SONYMA vs. Conventional

[huntsmama]

Hi everyone! I appreciate any input on the follow:

It's been the plan for several months that I will be applying for a mortgage in October. Reasons for this: my sons father will finally be paying child supprt (hooooray!) and I will be getting an overborrow from college that will be quite helpful with my downpayment (I know this is a no-no please don't lecture or judge me on that). I've been planning to get a SONYMA mortgage for a couple reasons; they don't ask where your funds came from if they're in your account prior to applying, they require a low downpayment and have downpayment assitance, they don't charge you PMI for the life of the loan like FHA and they don't count student loans deferred 3+ years toward DTI. Today I was messing aorund on Lending Tree, not applying, just ressearching and it appears that with my ~700 credit score (which will be higher in October) I could qualify conventional with 3% down and ridiculously low fees at closing.

So below is my breakdown. I haven't thought conventional was an option and have no idea what the hoops you have to jump through are. If anyone could give me some advice on how much I can afford, if conventional is a realistic option and if I'd be able to use my overborrow/exclude student loans, I'd really appreciate it!

Income: $38,500 annual salary (W2), up to $3,850 annual bonus, ~$7,500 annual child support

Expenses: $282 car payment, $28 student loan

Deferred student loans: ~$300/month deferred till June 2017

Single family home-Primary residence

Upstate NY, Saratoga or Schenectady county

[huntsmama]

Anyone????

[Anonymous]

Hi, your scenario is a little on the complex side, so I suggest you arrange to sit down with (or at least speak with on the phone) a local mortgage professional within the next several weeks (such as Andy K with M&T Mortgage on Ushers Road, off Exit 10). Make sure he/she is with a reputable lender who does SONYMA loans and try to go in with an idea of the max payment with which you'd be comfortable, what the yearly taxes will be on your new home and how much money realistically you'll have to work with for closing and downpayment. 

I would advise against using Lending Tree because they're not familiar with and/or not including all of the settlement charges necessary to close a loan with a taxes escrow in NYS and I would also advise against using anyone with the lender who incorrectly informed you that SONYMA isn't concerned with documenting source(s) of funds for large deposit(s). 

Also, it will have to be determined the number of months you'll need to provide proof that you've actually received child support payments...typically it's at least 3 months, so that may set your timetable back a bit, especially if you need the child support income to qualify. It also gets a little tricky as to whether bonus income can be used to qualify or not. Student loan proceeds per se can't be used to close on a mortgage because it's unsecured funds but an experienced Mortgage Loan Originator (such as Andy) will work with you in that regard and will determine the best program to go with under the circumstances and with your good credit scores.

All of the above being said, to give you a quick idea: The monthly mortgage payment usually works out to be about $75 per month (total) for every $10,000 of home sales price (unless you go into a part of Schdy County where taxes are significantly higher) and an Applicant typically qualifies for a home that is (up to) approximately 3 to 3.5 times the total annual (usable) income. Good Luck.

[huntsmama]

Thanks for your info! I sent you a private message with a few more questions, hope that's ok!