I can't approve your loan, but your scores won't be a problem for FHA. There are other criteria they look at, debt, assets & income, but I would suggest you meet with a good full service local lender and apply. Once you have an approval you can start to consider your options.
FHA requires 3.5% down and is more flexible than other options may be for credit.
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That scenario sounds very odd. It's routine for a lender to periodically reevaluate escrow accounts. But escrow accounts don't cover principle or equity. They cover things like taxes and insurance--items that your lender will have to pay out of the account on a periodic basis.
For instance, let's assume your escrow accounts for taxes and insurance were way low for some reason. Now, taxes and insurance vary from county to county and state to state. But in a lot of places, taxes run very roughly 1% of the value of the property. So taxes on a $500,000 property might run roughly $5,000 a year, or $417 a month. (Again, I don't know about Dallas. But let's go with those numbers.) What you'd be suggesting--or what BOA would be suggesting--is that your monthly payments rose by $700 a month, or $8,400 a year. That'd be the equivalent--in many areas--to a re-valuation of $840,000. So a house that had been worth $300,000 is now worth $1,140,000. That's a mighty big jump.
On the other hand, the bank won't let you handle the escrow account yourself. The reason is that if you fail to pay, then the property could be lost. If you didn't pay your taxes, it might be seized by the county and sold for back taxes. If you didn't pay the insurance and the house burnt down, the bank's security--the property--would be gone. So they're going to insist on you maintaining the escrow account.
Still, something's definitely wrong. The first thing I'd suggest is look at the numbers that BOA provided. Try to figure out where that huge increase is coming from. Next, I'd go back to the company that handled the closing on the property. Ask them what's happening. Failing that, find a real estate lawyer. Still, the problem itself should be relatively easy to identify. The trick may be in getting BOA to correct the error.
If you/she can work on your daughter's credit, and turn it around into at least "remotely OK" then FHA financing could give you the option to go on with her with as little as a 3.5% down payment, but her credit still has to be in qualifying condition (your good credit can help, but her's can't be completely in the toilet). What exactly is on your daughter's credit making it "not that good" and do you know what her credit scores are?
You can also purchase as an investment property with 15% down using Fannie Mae financing & with a lender who has United Guaranty as a PMI provider, as they'll insure up to 85% LTV on a rental property - it may be tough to find that combination though. Fannie Mae HomePath financing, like has been pointed out in your previous question, can finance up to 90% if you can find a home at the http://www.homepath.com/ website.... more
You can try to negotiate the deposit amount with the builder, but the builder will most likely want some sort of deposit with your offer and after signing P&S just like any other seller. If you are requesting custom modifications to a home that hasn't been completed yet, they may require a higher deposit.... more
The short answer is NO. FHA has very specific rules, and are not very flexible. You must be at the same job for a minimum of 3 years now. The exeption would be: moving to another company or job in the same field, for the same or better pay.
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Incorrect, if you have an escrow account to start with you will have an escrow account for the remainder of the loan, unless you pay it off or re-finance your loan down the road (there will be addtional closing cost in doing so).
Your best option will be to do this correctly in the first place.
On an FHA you cannot waive escrow however on a conventional you can.
If your current lender cannot set up the loan allowing you to waive escrow; I suggest you give me a call.
I will be glad to work with you and have the escrow waived. Call me today.
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Lenders have tightened their restrictions on turning your current residence into an rental property. You are in the right area with 20% equity. That is the first requirement. 100% financing is out unless you are VA. There are 3% FHA and 5% Conventional products available with the right credit. You must have a lease agreement for the rental property before you can close on the new home. Now is a great time to move up and take advantage of the market and interest rates. Even if you choose to sell your current home, you save more on the buying end as you move up. But it sounds you are close to the requirements for converting your existing home that you should talk to a lender about the fine print. I have been dealing with a couple of clients who are considering similar moves. Give my lender a call and let him walk you through the details. Call Mark Potter at McKinney Mortgage Group. 975-542-9975 or email@example.com.
If you need a market analysis on your current house or would like an idea of the current lease rates, I can provide that information as well as help you find a great deal on a new home.... more