I don't do financing in Boston but I can lend you some advise form California. With 5% down here that would still be an FHA loan. I'm pretty sure its the same in Boston where conventional loans start at 10% down. There are rumors though here that 95% should be available soon so maybe Boston is ahead of the curve.
A GFE is provided with a loan commitment. I would ask a broker there to list their fees in an email that way you can compare a few.
There are two debt ratios. There is the debt to income ratio and the housing ratios. If you would like me to tell you what your is I can help you. We will want you to be under 45% to start at a minimum. The goal is to get you to the lowest possible so you can become less risk to a lender!
Please feel free to ask me any questions.
You can find me in Google .... more
You will have a difficult time finding a lender that will not have the six month seasoning requirement. Your best option may be a local bank where you already have contacts and know the people. I will ask around and see if any lender will do it and get back to you with any positive outcome.
I haven't heard of anything other than perhaps company policies on the transfer of large sums of money and the federal requirements to verify the ability to do business with certain blocked persons, enterprises etc. Large sums of money are a concern for any bank due to the importance of verifying the source of the funds & the time it takes. With counterfeiting so easy understandably anyone looking at an out of state check draws concern for it's validity. This is where the wiring of funds is more secure, documentable & researchable by federal & local authorities & parties to any transaction.
With any check drawn for escrow it could take up to 20 days for all the routing to verify & certify the funds to be transferred. If the source of the funds for some reason puts a hold on the funds it can cause a cascade of problems down the chain. That might be one reason why companies set up policies to operate by to make sure risk is reduced as much as possible and to make it as fair and equitable in accordance to local, state, federal laws and the interests of their clients. Escrow companies aren't as common here in Massachusetts but in the rest of the country I've found they're common and they are a business and need to reduce their risk and maximize their profit potential. Whenever you are dealing with large sums of money and different jurisdictions and laws you should absolutely consult with a qualified attorney to best advise you on your legal options , local customs and how to best protect your interests when it comes to contracts and local laws.
Hopet that helps,... more
Hello- I'm not a CPA- but I would say Not. That wouldn't make sense that the IRS would allow you to take a tax deduction (or credit) on something that you did not pay into at all.
I've always heard and said that you can deduct as REFI/ loan expenses points or other such mortgage company fees that YOU pay. What does your current borker/ lender say? Call him.
Let me know if I can help at all. Thanks, and good luck,
Ken L.... more
Generally with Coops there is what is called a blanket mortgage and depending on how the original corporation was set up, the blanket mortgage covers a portion of an individuals mortgage. So it is likely, again depending on the building, you will have to get your own mortgage. The asking price should include the portion of the blanket mortgage. So as an example if the asking price is $500K and the blanket mortgage on that particular unit covered $100K, and you had a downpayment of $50K you would have to get a mortgage for $350K. Also understand there are certain lenders who will write a mortgage on coops and you will have to qualify for the entire amount meaning... purchase price $500K; downpayment $50K, entire mortgage amount $450K. The lender will just want to make sure you are not in over your head.
Hope this helps.
Jessie Cuddy, Realtor
Boston Bayside Properties
There is quite a bit more than just the loan amount that goes into what your qualifying rate will be. The two main factors are:
Your ability to repay the loan
Your willingness to repay the loan
Your ability to repay a loan is determined by verifying your current employment, total income and current assets. Generally, mortgage companies like to see that you've been employed at the same place for at least two years or that you have been in the same line of work for a few years.
Your willingness to repay a loan is, in part, determined by examining how you will use the property you're planning to buy. For instance, will the property be owner occupied, non owner occupied or an investment property. In addition, they will try to determine your willingness to repay a loan by looking at your previous financial commitments and how you've handled them. They will gain this information by looking at your credit report.
Also your qualifying rate will be based on your down payment. Obviously, the more you are willing to put down the better your qualifying rate will be.
Hope this information is helpful.
To get an exact quote I would encourage you to speak with Christina Longo
81 Newbury Street
Boston, MA 02116
978 886 9359
617 236 7764
If you have not yet put in an offer please call me to discuss. Condo Domain is an exclusive buyerâ€™s agent and due to our business model we are able to share our commission with you!!
Real Estate Consultant
319 A Street 3rd Floor
Boston, Ma. 02210
Most lenders offering FHA loans today require a minimum FICO score of 620. A handful of lenders will go down as low as 580. If you have only two scores, it will be based on the lower of the two. If you have 3 scores, it will be based on the middle score.... more
You need to ask an accountant or CPA a question like that. There are several tax implications that can occur doing one and not the other. For the most part, Realtors and Loan Officers are not licensed to advise you on this information.... more
Hi Karen, I've done some of these loans. Verify with the mortgage lender/broker on the buyer's credentials and make sure that they've run the qualification against a new condo conversion. More often now, a new condo conversion has lenders in fits.
Your best bet to get the best deal is to do a little bit of both. Go to a banker and a lender. Compare offers. See which one fits your goals. To get free quotes, you can fill your infomation out on sites like lending tree.com or lowermybills.com. Or you can contact several bankers/lenders on this site. All would be more than happy to give you a free loan quote. Good luck and happy house hunting!
Sr Loan Officer
FHA is changing the guidelines on this putting it in the hands of lenders. There are a laundry list of items:
-no 1 entity can own more then 10% of the units
-90% of the units have to be sold (tough with a new condo project)
-no more than 10% of the loans in the project can be FHA
-no special assesments pending
-no legal action against the HOA pending
-reserve fund separate from operating account
As of Oct 1st you will no longer be able to get FHA spot approvals on condo's, the whole building will have to be approved by confirming the above and more.
...search around www.hud.gov and you are bound to find some more helpful info.... more
Hello bbox- This is a tough question. Can't really post a true answer.
Bottom line is that in October FHA is laxing their guidelines and restrictions for condo projects, to make it more in line with Fannie/ Freddie requirements (conventional). So, my guess is that pretty soon both will be close to the same.
FHA has something called Spot Approval which makes it easier.
Fannie has a limited review offering, which can make it easier on their end.
There are many factors. If it is BRAND new (new construction or a conversion) then it is more difficult to get it approved.
If I can answer any specific questions, with the address you have in mind, please contact me. Thanks, and good luck,
The best thing to do is work directly with a lender. It's never too early to get their professional expertise on your team. A mortgage broker, mortgage banker, credit union are the 3 I suggest to my client in order to get a variety of options. Any of them can do conventional vs. FHA loans in a comparison table. Any loan with less than 20% down is going to charge Private Mortgage Insurance (PMI). This and any other cost associated with the loan will be on this table.
Once they have your income, credit, and asset statements, they can take your qualifications and give you interest rates for each scenario.
Remember that the less you put down, the more you are actually borrowing and the larger your monthly payment will be.
How do you find a good lender? Work with a real estate agent. They see many transactions and the lenders that get the job done well. Also ask parents, siblings, and friends who have people they work with. Finally, do no overlook your own finance relationships at banks and credit unions.... more