley, CA
Thu Jun 10, 2010
Sh, Be sure that you deal with a local lender, especially on a low down payment program. There are some programs but I will tell you that I had a client who was recently quoted a 10% down on a loan amount over 417,000. When it got back from underwriting, after the buyer had paid for an appraisal and inspection, the lender, who I have great respect for, was told that the area, Moorpark, was considered a soft market condition and the buyer was asked to increase their down payment, 5% that they didnt have.

I have seen a few of your posts. It seems that you are desperately trying to fit your finances into a home that may be too much of a stretch for your FHA and lower down payment abilities. Perhaps your agent is too afraid to be the one to disappoint you by saying; pick something solid and good that you can afford. The market conditions are tough, and the lending environment is even more difficult. If you stretch and push, you may get disappointed in the end. OR, perhaps your Realtor has already said these things and you are hoping for other options by looking here for more answers.

You are smart to look and questions but in the end purchase within your means. Stressing out about qualifying and paying more than you can afford may not be they lifestyle you thought it would be when you saw the wonderful twinkle of a flipped home. They can be gorgeous.
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Barry Shapiro, Agent, Camarillo, CA
Sun May 23, 2010
Hello Sh,
The largest hurdle you have is to obtain a decent interest rate for a Jumbo. Loans over the $417,000 conventional loan limit are considered jumbo loans. Also, If LTV > 80%, PMI will be added to your monthly mortgage payment. Depending on your lender, closing costs may need to be paid out of pocket; the home must be your primary residence and a single family home; debt-to-income ratio is less than 30%; and credit score is over 720, or in the case of certain Jumbo products you will need a credit score over 740. Good luck in your quest!
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