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Answers (9)
- Lewis Poretz, "High Quality Advice"
- Contributions:219
Stick with your own judgement and use the monthly payment you think makes the most sense for you. With scores like yours, it appears you handle your credit very well.
Always assume the worst... such as your renters stop paying and you are now responsible for paying that mortgage as well as the new one.... you have a great credit profile - don't stretch it too thin...
Always assume the worst... such as your renters stop paying and you are now responsible for paying that mortgage as well as the new one.... you have a great credit profile - don't stretch it too thin...
- Nick Pakulla, "MD DC VA Mortgage"
- Contributions:63
marylandBuyer - I am with a community bank here in Rockville.
Your closing costs are going to be a little closer to $23,000 depending on specifics of the property (a good estimate is about 3.5% of the sales price). You don't need a true "jumbo" loan as in the DC metro area you can borrow up to $729,750 on what is called a "high-balance conforming" or "jumbo-conforming." Basically, you still get very low rates without needing a true jumbo loan.
FHA requires 3.5% down, and you could in theory ask for seller help to cover some or most of your closing costs, but you would obviously need to get the seller to agree to this when your write your contract. The first step is to speak with a lender so they can look over all of your documents to ensure that you will be qualified holding both properties and write you an approval letter.
You can get a loan with 3.5% down, it is insured by FHA. It comes with mortgage insurance, an upfront mortgage insurance premium (which can be financed into the loan) of 2.25%, and a monthly mortgage insurance of .55%/12 (slated to raise in the coming months).
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
I would wait or choose a lower priced property were you can put at least 20% down. .... Happy funding, Rudi
- marylandBuyer
- Contributions:3
wetdawgs,
The 4600 is actually not from the calculators, but our own imposed max payment, based on a very detailed budget I created that will allow us to keep our lifestyle (just not so many vacations :( or gift giving), right now I'm doing that thing they recommend of "pretending" you already have the mortgage and putting the payments aside in savings, that's how we got the down payment and closing costs together, I guess we could wait until we have done this for a few more months so we will have double the amount, but if we could do it soon I would prefer that.
I know that with what we make we should have much more saved, and part of it was definitely us enjoying life, but another part was getting completelly debt free (we had a bit of debt from our wedding and student loans). But we're serious in putting our money to a better use now.
The 4600 is actually not from the calculators, but our own imposed max payment, based on a very detailed budget I created that will allow us to keep our lifestyle (just not so many vacations :( or gift giving), right now I'm doing that thing they recommend of "pretending" you already have the mortgage and putting the payments aside in savings, that's how we got the down payment and closing costs together, I guess we could wait until we have done this for a few more months so we will have double the amount, but if we could do it soon I would prefer that.
I know that with what we make we should have much more saved, and part of it was definitely us enjoying life, but another part was getting completelly debt free (we had a bit of debt from our wedding and student loans). But we're serious in putting our money to a better use now.
- wetdawgs
- Contributions:26804
Another thing to consider is that you mentioned that you are living below your means, yet you only have $22,000 saved up for a down payment with a $200k+ income. This suggests to me that you've been having a lot of "enjoying life". If you buy the home at the maximum of what the calculators or loan officers say you can afford, you will have to cut back considerably on the "enjoying life". Therefore, perhaps you don't want to buy at the maximum possible.
- marylandBuyer
- Contributions:3
Stacey, our current loan is not FHA, so I guess we're good there.
Johnatan, Thanks for the tip on the "jumbo" loan, I hadn't thought of that, I heard some friends say something about this, but I didn't think it would apply to us, I'm going to look into that a bit.
I guess from the answers so far I'm not so off track. That's good :).
- Patrick Ignacio, "patrick ignacio"
- Contributions:322
Based on the income, only monthly expense of 1050/mo for current home, and your amount of down payment, i do agree that the calculations and purchase price you are qualified for is well within approval and bank guidelines.
You are well qualified for the FHA 3.5% purchase program based on your situation.
I don't think it's a matter of qualifying and being approved since all the mentioned factors are very strong and can easily purchase.
This sounds like a question more for you and your family, if you are willing to change your lifestyle and dedicate the residual income and debt freedom in exchange for a bigger and better home.
You are well qualified for the FHA 3.5% purchase program based on your situation.
I don't think it's a matter of qualifying and being approved since all the mentioned factors are very strong and can easily purchase.
This sounds like a question more for you and your family, if you are willing to change your lifestyle and dedicate the residual income and debt freedom in exchange for a bigger and better home.
- Stacey Baugh, "staceybaugh"
- Contributions:24
It depends on whether you have an FHA loan on your current home. An FHA loan is going to be the product that qualifies for the 3.5% down. With credit scores in the mid 700s you are likely to qualify for a good loan. However, the amount you qualify for will take into account all the other debts that you might have.
I would talk to a good mortgage broker who can go over your specific situation and make a recommendation for what you feel comfortable in. Feel free to contact me if you would like a recommendation for a good mortgage person.
I would talk to a good mortgage broker who can go over your specific situation and make a recommendation for what you feel comfortable in. Feel free to contact me if you would like a recommendation for a good mortgage person.
- Jonathan Benya, "Jonathan Benya"
- Contributions:174
It's possible, but you're going to need to speak with a lender about this one. At this price point, you are probably getting a "jumbo" loan, and you may need to have more than 3.5% down. If you'd like assistance, please feel free to give me a call!
For a $650000 home, is this realistic??
Down payment: 22000 (3.5% of 650000)
Closing costs: 10000
Max monthly payment (including principal, taxes and PITI): 4600
Taxes in the areas we are looking at are about 6000-8000 per year.
According to some of the calculators online we could afford a 650000 home, with a loan of about 5-6% 30 yr fixed APR.
Our income is 200K+, and we have good credit (750+ for both my husband and I). We refinanced our current home earlier in the year and we had no problems getting the loan, I think it was like 4.7%APR fixed 30yrs. We're planning to rent that home, so no down payment from there (it has about 80000 equity and that mortgage is like 1050).
So is this realistic?, can you really get a good loan with such a little down payment or do we have to wait until we have more saved?
Thanks,
MarylandBuyer
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