topic Re: Renting vs owning in Mortgage Loans

Renting vs owning

Anonymous — Sat, 03 Oct 2009 21:33:43 GMT

Hi there,

I am looking for an apartment closer to work and the apartment prices are very expensive. They cost the same as a mortgage payment, if not more. My question is:

1. I'm sure this is a no but do banks still offer zero down if you have excellent credit and great debt to income ratio when applying for a mortgage loan?

Please let me know if you have any questions.

Thanks.

Re: Renting vs owning

BrianB_The_Loan_Professor — Sat, 03 Oct 2009 22:02:40 GMT

Only if you are

1) a Vet and get a VA loan

2) Live in a rural community and qualify for a USDA loan

3) can get special down payment assistance offered by a local entity to help with the down payment

Most people are using FHA these days for purchases

It only requires a 3.5% down payment and allows the seller to pay up to 6% for closing costs (must be negotiated when you make your offer)

Good Luck hope this helps

Brian

Re: Renting vs owning

Anonymous — Sat, 03 Oct 2009 22:21:00 GMT

Thanks Brian. What are the requirements to be considered for a FHA loan?

Re: Renting vs owning

BrianB_The_Loan_Professor — Sat, 03 Oct 2009 22:42:06 GMT

620 mid score

3.5% down payment

2 year employment same line of work

Seller can pay up to 6% for closing

Re: Renting vs owning

Anonymous — Sat, 03 Oct 2009 23:47:06 GMT

we are currently going FHA and NH housing. they require 3.5% but we are asked to put 1%down and getting a grant for 4% to go towards the down payment, and are having the seller contribute to pay our closing. we offered 192k and put 2000 down with appraisal and inspedction figured in. The LO did a calculation to see... we were paying 930 a mo for rent, and are looking to pay 1600 a mo for mortgage.. and after 30 yrs, its only like a 20k difference, made more sense to us to own when we saw the figures

Re: Renting vs owning

Anonymous — Sun, 04 Oct 2009 01:27:28 GMT

I'm going through a first time homebuyer program with US Bank. This program is a conventional loan with no PMI -- and they only require $1000 out of pocket. I spend a bit more than that because I gave $1000 earnest money, paid for a $300 inspection, and $400 for the appraisal. But, I will have a 3 bedroom house with my PITI $200 a month less than the rent I'm paying on a 2 bedroom apartment now. My credit is not the best, but I had a mid score of 640 when I originally applied in July.

I know other lenders have programs like this. If you have a homebuying counselor in your area, they can probably tell you about these programs and other downpayment assistance. I started by going to a daylong "home stretch" (first time homebuyer) class, which cost me $35. I think now is actually a great time to buy. I would be tickled pink to be getting this, even without the $8000 tax incentive.