First time buyer down payment questions

[cf2701]

I am looking to buy in the spring. First time for me, so I'm a noob. Assistance is much appreciated!

I have good income, about $115k, plus income from my girlfriend could be used possibly.

I did file CH13 but that conepleted with no lates but that will fall off my reports with early exclusion by Dec/Jan hopefully.

I'm not sure I can save enough for a down payment in time, even at 3% of around $285k. 

How uncommon are mortgages with no money down and rolling the closing cost into the loan? 

Scored are all around 700 and only about 4% debt. 

Exceptional work history. Same job 15 years.

I'm really hoping to make this work and would love feedback! Thanks again! 

[JVille]

I hate to ask but home buying is an exception to "my" rule. 15 yrs on the Job???? What does your 401k allow in terms of borrowing for the purchase of a primary home. That could be your down. Another source is also the Bank of Mom & Dad or Grandma & Grandpa. I know that no one likes to ask but with rates at and below 3% these are exceptional times! 
Just thinking ....

[dragontears]

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@cf2701 wrote:

I am looking to buy in the spring. First time for me, so I'm a noob. Assistance is much appreciated!

I have good income, about $115k, plus income from my girlfriend could be used possibly.

I did file CH13 but that conepleted with no lates but that will fall off my reports with early exclusion by Dec/Jan hopefully.

I'm not sure I can save enough for a down payment in time, even at 3% of around $285k. you may need to wait to buy a house, 3% of $285k is only $8,550. Owning a house can be expensive, what would you do if the furnace breaks down after you buy? Or if your stove dies? 

How uncommon are mortgages with no money down and rolling the closing cost into the loan? extremely uncommon unless you are a veteran, some CU will do 0 down loans but your rate will be higher and you will still need to cover closing 

Scored are all around 700 and only about 4% debt. 4% of what? If your DTI is 4% than you should have no issues saving for a down payment. If your credit card utilization is 4%, that number is really meaningless in regards to mortgages 

Exceptional work history. Same job 15 years.

I'm really hoping to make this work and would love feedback! Thanks again! 

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See above, consider hard if you are financially ready to purchase. Make a spreadsheet/budget and determine when you will have the money to buy.

[NC_Mtg_Loaner]

Borrowing from your 401k is the way to go if you are able.

Increase your savings amount to 10% or 20% of your income now if you don't have $20k in your 401k already.   It's a quick way to boost your account balance in the short run if necessary.    Use a loan from your 401k for the down payment when you find your home and then reduce your savings amount to offset paying the loan back quickly so that those funds don't suffer from being out of the market for a long time.

[dragontears]

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@Anonymous wrote:

Yes, you absolutely can get at least an FHA loan with no money down. Or possibly a conventional 97/3 Fannie Mae loan.

Heres how:

1. check this site- https://chenoafund.org

2. Every state has DPA programs (down payment assistance). Google down payment assistance for your state OR go to downpayment resource.com , and sign up for the free online seminars. They wont try to sell you anything.

3. Use a realtor in your area that will put in 1% towards closing costs, or make an offer for the seller to pay them.

4. Your probably income restricted from using a USDA loan.

Good luck

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The OP income likely disqualifies them from DPA programs (my income is less than theirs and I make too much for DPA programs in my area) unless they are in a crazy high cost of living area in which case they will never find a house for 285k. 

[sxa001]

Obviously we don't have all the details about your expenses but if 4% is your total DTI with 115k income it probably won't take you long to save up 20-30k.  I would wait a year and get the savings account padded a bit if I were in your shoes.  It can be tempting to look at products like zero down loans but you will be more limited and pay more in the long run.  

[cf2701]

Thanks for the advise everyone. Plenty to think about. 

I just came out of a divorce about 8 months ago so my savings is very low. Also, while my income is decent, my overhead to my x-wife is not insignificant. (Although not crazy)

I was just trying to learn as much as I could and get insights from you all prior to making any decisions. 

Sounds like it's need to get my savings built up more and then re-evaluate. 

I assume one option is to get 3-5% down min and try to negotiate closing cost to be paid by seller? Or can you roll those into the loan?

Thanks for all the help guys and gals. I appreciate the strait forward answers. 

[dragontears]

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@cf2701 wrote:

Thanks for the advise everyone. Plenty to think about. 

I just came out of a divorce about 8 months ago so my savings is very low. Also, while my income is decent, my overhead to my x-wife is not insignificant. (Although not crazy)

I was just trying to learn as much as I could and get insights from you all prior to making any decisions. 

Sounds like it's need to get my savings built up more and then re-evaluate. 

I assume one option is to get 3-5% down min and try to negotiate closing cost to be paid by seller? Or can you roll those into the loan?

Thanks for all the help guys and gals. I appreciate the strait forward answers. 

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Closing costs can be negotiated to be paid by the seller (especially if you are in a buyers market), also you can take a higher interest rate and get lender credits to help with closing costs. Rolling them into the loan isn't normally an option when buying. 

[credit8502020]

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@cf2701 wrote:

Thanks for the advise everyone. Plenty to think about. 

I just came out of a divorce about 8 months ago so my savings is very low. Also, while my income is decent, my overhead to my x-wife is not insignificant. (Although not crazy)

I was just trying to learn as much as I could and get insights from you all prior to making any decisions. 

Sounds like it's need to get my savings built up more and then re-evaluate. 

I assume one option is to get 3-5% down min and try to negotiate closing cost to be paid by seller? Or can you roll those into the loan?

Thanks for all the help guys and gals. I appreciate the strait forward answers. 

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I'm glad the Chenoa Fund was recommended to you. Not all lenders offer these funds so please make sure you chose a lender who is familiar with the program. Please double check if you're in a Buyer's or Seller's market in your area. If it's a Seller's Market, you're going to want to be prepared to potentially not ask for any closing cost assistance to be able to compete with other Buyers. Depending on the home, there may be room to offer more than asking for the home in exchange for closing help if the home will appraise for the higher value. The other thing to consider is if your scores are really strong and you use a lender or broker that is giving you great rates and charges low fees, you may be able to get a low enough interest rate that a lender credit will make sense for you as well. If you do use a program and have a higher fee, please just double check to make sure they will allow you to refinance and the likelihood of being able to do so, etc. 

I wish you the best!!! 

[SouthernCredit]

Similar buying situation not that long ago. Bought a $294000 house with an FHA loan, 3% down. My documented income at the time was only 66000. My wife (who wasn't on the loan) is a licensed realtor and we were able to keep her 3% commission and put it towards our down payment and closing costs. Even with the almost 9000 from her commission, on an FHA loan, I still had to bring over $10000 to the table at close. With my income, I was not eligible for down payment assistance, and I would imagine you wouldn't be either with your income. If your credit scores are over 740, you can find banks with portfolio loans that do conventional mortgages with 0-5% down, but they are likely hard to get now with rates so low. And keep in mind that, with an FHA loan, PMI is permanent, which would increase your monthly payment. If I were you, I would spend some time shoring up some savings, and looking for a low down payment conventional loan from a regional bank that would reduce both the time and amount of PMI you pay over time.