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What is the best type of loan for me?

I have a secure job for the last 10 years with the same company and make $57.000 a year. My debt is 0 dollars and have a credit score of 680 through trans Union and 750 through experian. My problem is the down payment, I am only able to put down about 8% on the home I am looking at. Thank you in advance for the advice!
  • December 30 2013 - US
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Answers (6)

I would recommend an FHA loan or a low down payment conventional loan. Your credit score is strong enough to give you qualification for both of these options. As you know, it is your down payment that is limiting you. FHA would work since it only requires 3.5% down. Some conventional loans will work as long as the down payment is 5% down. I recommend that you look into both of these and compares prices for these. Either way, the best thing for you to do right now is to speak with a lender to see if you can get started on financing a new home. There are lenders like myself that 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 further questions or if you would like a loan, feel free to contact me!

Good Luck!
  • December 30 2013
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The main question is what is your middle score.  There is a third score that will determine what your best option is  Important that you sit down and look at all your options with an experienced loan officer.  Contact me through my profile to discuss.
  • December 30 2013
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Sounds like you have plenty of money for a down payment no matter what type of loan program you choose.  Based on you income, debt and credit i would pick a conventional option.  If you want to put 3.5% down then you can look at an FHA loan but it might be a bit more expensive.  Contact me if you wish to go over anything in detail.  Good Luck!
  • December 30 2013
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Assuming your credit score is high enough, a Conventional loan with only 5% down would probably be your best option as the monthly mortgage insurance will be lower than on FHA and you will avoid the upfront mortgage insurance of 1.75% that is required on FHA.  You do not need 10% for your down payment.

If you need to be pre-approved or have questions to ask, feel free to reach out to me through my profile.  Good luck!

David
  • December 30 2013
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There are so many options available it is simply hard to recommend one with so little information. 

In regards to down payment, there are still a couple loans out there which would potentially allow you to purchase a home with no money down (USDA and VA)  however if you don't qualify for those then you would need a minimum of 3.5% down for FHA (all gift is okay) and 5% for conventional (not a gift).  So your 8% will be fine.  It will mean that you will most likely be looking to pay for Mortgage Insurance on top of your payment but that simply means you just need to budget for it. 

On an aside i would look into why you have such a gap in credit scores, normal is 10 -20 points 70 points is a very large and unusual difference.  It can sometimes indicate that something needs your attention, also depending on your equifax report you might not qualify for all the best programs.

Good Luck!

feel free to contact me with further questions.
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FHA loans require only 3.5% down and anything with less than 20% will carry a mortgage insurance premium. There are some 10% down loans available too.
  • December 30 2013
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