Mortgage outlook for buyers with good credit but a small downpayment?

[robz71lm7]

What's the outlook for good buyers obtaining mortgages now with small downpayments? 

My personal situation is Ex-725 TU-726 Eq-716

That was with three CC's @:

CC1 $1510/4000    (12 months old acct)

CC2 $0/1500          (22 months old acct)

CC3 $0/1500           (7 months old acct)

I also paid off an 8K dollar installment loan in full over a period of 6 months back in 10/06-3/07 (financing for an engagement ring).

I just paid CC1 completely off and have absoultely zero debt right now-I don't know what my scores will become after this and because I also have an inquiry for mortgage preapproval that has yet to hit as well.  Myfico predicts a score jump of 20-60+ points for the payoff, but that is w/o factoring in my preapproval inquiry.  I was preapproved for $150K by my credit union-I gross $50K a year.

Could I possibly still qualify for a good/prime rate even with little to no money down?  All of my income and assets are 100% verifiable and documented.  The biggest thing hitting me right now is my credit history is only 22 months old.  I have been with the same company for over 3.5 years.  I've also never had any lates or other bad stuff.

[Anonymous]

With your fico score you can still do a 100% loan and you still have lots of options. Just shop around and look for a deal. Keep in mind you can even go FHA or do whats called a Flex 100 and still get a good rate. You may run into PMI but you can take a 8 hour class to cut that down. Good Luck

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robz71lm7 wrote:

What's the outlook for good buyers obtaining mortgages now with small downpayments? 

My personal situation is Ex-725 TU-726 Eq-716

That was with three CC's @:

CC1 $1510/4000    (12 months old acct)

CC2 $0/1500          (22 months old acct)

CC3 $0/1500           (7 months old acct)

I also paid off an 8K dollar installment loan in full over a period of 6 months back in 10/06-3/07 (financing for an engagement ring).

I just paid CC1 completely off and have absoultely zero debt right now-I don't know what my scores will become after this and because I also have an inquiry for mortgage preapproval that has yet to hit as well.  Myfico predicts a score jump of 20-60+ points for the payoff, but that is w/o factoring in my preapproval inquiry.  I was preapproved for $150K by my credit union-I gross $50K a year.

Could I possibly still qualify for a good/prime rate even with little to no money down?  All of my income and assets are 100% verifiable and documented.  The biggest thing hitting me right now is my credit history is only 22 months old.  I have been with the same company for over 3.5 years.  I've also never had any lates or other bad stuff.

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[Anonymous]

Hi OneMortgageGuy,

Are you saying that one can reduce PMI by taking a class??  If so, please give us more details.

DiamondDave

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OneMortgageGuy wrote:

With your fico score you can still do a 100% loan and you still have lots of options. Just shop around and look for a deal. Keep in mind you can even go FHA or do whats called a Flex 100 and still get a good rate. You may run into PMI but you can take a 8 hour class to cut that down. Good Luck

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Message Edited by DiamondDave on 08-21-2007 06:31 PM

[ronq]

I am curious about how to reduce PMI. OneMortgageGuy please share some details about that when you get a chance.

[Anonymous]

You can but only on a new purchase. The other thing is with only a few banks that will do let you take that class. So you will need to go through a broker.

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DiamondDave wrote:

Hi OneMortgageGuy,

Are you saying that one can reduce PMI by taking a class??  If so, please give us more details.

DiamondDave

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OneMortgageGuy wrote:

With your fico score you can still do a 100% loan and you still have lots of options. Just shop around and look for a deal. Keep in mind you can even go FHA or do whats called a Flex 100 and still get a good rate. You may run into PMI but you can take a 8 hour class to cut that down. Good Luck

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Message Edited by DiamondDave on 08-21-2007 06:31 PM

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