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Well qualified with 20% ready to go...will "First Time Buyer" loans be available?

Hi,

I believe I'm a well qualified buyer (lowest score >780) with $100k cash for down and closing costs. Stable documented income ~$90k/yr from major high-tech company in the area.

I'm wondering, will first time buyer loans be available to me? I'm interested in single-family homes around $400k.  If these loans WILL be available, how will these types of loans help me?  Will they hurt or limit...come with strings attached?

Any information is greatly appreciated,
Austin, TX
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June 04 2010 - Austin
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Answers (8)

Good day Mr. Douglas,
I am a mortgage consultant in the Austin,TX area and am very familiar with buyers in your situation. The first time buyer programs available are usually geared to help people with limited funds for down payment. Most of those programs do limit the amount of mortgage you can get. For both FHA and USDA loans you are going to be limited to about $280K for a loan amount. If you are looking for a home around $400K I would not suggest you use these programs. However rates are even better today than they were just a few weeks ago and I would be happy to get you a quote together. You do still have options for not using up all your cash and still avoiding the private mortgage insurance. Some of our mortgage loans are lower than 4% right now. I am available to give you any advise if you would like to talk.

Good luck,
Danielle
512-466-9343

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July 12 2010
As everyone mentioned you are in a prime position.

Right now rates are below 5.5% and expected to reach 7.5% over the next year.

Your credit score sounds great and I assume your income is solid as well.  Lenders want to see your mortgage as no more than 33% of your gross monthly income.  So as long as your income is somewhere around the 9k+ /month mark you should be fine.  Talk with a lender first.  If you need any recommendations msg me.

Best,
Robert
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June 07 2010
Mr. Douglas,
With the info given you will should be able to get prime or BEST rates and best deals from banks...but that being said there is a much bigger question.

With interest rate at an all time low and it being a buyers market, does it financially make since to put 20% down? Maybe or maybe not. As a Real Estate Expert I educate my clients with advice from a Certified Financial Planner and a Certified Mortgage Banker to be sure you understand the impact of the investment you are making and also understand all the options available to you. So we can assist you in making the best financial plan.

As a buyer you have all the power to right now, it is important to be sure you have an advocate on your side to be sure you are gaining the best investment to maximize your financial future! Call me if you would like to learn more about our 7 Step Process to help you get the Right Home at the Right Price which includes the Analysis of your Home as an Investment!

Thank you,
Michael Estes
Real Estate Expert
[contact info removed by moderator]
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June 05 2010

Most of my buyers who qualify for a first-time homebuyer program can only spare the minimum downpayment.  Based on your info, you can afford to put 20% down on a $400K home, which would qualify you for a conventional loan at the best interest rate, depending on your debt ratio. This would allow you to avoid the monthly mortgage insurance premiums and monthly escrow payments for taxes and insurance.

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June 05 2010
Most first-time buyer programs are geared towards borrowers with no money, low incomes, etc.  That doesn't sound like an issue for you.  In fact, you should already qualify for the best conventional loans available, so you needn't worry whether first-time buyer programs will be available or not.
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June 04 2010
The only first time homebuyer programs available right now are bond loans that have maximum income requirements and have recapture tax if you sell the home within 5 years.  Based on your income and down payment, you should qualify for the lowest rate/fees on a conventional loan and avoid mortgage insurance.  I am happy to help should you have further questions.
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June 04 2010
bcdouglas,

You are in excellent shape!  With your great credit and down payment, you should not have any issue obtaining a loan for your first home. 

By putting 20% down, you will be able to obtain the best in rates and not have to pay any private mortgage insurance.  And, there should be no strings attached.  You should be able to get the same financing as if this wasn't your first home to buy.

The only thing you may need to be careful of would be your debt-to-income ratio.  Your debt-to-income ratio is what would determine how much of a home you would be able to qualify for.

Austin is a great market and a great place for your first home!


Steve
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June 04 2010
Hello,

You will not really need any assistance programs with your credit and down payment availability.  As of today my best interest rates are at 4.375% with zero points on 30 year mortgages.  There is really no benefit to you for those other programs.  They are to help people who do not have the available assets for a down payments. 

In your case you will want to go conventional because that will get you the very best interest rate, lowest fees and zero monthly mortgage insurance.  If you have any questions please let me know.  I am also a Realtor in Austin and I do not charge my clients any origination fees when I represent them on the real estate side.

Best of luck in your search.
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June 04 2010
 
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