Question for the MOrtgage Experts

[scorepower]

Hello, Me and DW are looking to buy a house in a couple of months. It's in california and the price is around $500,000. Our score are between 694 to 729. We don't have 10% down but we have 15K to use as a down payment. I'm banking on the seller paying the closing cost. Our DTI is about 42% (rough estimate). I'm wondering if this is enough to get us qualified for a house? Our household income is $145,200 year. I'm wondering what type of programs are out there for us? What are lenders looking for now a days, credit score, down payment? Is it necessary to have the 10% down or as long as you have some of the down payment? DW is a teacher and i know of programs out there but will it qualify us based on our household income? I prefer our monthly payments not to exceed $3500. Thanks

[Tuscani]

10% is certainly not needed. There are even $0 programs still out there. And yes, asking the seller to cover closing costs is quite common right now.

[ShanetheMortgageMan]

Like Tuscani said, 10% down isn't needed... 5% down will qualify you for more programs than $15k down, but there are still 0% down financing programs available these days.  If you have less than 5% down, and your financed loan amount will be over the conforming limit (which is $417k on a 1-unit in CA), I'd just recommend you keep the $15k and apply for 100% financing, as rates don't get any better until you put 5% down.  Your DTI and credit scores should be just fine.  On a $500k sales price, you are probably looking at more of a $3,700/mo payment with property taxes & homeowners insurance... and if you have PMI it'd be closer to $4k-4.1k.