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Down Payment for conventional?

Established Contributor

Down Payment for conventional?

I read on a post that if your car payment is over $100, even if it's less then 10 payments to go that the car payment will get figured into your DTI if you get an FHA loan.

If that's true, then my DTI will be just huge with my car payment and I won't be able to qualify for a mortgage high enough to get a house in my area.

So if you can get an FHA loan with 3% down, what percentage do you need to qualify for a conventional 30 year fixed loan? Does it have to be 20% or can it be 5-10%? I know if I don't put 20% I have to pay for PMI, which I don't want to do, but there's no way I could save up 30K to have 20% on a 150K home, which is the most I think I could qualify for.

Thank you!
4/16/09: TU: 775, EQ: 805
2/11/09: TU: 773, EQ: 790, EX:790
11/16/08: TU: 773, EQ: 785, EX: 780
Goals for 2009: 0 Credit Card Debt & 0% Util (achieved 2/6/09), Mortgage! (achieved 11/2/09), getting closer to 800 scores (I crossed this earlier this year, but I'm sure I'm not there anymore!)
7 REPLIES
Valued Contributor

Re: Down Payment for conventional?

You can get in with 5% down on a conventional loan.
 
Brian
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Brian B The Loan Professor
Mortgage Banker - offering FHA, VA, USDA , and Conventional mortgages in all 50 states -

If I do not respond to a follow up question please feel free to contact me directly
Established Contributor

Re: Down Payment for conventional?

Thank you!
4/16/09: TU: 775, EQ: 805
2/11/09: TU: 773, EQ: 790, EX:790
11/16/08: TU: 773, EQ: 785, EX: 780
Goals for 2009: 0 Credit Card Debt & 0% Util (achieved 2/6/09), Mortgage! (achieved 11/2/09), getting closer to 800 scores (I crossed this earlier this year, but I'm sure I'm not there anymore!)
Frequent Contributor

Re: Down Payment for conventional?



woopah wrote:
I read on a post that if your car payment is over $100, even if it's less then 10 payments to go that the car payment will get figured into your DTI if you get an FHA loan.

If that's true, then my DTI will be just huge with my car payment and I won't be able to qualify for a mortgage high enough to get a house in my area.

So if you can get an FHA loan with 3% down, what percentage do you need to qualify for a conventional 30 year fixed loan? Does it have to be 20% or can it be 5-10%? I know if I don't put 20% I have to pay for PMI, which I don't want to do, but there's no way I could save up 30K to have 20% on a 150K home, which is the most I think I could qualify for.

Thank you!

Does your income qualify you for down payment assistance?. If you don't know contact your local hud housing coordinator to find out.
Established Contributor

Re: Down Payment for conventional?

I looked online for the county I'm interested in, and because of my promotion this year, I'm 6 grand over.

Plus, by the time I'm going to buy, March 09 at the earliest, I think DPA programs will be a thing of the past.

Thanks, though!

Message Edited by woopah on 08-07-2008 07:29 AM
4/16/09: TU: 775, EQ: 805
2/11/09: TU: 773, EQ: 790, EX:790
11/16/08: TU: 773, EQ: 785, EX: 780
Goals for 2009: 0 Credit Card Debt & 0% Util (achieved 2/6/09), Mortgage! (achieved 11/2/09), getting closer to 800 scores (I crossed this earlier this year, but I'm sure I'm not there anymore!)
Frequent Contributor

Re: Down Payment for conventional?



woopah wrote:
I looked online for the county I'm interested in, and because of my promotion this year, I'm 6 grand over.

Plus, by the time I'm going to buy, March 09 at the earliest, I think DPA programs will be a thing of the past.

Thanks, though!

Message Edited by woopah on 08-07-2008 07:29 AM

The pda programs through hud are federal funds paid by tax payer's so these aren't going anywhere.  Now your city or state can run out of this money because of a lot of people taking advantage of them but they usually get more every year.  The pda programs that are going away are the seller funded ones like American Dream.  Also the fed gov raises the income limit alot so while you might not be elligible now you could be by the time you buy.  Another thing is the counselors know of many programs like first time buyer programs that you could be elligible for.  Like in my state.  I am participating in a match program where for every dollar I save the program will match with 4 dollars for a total grant amount of 7500 plus what I save.  The income limit for this program is higher than huds income limit.  Your state/city/county might have programs like that
Established Contributor

Re: Down Payment for conventional?

Thanks! Your match for match program, is there a restriction on the lender you can go through for that?
4/16/09: TU: 775, EQ: 805
2/11/09: TU: 773, EQ: 790, EX:790
11/16/08: TU: 773, EQ: 785, EX: 780
Goals for 2009: 0 Credit Card Debt & 0% Util (achieved 2/6/09), Mortgage! (achieved 11/2/09), getting closer to 800 scores (I crossed this earlier this year, but I'm sure I'm not there anymore!)
Frequent Contributor

Re: Down Payment for conventional?



woopah wrote:
Thanks! Your match for match program, is there a restriction on the lender you can go through for that?

With the match savings plan I also have to get the mortgage with that bank.  I belong to a credit union which also does this program but I chose to go with another bank because I live in NY and there's a mortgage program for both first time buyer and people who haven't own a home in 3 years called SONYMA. The rates are anywhere between .50 and 1% less than the average rate (right now the rate is 5.375).  My cr doesn't participate in this.  Because of the multiple banks in my state I have more avenues then others.  Thats why i mentioned speaking with a hud coordinator.  Most people don't know these programs exist, they aren't advertised and cost nothing.  The worst they can say is either we dont have that program or your salary is to high to participate.  If you don't know where to go, go to www.hud.gov.  Put in your state and they will give you a list of offices in various cities/towns and phone numbers.  Good luck


Message Edited by steelfan on 08-07-2008 09:33 AM