Hypothetical Mortgage

[Anonymous]

I am hoping for a small condo in about 1-1 1/2 years. Condo is between 100-125k. First time buyer. Income is $42k a year after taxes.  Scores will be in mid to high 600's . Low util. on credit cards and a current auto loan, no baddies. What is the minimum I would have to put down as a down payment in order to get fiananced with above criteria? Apr?

Message Edited by dvroberts81 on 12-14-2008 10:40 AM

[ShanetheMortgageMan]

3.5%, if you were to apply today with a 540 mid score, expect rates in the 6's.  If you aren't applying for 12-18 months though doesn't really matter what rates are today.

Not sure I understand how your score is around a 540 when you have "no baddies" and "low utilization" - you must have something negative on credit bringing scores down.

[Anonymous]

I think you misunderstood me. I am hoping for those score, low util and no baddies in the next year. Meaning I will try to get rid of my charge off and pay off my credit cards completely. Right now my score are 530-560 but I am planning to fix that before I buy a house.

[ShanetheMortgageMan]

Yes you are right, I did misunderstand you, sorry about that.  With the re-clarifying you did, if you were to have at least a 620 score, then for FHA you'd get rates in the 5's on a 30-year fixed right now.