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Conventional Loans with 5% downpayment, help!

Hello,

My boyfriend and I are thinking of purchasing a home. Based on what we qualify for and what's available, the homes in our range are outside our city of employment. We know of friends and acquaintances who will live in a city that may very well be an hour to an hour and a half away from where they work so they have a home they can afford. Although we have excellent credit and the down  payment, the hiccup we're running into is the fact that he is employed in a city well outside of where the home is located, while my job requires me to travel, often into the city where the home we're thinking of is located. Even my boyfriend's boss lives in the area we're thinking of purchasing in, and his boss drives all the way to the city the company they work for is located.

Is this requirement strictly for conventional loans accepting 5% down payment or are we not looking into the correct type of loan? Any answers are greatly appreciated!

Thank You :)
  • August 29 2012 - US
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Answers (3)

Unless you are buying a very long distance from your work it should not matter. maybe the lender who you have been talking to has internal guidelines that do not allow this. Fannie Mae and Freddie MAc are  ok with it. I work out of Maryland just outside Washington, Dc and there are many people who commute 75 miles or more to work.
  • August 30 2012
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The hurdle in this instance is that in order to show we'll be living in the house, we have to work in the same county, which seems a little strange to me. I figured the lender would care more about job stability than where he's working. Is this a requirement most conventional 5% down loans have???
  • August 30 2012
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usually conventionals are 5%, but you can also look at FHA (govt guaranteed loans) that require 3.5%, but they have limits like in texas for FHA its 271k in most counties, and 400k for conventional.
  • August 30 2012
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