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Fannie/Freddie offering 3% down

The last post in this topic was posted 2169 days ago. 

 

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This is a great thing! It hits just as we are looking...

 

We went through initial underwriting, so will the final underwriting allow for this program, since it needs to go through DU?

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So with just very vague details released, I am wondering if I would even qualify. Bought a house in 2011 with my mom as a cosigner, sold it in September 2013 and I have been renting for the past year or so. Ready to get back into home ownership (without the cosigner). I obviously am not a first time homebuyer. :cry2:

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It will take some time for banks to roll this out and they usually wait until all of the issues are resolved

If they dont like a guideline they can always make it tougher to qualify

 

This is a bring back as Fannie used to offer a 3% down

the big question no is will the companies offering mortgage insurance go along with it and at what cost

part of the problem before was the higher rate of default with less down -- as that happened the MI insurers backed out almost forcing fannie to adjust

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What can I get approved for with this new loan offering?

 

2013 income - $80,500 with over time

2014 income - $93,500 with over time

Fico score -780 very strong credit lines

I live in San Jose, CA

No co-signer

 

Debt monthly payments

Car 1 payment $208

Car 2 payment $$175

Credit card $75

 

That's all the monthly debt for loans and credit.

Also my income will be higher next year around the $100k to 110k range.

 

Thanks!

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What can I get approved for with this new loan offering?

 

2013 income - $80,500 with over time

2014 income - $93,500 with over time

Fico score -780 very strong credit lines

I live in San Jose, CA

No co-signer

 

Debt monthly payments

Car 1 payment $208

Car 2 payment $$175

Credit card $75

 

That's all the monthly debt for loans and credit.

Also my income will be higher next year around the $100k to 110k range.

 

Thanks!

The amount you qualify for wont change very much since we are only talking about a 2% change when it licks in

As far as what you shared and using 45% as a max on the dti

93500/12 = 7791 a month

45% of that would be 3505

Subtract the $463 (car and card) leaves 3042 for a mortgage

This will allow for a pretty large loan - 350-400k possibly more -

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Radian will now accept 97% LTV in their rate finder. Its a little over double the percentage for 95%. I feel that could change though as more people commit to it.

Edited by EricDET

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Fannie Mae updated the automated underwriting engine to include 97% loans.

Many lenders will be ready to roll this out pretty quick now.
Next week looks pretty good...... If the MI companies perform.

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Thanks Brian for the reply. Looking at condos and houses in the south bay and everything is over $300-400k. What can I do to get a loan with $500-600k amount? I have my fiancé who will be supplying income as well but unfortunately is going through a BK 7. She has a $80k a year income. Her BK7 will be finalized early 2015 Jan. Thanks

 

 

What can I get approved for with this new loan offering?

2013 income - $80,500 with over time

2014 income - $93,500 with over time

Fico score -780 very strong credit lines

I live in San Jose, CA

No co-signer

Debt monthly payments

Car 1 payment $208

Car 2 payment $$175

Credit card $75

That's all the monthly debt for loans and credit.

Also my income will be higher next year around the $100k to 110k range.

Thanks!

 

The amount you qualify for wont change very much since we are only talking about a 2% change when it licks in

As far as what you shared and using 45% as a max on the dti

93500/12 = 7791 a month

45% of that would be 3505

Subtract the $463 (car and card) leaves 3042 for a mortgage

This will allow for a pretty large loan - 350-400k possibly more -

Edited by Venomized

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Thanks Brian for the reply. Looking at condos and houses in the south bay and everything is over $300-400k. What can I do to get a loan with $500-600k amount? I have my fiancé who will be supplying income as well but unfortunately is going through a BK 7. She has a $80k a year income. Her BK7 will be finalized early 2015 Jan. Thanks

 

 

You will likely need to wait until you can show the 100-110k income - at that point you should have enough income to do the loan on your own - her income cant be counted for a while because of the BK -

Loans in that range are a little different because they exceed the conforming loan amount of 417k

This will make it a jumbo loan - they are available but are a little tougher than a conforming

You should also have the option for fha - that is within the limits for most of the bay area

If you wait for her bk to season it will be 2 years post discharge before she would be eligible for FHA - longer for conventional

B

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So with my current income at $93k I can do FHA and possibly get approved at $500+k? Or I will have to wait to i show $100-110k for a FHA at $500+k?

 

I'm interested in something similar to this:

http://www.zillow.com/homedetails/577-King-George-Ave-San-Jose-CA-95136/54771001_zpid/

 

I also have about $35k deposit.

Without knowing the exact numbers it is hard to say if you will or wont given the current income

For a condo you will have taxes and insurance as well as a Home Owners fee

the link shows a quote for a mortgage of less than 2k - I can guarantee that does not factor in any of those items and is there to entice you more than to help you calculate the needed info

 

You may be ok at the current income level but it will be close -

B

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I'm buying a house now with less than 20% dp and the conventional was a much better option than the FHA loan for me. The fact that the FHA MIP is calculated at 1.3-1.35% of the purchase price, plus the fact that the borrower must pay upfront for the MIP (I think it's 2% of purchase price?)--um, no. This means if you wanted to originally mortgage 100k, your new mortgage is now 100k + 2% of 100k = 102k mortgage borrowed.

 

There was no mention of this "new" conventional min 3% down to me, but I have much more than that and it wouldn't sway me. I would have preferred to have 20% but being under that has not in the slightest made me want to go in with less. I imagine that the 3% dp conventional will have higher PMI and higher APR.

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