@Anonymous wrote:
My Fico scores are all close to 800 with 108K per year income. I have not owned a home in a few years so I would be considered a first time home buyer. I can hold off until the start of the year and have a decent amount saved for a down payment but my lease is up in a couple of months. I am paying off a couple of loans but I am only looking to buy an $80K detached single family in Vienna WV. My total loans are around $1200 per month. I have researched FHA loans at 3.5% down but I dont like the PMI for the life of the loan. I can become a member of NFCU but I am not a vet. Is that a good option? I have also read a little about Movement Mortgage. I just dont want to waste inq to find out what makes sense. I would also need to roll closing cost into the mortgage or have the seller assist.as I only have around 7K in cash currently. Thanks for any help you can give
You have excellent scores. If I were in your shoes I would go for a conventional loan with 5% down. There is a 3% down payment conventional program, but if you compare the two home loan programs you will see that the payment on the 3% is disproportionatly higher due to higher interest rate and higher PMI. Also the closing costs are higher with only 3% down.
There are only two ways to roll in your closing costs and pre-paid expenses due at closing:
- Seller pays toward your costs
- Lender pays toward your costs
If possible work in the closing costs through your purchase contract with a seller's contribution as it is substantially less expensive for you to do it this way.
If the lender pays, your interest rate has to increase to cover the cost and it is very, very expensive to have the lender pay for your closing costs as the higher interest rate stays for the life of the loan. In a rising interest rate market, that is not the best way to obtain funds to pay your closing costs.
You probably don't qualify for a first time homebuyer program due to your income and assets. You can check the programs in your area but they have max household income ceilings tied to the median income in your county and max assets that you are allowed to have and you most likely exceed one or both of those parameters. The best way to check out the program is to search your state (and your county) + down payment assistance mortgage and compare programs yourself. Make sure you are looking at the guidelines directly from the program and not a mortgage broker advertising because *sometimes* the ads are misleading. Note: these programs are not consumer friendly at all. They have higher interest rates and/or higher closing costs than what you will be able to get with a traditional conventional loan.
