What options exist for a first time buyer who has good income, excellent credit and is short on down payment?

Asked by Short On Cash, 07747 Fri Dec 7, 2007

I am single, earn almost $50,000, and a 740 credit score. I have less than $8,000 in the bank and finished grad school in June.

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Deborah Madey, Agent, Brick, NJ
Sat Dec 8, 2007
Hi Short on Cash,

First, great name that you chose for yourself. From the limited info her, it would seem that your prospects are bright. You will most likely be looking at a property that qualifies for conventional financing, and very likely, an FHA loan will work for you.

You mention that you finished school in June. That might mean that you have less than 6 months work experience. That might impact your interest rate, slightly. When you speak w/ mortgage pros, ask if you would qualify for a different rate after having a full years work experience.

You might find a seller who is willing to make concessions and pay toward your closing costs. If you have a contract w/ these terms, the property will have to appraise high enough to meet these concessions. There are also limits on concessions made.

There are first time homebuyer programs thorugh Wahcovia and Bank of America. There are charitable contribution programs, such as Nehemiah. Credit unions provide another good source.

Interest rates are low, and sellers are very flexible. You are in an excellent position. Keep as much of your 8K in the bank for a safety net, and add to that balance. Explore the suggestions made in this thread from all of the Pros. Best of luck to you. Congrats on completing school and embarking on your journey of your first home.
1 vote
Salt Lake Ag…, , Salt Lake City, UT
Fri Dec 7, 2007
FHA is the best, if you have less than 20% you will either pay mortgage insurnce (different then hazard insurance) or you will have a higher interest rate. With that said FHA has the lowest monthly mortgage insurance rate.

8 Reasons To USe An FHA Approved Lender
0 votes
Francesca Pa…, , Monmouth Cty NJ
Fri Dec 7, 2007
I've heard much positive feedback about the "My Community" home loan program although I personally do not have any experience with it. You may want to contact a mortgage consultant for details regarding this and other available programs.

Feel free to contact me by clicking the link below and I can provide you with 3 different local mortgage contacts.

Web Reference:  http://www.PatrizioRE.com
0 votes
Felicia, Agent, Town of Poughkeepsie, NY
Fri Dec 7, 2007
I am an agent at Century 21 Anita Ferri Realty in Poughkeepsie,NY. Century 21 has it's own mortgage company that offers 100% financing.Check with your local Century 21 office, of I can refer you to an office in the location you wish to move.Also,if you belong to crdit union, many of them have special savings accounts for first time home buyers. Our local cedit union matches a portion of the fund saved to go towards downpayments /closing costs.If you wish to discuss this further, Email me at felicia.ritters@century21.com
0 votes
Carol Andres…, , Pittsburgh, PA
Fri Dec 7, 2007
In which state are you looking to make a purchase? I can provide you a link for the first time buyer program available in your area, but I need to know which state you are looking in order to provide the correct link.
0 votes
Kent Simpson, , 85718
Fri Dec 7, 2007
Have your lender take a look at some of the offerings from Fannie Mae--there are several programs that might allow you to get 100% financing. Another advantage of using Fannie Mae is the fact that they offer discounted mortgage insurance (a nice way to keep your payment down when you have less than 20% to put down!).
0 votes
Gail Hiebert, , KCMO
Fri Dec 7, 2007
Well really, short on cash, your prospect are quite good. I dont know where you're from, but I would advise you to seek out a reputable lender (bank) in the area that offers the FHA 3% down loan program, or a down payment assistance program. Overall, you sound like a good prospect for financing, but of course, it would depend on the pricing of housing in your area, as well as a lender who can help you get the right program. Hope this help.s.
Web Reference:  http://www.taxcats.net
0 votes
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