California Empty Nester with FICO-08's over 800 - Less than 20% - Down are there any options?

[PCR20]

We are in our mid 50's, are now living in an oversized "Empty Nest" and are thinking about buying a smaller ranch-home but ... coming up with 20% is a hard task until we can sell our current house. 

We have about 5% saved for a $450K home, and probably would have another 5%-10% or so after we sell the one we are living in now.

I’m the only one working, about 35 years in the same field making about $150K plus stock RSU’s of another ~$40K a year.

I'm not sure where my FICO04's sit right now.

As best as I know there's no place to get all three of those, only the three FICO08’s from here.

Can we buy a house using just my FICO and Income information? (My wife does not work, and her FICOs are lower than mine.)

Are there any good loan options out here in California for less than 20% down?

[Anonymous]

I'll take shot seeing are situations are similar.  We are in are also late 50s, empty nest since my mid 40s, leaving our paid for home of 37 years to build a new home.  The new will be just a little bigger, in living space, but I can cut the yard in 10 min, which at my age is big.  No trees to clean up after either.

Also need the cash out of my current home for downpayment, but plan B is a HELOC loan on the old, or the 3.5% downpayment you can get away with the FHA, I move and rent out our old, or just sit on it till we get the price we want.  You maybe different because the payment on the old and new is too risky.  Our new build is 250k=8700 downpayment, builder paying all closing costs.

Spent time in Calif, I know 450k is not a lot of money for a home out there.  My new home sells for 750k-1 mil  in Calif?

I don't know of any DP assitance for your income.  Probably gonna have to sell your home first, and see whats left to pay down after fees.

Have you thought of leaving Calif?   Take your retirement money, sell your house, and move to Idaho!  You know what kind of house 450k buys in Boise!!???  The annual tax on my new home is 600 dollars, my old was 250 a year LOL.  I'd be curious to know the taxes per month on a 450k house out there.

I don't think FHA does 450k mortgage?  Not sure they might in Calif since 450 out there not that big a deal.  Good credit and income so conventional might talk to you with 10% or less down. That is still 45,000 downpayment, not exactly chump change.

[Anonymous]

With good scored and at least 5% down it would make since to do a regular conventional loan with 5% down. There will be pmi until you have 78% equity but it's still your best option. Unless you have a lot of debt I don't see you having a problem buying without your wife's credit.

[StartingOver10]

Have you thought about an 80%/10%/10% loan? That way you have no PMI. (80% first, 10% second and 10% down payment)

I have heard that there are a few lenders that will do 80%/15%/5% (80% first, 15% second and 5% down payment) with no MI.

Yes you can get a mortgage on your own without your wife but because you are in a community property state your wife's debt will be taken into account.

Mortgage loans up to 95%  with mortgage insurance are common and easily obtainable depending upon your income, debt and credit. Even if you go to 95%, with excellent credit the MI is very low. There is even an option to make a single payment at closing so you don't have to pay monthly on conventional loans.

[vanillabean]

I can relate to your present, but not at all to your choice of future! We too are a couple in our fifties living in California with FICO 08s in the 800s. You now have that extra space and don’t enjoy it still being young and full of life?

We recently moved, so DW could avoid a time-consuming commute and now walk to work. We sold the house and rented an apartment in the new location until we found the right house, which happened a few weeks ago. That was exactly the right way for us.

Our new house is actually bigger than our former. It’ll be twenty years before we downsize. After all, it is important for people our age to stay physically active, and what better way than cleaning the house, enjoying the yard and walking the neighborhood?

Such preventive maintenance is what will keep down the everyday cost of your home. Adding to the savings is our new 30 year mortgage at 3.75%; we are going to love those tax deductions shaving off the higher tax rates! Our appliances are all energy saver, so major money savers all around.

Of course that only works because we have no debt, have put money aside for retirement and still have a few years of work ahead of us. Some not in that situation may be downsizing for financial reasons. But that’s another story.

To recap, have you considered “bridging” your move with a stay at a rental? We put our proceeds from the sale in a high-yield savings account and have been fine inbetween. Surprisingly many others, we have been told, have chosen the same approach. Also, once we had sold, our FICO 04s were available by way of the preapproval.

[Anonymous]

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@Anonymous-own-fico wrote:

I can relate to your present, but not at all to your choice of future! We too are a couple in our fifties living in California with FICO 08s in the 800s. You now have that extra space and don’t enjoy it still being young and full of life?

We recently moved, so DW could avoid a time-consuming commute and now walk to work. We sold the house and rented an apartment in the new location until we found the right house, which happened a few weeks ago. That was exactly the right way for us.

Our new house is actually bigger than our former. It’ll be twenty years before we downsize. After all, it is important for people our age to stay physically active, and what better way than cleaning the house, enjoying the yard and walking the neighborhood?

Such preventive maintenance is what will keep down the everyday cost of your home. Adding to the savings is our new 30 year mortgage at 3.75%; we are going to love those tax deductions shaving off the higher tax rates! Our appliances are all energy saver, so major money savers all around.

Of course that only works because we have no debt, have put money aside for retirement and still have a few years of work ahead of us. Some not in that situation may be downsizing for financial reasons. But that’s another story.

To recap, have you considered “bridging” your move with a stay at a rental? We put our proceeds from the sale in a high-yield savings account and have been fine inbetween. Surprisingly many others, we have been told, have chosen the same approach. Also, once we had sold, our FICO 04s were available by way of the preapproval.

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Very sound advice! Thanks for the information!!

[Anonymous]

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@PCR20 wrote:

We are in our mid 50's, are now living in an oversized "Empty Nest" and are thinking about buying a smaller ranch-home but ... coming up with 20% is a hard task until we can sell our current house. 

We have about 5% saved for a $450K home, and probably would have another 5%-10% or so after we sell the one we are living in now.

I’m the only one working, about 35 years in the same field making about $150K plus stock RSU’s of another ~$40K a year.

I'm not sure where my FICO04's sit right now.

As best as I know there's no place to get all three of those, only the three FICO08’s from here.

Can we buy a house using just my FICO and Income information? (My wife does not work, and her FICOs are lower than mine.)

Are there any good loan options out here in California for less than 20% down?

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Hello PCR20!!! I can't help with the mortgage questions. However, as of a couple of weeks ago, I believe myFICO now offers all of those credit scores for all three CBs when you purchase your credit reports from them. Good luck with obtaining a solution that's right for you!!!