I am looking to buy my first house. I have been repairing my credit since Auust and have gone from 510, 515, 551 to 768, 787, 750. I got these results by working my tail off, paying off some debts (PFD) and writing a lot of letters. I know my FICO scores are good. I have about $300.00 in credit card debt which I pay off every month (use cc for lunch and train tickets to work). I also have about $230.00 a month in student loans. I make $50,000.00 a year and have been @ the same job for about 15 months, although I have been in the same field for 5 or 6 years (I am only 29). I just got a raise although I am not sre how much it is yet. The big problem I face is that I can't come up with 20% to put down. I want to buy a multifamily house for about $300 - $350 and I don't have $60,000.00 to put down. I do have about $10,000.00 that I can fully doccument how I saved by putting a big portion of each check into a small cap fund every two weeks since Nov 04. Anyone out there know if it would be possible for me to get a mortgage with a decent rate? Any help appreciated as I am realy sweating this one!
Yes, it's definitely possible. I've worked with multifamily purchases...if you're going to live in it, you still get the owner-occupied rates. If you want to discuss further, you can click my name and e-mail me there.
I bought my home for a bit more using an adjustable rate loan. You may also want to look into 100% financing or interest only loans. Typically, you'll pay a little more interest on these loans but if it's the difference between owning your home and renting, it's well worth it, my friend. I simply took the extra tax refund money from the high interest and paid off some of my principal once per year. Lastly, the adjustable vary in length but the key is to either plan not to stay in the home that long or ensure you can get a short "prepayment penalty" or no prepay at all. This will give you flexibility to refi. into a fixed loan if you need it. If you are a novice at this stuff as I was, I suggest reading all you can online and check out bankrate.com. Good luck.
It's also important to find out if you're getting a "soft" or "hard" prepay. Hard=can't refi nor sell without incurring a substantial penalty. Soft=can't refi but you can sell it. If you find out you've "bitten off more than you can chew" you at least have the option to sell.
How many units are you thinking about and what state are you looking in. Some states have pre-pays, other do not. This sounds like an easy deal to get done but need to know a bit more...
I am looking in an 'underperforming economic area' of Massachusetts. I would like a fixed rate becasue I'm not a gambling man. My banker (credit union) told me with my income and FICOs I can get a good mortgage but I would need 3% down. That means I'm looking at 10k. In a perfect World, I would like to put between 5000-7000 down.
It all depends on how many untis you are looking for. 100% financing with a 3% seller assist is a very easy scenario for you with those scores.
I'm looking at a three unit building that will be owner occupied. I would like to do 2% down becasue the building I am looking at is about 350,000. The credit union I have contacted me said I need 3% but also said up to 3% is allowed for closing costs. I don't know if he is talking about a 3% second mortgage that will be used as a downpayment or something else. He did ask me to come in for a meeting (I told him I only had 5k) so maybe that's the best thing I should do.
It appears you can get into this as an 80/20 at 100% financing that would allow up to 6% seller paid closing costs. Email me for details and faster response. You have good scores and are running this as a primary residence... I see no problems with a no money down scenario while keeping your reserves.
Can you explain what the 'seller paid closing costs' means? Does this mean the seller pays the closing costs and if so do I have to get them to agree to this? Does this mean we increase the selling price of the house so that technically the seller pays the closing costs but in reality I am paying them in the mortgage?
Yes, Lets say the property appraises(or values) at 300k and you decide to make an offer of 290k. You write up your offer at 300k with 10k back from the seller towards closing costs. Most sellers have little or no issue with this. Your loan amount will be 300K, so yes, you are financing in the closing costs.
