125k/yr annual salary 27k CC debt. $900 auto lease deferred student loans. salary grows every year by 7-15%. thinking FNMA 3.5% down

Asked by Matt Levine, San Francisco, CA Thu Jul 19, 2012

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Bill Mccord, Agent, San Jose, CA
Thu Jul 19, 2012
BEST ANSWER
Hello Matt. A quick clarification. The 3.5% down is using an FHA Loan. I suspect that with your income you could quickly get up to a 5% down (or even 10%) and save a substantional amount of PMI (Mortgage insurance required on loans with less than 20% down. FHA requires the highest PMI with 5% about 1/3rd less, and 10% with less than half that.
This is just a small example of things you need to learn more about before actually starting the Buying process.
Be prepared to spend a couple of hours discussing the whole process with a competent Agent. What you will learn will save you many thousands of dollars over the longer term.
Alternatively you could get your real estate education on the cheap, and learn what you need to know by trial and error.
Good luck,
Bill
0 votes
, ,
Thu Jul 19, 2012
Matt: You are qualified to borrow up to the max loan amount for FHA $625k.
The purchase price would be $650k.
You have enough for down payment and a portion of the closing costs.
As a mortgage banker, I can credit you up to $12k for closing cost.
Very doable.
Feel free to contact me via Trulia, we can talk. cg
1 vote
Mike Griffin, Home Owner, Virginia Beach, VA
Tue Aug 21, 2012
Go to a few banks and mortgage brokers. Do not let all of them run your credit. Simply ask for a Good Faith Estimate Form from each lender. This will show all there costs. Some lenders will be thousands cheaper than other lenders. With the FHA, it will require you to pay a PMI. One of the disadvantages over a convienental. You will need to know what you want in a house to determine how much you can afford.. I would always recommend to keep a year worth of mortgage payments in your saving account for emergencies where it could be used to pay for the mortgage for 12 months while spending different month on everything else if anything may happen that you least expect.
0 votes
Elena Talis, Broker, Palo Alto, CA
Thu Jul 19, 2012
Talk to a mortgage broker, get pre-approved and figure out how much of a house you can afford. I will be able to take it from there...
0 votes
Andrea Wince…, Agent, Milpitas, CA
Thu Jul 19, 2012
Hi Matt, what are you looking for and in what areas and price range? If you'd like me to email you some listings that match your search criteria, please contact me through my Trulia profile. Kind regards.
0 votes
I'd love a townhome. but am concerned w/ the PMI plus mandated monthly prop taxes. 2/2 Something similar to Whisman Townhomes in Mountain View. I'm an MBA student at SCU and work in Palo Alto. thinking 5/1ARM and doing quarterly discrestionary principal payments
Flag Thu Jul 19, 2012
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