Jump to content

Is approval for a zero down ARM @ $500K realistic for us??


The last post in this topic was posted 2331 days ago. 

 

We strongly encourage you to start a new post instead of replying to this one.

Recommended Posts

We just had our 5th child this year and we are out of room in current home. Need to upgrade to 5BR house. $500K is the high end of our budget. Wasn't planning to move this soon but rates and still good and the local market is moving. The problem is that we have very limited cash on hand so FHA seems to be our best option.

 

Looking for some CB help to determine what i can reasonably expect to get approved for.

 

FICO Scores are between 700-750 depending on the CRA. (should all be over 720 in 30 days after 60K in NASA FCU brings down our cred util)

 

Gross Monthly Income is ~$15000

DTI is about 30% (4400 across credit cards, auto loans, and current mortgage of $1200)

 

Based on my very limited research, it appears that our best case scenario is a 0 down ARM (5/5 or a 5/1). DW is getting her masters for nursing so our outlook in 5 years is pretty good.

 

Which banks or CU's would be my best option to start with?

 

Appreciate the help very much!

 

 

 

 

Link to post
Share on other sites

FHA may work but you will need a down payment - I dont know of any programs other than USDA (which you make too much to qualify for) and VA (past vets only) that will go to 100% financing -

For FHA on 500k you will need a minimum of $17,500.00

Thats 3.5% - have you checked the FHA limits in your area to see what the loan limit is for the region? It varies -most of the country caps at $273k but a few higher end areas will go to over $600k

 

Your credit is fine - the total dti should be at 45% or less

what is the plan with the current home?

 

B

Link to post
Share on other sites

thanks so much for the quick response Brian.

 

Haven't checked the FHA limits. We are in Cincinnati, OH area.

 

Plan is to sell current home. Probably looking at $10-15K net profit after costs and fees. 17500 should not be a problem for us.

 

Any recommendations on banks or CUs that are most reputable / generous?

Link to post
Share on other sites

This sounds very risky.

 

That's a very big mortgage payment and you will have almost 0 cash after your DP.

 

On top of that you're looking at an ARM when interest rates are the lowest in decades.

 

You're very likely going to see that payment rise out of your budget. And then you'll be trying to refi when rates have risen.

 

This just sounds bad to me in every way imaginable.

Link to post
Share on other sites

The last post in this topic was posted 2331 days ago. 

 

We strongly encourage you to start a new post instead of replying to this one.

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.




  • Member Statistics

    • Total Members
      180,156
    • Most Online
      2,046

    Newest Member
    Nadinyc
    Joined
×
×
  • Create New...

Important Information

Guidelines