Profile picture for John Lask

Mortgage types for my needs?

I am a first time homebuyer living in NJ with a credit score of 667 and $12,000 in savings . I have been looking for homes in USDA eligible areas but have found few so far. I need to expand my loan options that don't include FHA.FHA is to costly with the insurance and it now never goes away or decreases so id like to avoid that altogether. I would like to hear of other options available such as %97 conventional,%5 conventional? I heard wells fargo offers a low down payment loan with %3 down but can not locate it on the internet. Any and all advice on what options are available for my circumstances would be appreciated,id like to put as little down as possible. Thanks for your help
  • August 04 2013 - US
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Answers (7)

Yes, there are many many lenders out there that can move forward with a Fannie Mae 3% down conventional loan. It appears your stated FICO score is above the minimum requirements.

Try asking a smaller more local lender in your area and ask about this specific product for "Fannie Direct" Lenders.

Good Luck!
  • October 07 2013
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Hi Christine-
We're all mourning the loss of approved USDA areas with the newest maps for NJ.

With that said, my company & I offer Conventional loans with 3% down.  Your indicated FICO score is above our minimum.
I'd be happy to discuss the benefits of our program, and see if we can work within your parameters, so feel free to contact me via my profile- be sure to read reviews first! :) I'm a 'local' NJ lender and can also meet with you in person!  Thanks-
  • October 07 2013
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Profile picture for dk58
There are many mortgage lenders that have different guidelines than traditional banks, and the possibility of buying a home with 5 percent is able to be done without having to go FHA. If you would like to speak in further detail about this, please do not hesitate to contact me at your earliest convenience to review all possible options.

David D Kievsky
NMLS ID: 69815

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  • October 07 2013
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Christine
Have you looked at the NJHMFA's First-Time Homebuyer program?  Rate is a little higher but it will certainly help with the downpayment for a conventional loan.  Here is a link to their web site:
http://www.state.nj.us/dca/hmfa/homeownership/buyers/first/
  • October 07 2013
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There are lenders like myself that are able to do 5% down conventional loans. If you are able to do that, then that's another good option to consider. Have you spoken directly with a lender? That will be the best and easiest way to have you questions answered and to hear all your loan options. Lenders like myself would be glad to speak with you to help you get the loan that you need. Well I hope this helps! If you have any other questions or if you would like a loan, feel free to contact me.

Good Luck!
  • October 04 2013
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I would take a deep look into your credit. IF you can fix a few things and bring up your credit score about 40 to 60 points it would make a huge difference. (Depending on your situation) It will open doors to programs like Hybrid mortgage insurance or Lender Paid MI, With a down payment of 5% to 3%. So take another look at your credit, it may be worth paying some liabilities off or Down to get a better deal on your new home. If you have any questions I can be reached through my profile page. Wish you the best!

Paul Drinkwater
LO 
  • October 04 2013
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Hi Christine B,

There are conventional loans with mortgage insurance that drops off when you get to a certain point and also lender paid mortgage insurance programs available. I would be glad to run some scenarios for you and let you know what options would be best for you. If you are still looking & are interested please message me through my Zillow profile to set up a phone call. Good luck!
  • October 04 2013
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