Almost Pre-Approved

[GovtGal]

I heard back from my LO yesterday.  I recently paid off a bunch of debt and I was concerned that it might not have hit my FICO score yet.  I turns out I was ok.  My scores were 681, 717, and 733.

I was pre-approved (assuming my documentation supports what I reported) for $220,000.  The loan is a conventional loan with a down payment of 5%.  I was able to get a rate of 5.125% with 1.4 points.

I have a question though.  One house that I have my eye on is listed at $239,900.  My father discussed posibbly gifting me the difference.  I know there are requirements on down payment gifts but I'm not sure what those are.  Also, my dad mentioned the possibility of loaning me some money so I could put 20% down and avoid PMI.  Are there rules against accepting a personal loan for purchasing a home?

[happy0510]

Might I ask what your annual salary is, location, and whether you are a first time homebuyer?

I am getting gifted my DP as well. I would like to know the answer to this too.

[GovtGal]

My annual salary is $62,580, my location is the San Francisco Bay Area and yes I am a first time homebuyer.

[happy0510]

Wow...congrats on your conventional loan!  That's great.  I am in Los Angeles.  Are you looking at a condo? That seems awful cheap!  Have you guys gone down that much up there?

[GovtGal]

I'm looking a houses in the suburbs.  There is no way I could afford anything in the city...even with the drop in prices.

The homes I'm looking at are 5-10 years old.  The prices have dropped significantly.  One house I'm particularly interested in is listed at $195,000.  3  bedroom/2 baths, 1492 sq feet.  It was built in 2005 and sold for $471,000

[happy0510]

Good for you.  Yes, same thing down here.  I'm interested in a house for 230K. Sold for 495K in 06.  It is not in the best neighborhood however.  I think I will have to put out at least 350K if I want something decent in a decent neighborhood.  Not Hollywood or Bevery Hills though!! Ha ha ha

[WannaHouse]

Gifting you money is fine. They will have to sign a paper stating that it IS a gift, and there is no intention of a repayment.

[rivernh]

It's worth mentioning that just because a home is listed at a certain price, doesn't mean you can't get it for less.

I went after the house I really wanted that was a bit out of my price range, and came to an agreement!   My maximum was about 285K .  It was listed for 305K, having dropped down gradually from 339K to 305K.  I offered 270K and we settled on 280K, 5K less then I was willing to pay for it!   The fact that the owners were carrying two mortgages certainly helped me.

I am going FHA (I had a pretty good sized down payment), and I've been approved pending house appraisal.  (And of course my lender is on vacation this week, and I have to wait till next week to find out if its a go; if I need another appraisal or what). We are still on target for a March 20th closing.

[Anonymous]

Keep in mind, also, that the amount of any gift, per person, above $13,000 (for 2009) is considered taxable income by the IRS. A married couple (Dad AND Mom, perhaps?) can give you a combined $26,000, however.