how much of a down'pay. do i need for my credit score, and income not to be a factor in get'n a mortgage?and..
Post date: August 8th, 2011… and can i still get a low mortgage rate like a person who has good credit? Can use the equity in home that will be gained upon purchasing it (i am get’n a 200k home for 150k)? can the seller somehow contribute to my down payment- if they wanted to help me buy their home (ie: equity sharing arrangement)?
- Tags: low mortgage, mortgage rate
« my credit score is 501? Credit Score of 725, should I be able to qualify for the lowest mortgage rates? »
August 8th, 2011 at 5:53 pm
lenders use the lesser of the two values. (appraised value and purchase price)
the only way you can receive the equity in the home is if it is from a blood relative and they ‘GIFT’ the equity to you.
FHA has good rates…and has 2.25% down payment requirement…..rates are 7% or lower.
August 8th, 2011 at 5:53 pm
20% down or look for properties for sale by owner.
See if the owner will finance the mortgage or see if you can do a lease with the option to buy.
August 8th, 2011 at 5:53 pm
Just because some one says it’s a $200K , don’t make it so AND
As soon as you get it for $150K , the house value has dropped 25 % .
That is NOT equity , Equity is cash you have paid ,
Not some fantasy number cooked up by sales people .
For a mortgage , a 20% down ( that would be $30K cash) would give you a better chance if your FICO sucks , but they will not ignore it .
And most the lenders who ignore income are in bankruptcy themselves ,
So it might be tough to get a loan from them .
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August 8th, 2011 at 5:53 pm
You probably don’t need a down payment at all. I bought my house with no money down, financed 100% of the loan and the seller paid my closing costs. The only money I spent was the lawyer’s fees at my closing. And the house appraised at more than what I bought it for, so I came into the situation with a few thousand in equity already.
August 8th, 2011 at 5:53 pm
Third time you asked the same question. Do you expect a different answer?
August 8th, 2011 at 5:53 pm
If you put a downpayment of around 30-40% of the sales price, then your credit score and income should not be a factor in you getting a mortgage. You might not get as low of a rate as someone with perfect credit but your income and credit would not be a factor.
August 8th, 2011 at 5:53 pm
Kate is right about the equity. I doesn’t really sound like you understand the mortgage you are buying. Please do not buy this mortgage unless and until you understand it. You may need to get a second opinion from another mortgage broker. In any case, your broker should be able to explain the entire loan to you. If the broker doesn’t seem to understand then don’t buy the loan from him. This is way too much money to spend without understanding what you are getting into. I doubt there is a bank out there that will loan you more that the house is worth. ie: 200k on house worth 150k. In most cases the seller can contribute to your down payment if they are inclined. There is also the closing costs to consider, you will more than likely need between 6k and 8k to close. Has your lender spoken with you regarding closing costs and the difference between that and the down payment?
August 8th, 2011 at 5:53 pm
If you are willing to get a hard money loan than credit doesn’t become a huge factor. Hard money lenders usually are more interested in LTV (Loan to Value) what you owe compared to what the house is worth. If this ratio is under 70% than there is a countless number of investors willing to loan to you at 9-10%. Once you make your payemtns for 6 months, your credit score should improve and you can refi with a traditional lender. Any more questions please feel free to conact me at mohrloans@yahoo.com