this is the beginning of my first time home buyer journey. I want to document the experience here where my credit rebuilding journey started over a year ago.
Progress So far:
9-9-2013 LO pulled my credit EQ-649, EX-655, TU-711
***UPDATE BELOW***
Will update with new info as it becomes available. Wish me Luck!!
Alright! Good Luck
Starting Score: 500's
Good luck!!
Starting Score: 529
Good Luck
Bringing things up to date.....
LO came back with pre-approval and told me about a special funding program for low income households. The program has a 35,000 income limit, a 115,000 purchase price limit, a 640 credit score requirement, and it would be FHA 30-year fixed at 2.5%. Any thoughts or opinions on this program?
Now the dilema.....
The condo is new construction, 3bed 2bth, 1380 sq ft. for 120,000. my realtor is great and spoke with the listing agent who spoke with the builder. They will bring the price down to 115,000 but take away the 1 car attached garage(could buy outright for $5999 later if available) and give me the appliances package including a builder grade refrigerator with ice maker.
So my LO did a good faith estimate break down and my closing cost(i would have to pay since cannot be rolled into the loan due to the purchase price limit) would be $3500. Loan would be approx. 113,000 after $5000 down payment. estimated monthly payment 842.00
It seems kind of high to get a condo with no garage for that amount but I'm looking for honest opinions, what would you do? I am considering having Republic Bank do a pre-approval since they are currently offering $0 closing costs and possibly looking at other condos
Sorry so long and Thank you in advance for any help/suggestions.
The condo does have everything I want inside. I've looked at so many and keep coming back to this one. I'm not going to live in the garage, lol. I don't think I can walk away from this condo. Now if I could just figure out the closing cost issue- just pay it out of pocket or find another lender to help with paying it?
Did you do the math?
If rates are at 4% you save $1,725/year in interest
If rates are at 5% you save $2,875/year in interest
I think that's a pretty good payback for deleting the garage at least temporarily. You could probably work out a deal with the builder to tote the note after closing. Offer him $165/month for 36 months to add the garage.
Take the 2.5 deal
@rm3 wrote:The condo does have everything I want inside. I've looked at so many and keep coming back to this one. I'm not going to live in the garage, lol. I don't think I can walk away from this condo. Now if I could just figure out the closing cost issue- just pay it out of pocket or find another lender to help with paying it?
Always negotiate.