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First Time Buyer Options.

Prop value $649,998 in California,I have dual income $80k / year. FICO 614, debt of about $7,100/m. My wife and I have saved around $16k towards a down payment but saving 20% of the purchase price is a little out of reach. We are first time home buyers - what are my options? by purpleheart_gulf8... from Calistoga, California. May 8th 2018 Reply


Mike Shaw (MikeShaw)
#180 ranked lender in Colorado - 9 contributions

Well there are a lot of questions here but I assume your total gross annual income is 160k and that the 7100 includes the new mortgage payment, plus loans and credit cards which puts your Debt to Income ratio around 53%. If the loan is within the FHA limit for the area , it still requires more than 16k down. You'd need a gift from relatives or maybe a community grant or second for down payment and costs. Not sure if FHA will approve you at a 53 ratio and 614 FICO. Even a Jumbo loan requires a minimum of 5-10% down and won't usually go over a 35-43 ratio,. You need to have someone run a full pre-approval, maybe using DU or LP pre-underwriting but I only do loans in Colorado.

May 8th 2018
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Mike Shaw (MikeShaw)
#180 ranked lender in Colorado - 9 contributions

I forgot to add that there are great CA lenders in the directory on this site that can help!!

May 8th 2018
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,414 contributions

More info needed,.. $80K per year is about $6670 per month.. yet you say your monthly debt is $7,100.. Somethings' not right.. either you don't have $7100 in monthly debt, or your income higher than $80K per year. When it comes to DTI, most borrowers do not calculate it correctly.. As a lender, we're only concerned about your minimum required monthly payments on "DEBT".. credit cards, student loans, car loans, mortgage, etc.. We do not include your cell phone payments, utility payments, insurance, etc.. those are bills'.. they're not payments on DEBT.. We also include the new housing payment and if you have any government responsibility such as payments on back taxes, alimony, child support, payments on outstanding judgement, etc.. those must be included.. Realistically, you should reach out to a mortgage professional licensed in your state *(like ME!!) and give them 5 minutes of your time.. once they see the complete loan scenario, they will be better equipped to advise you. In short, you don't need 20% down. .First time home buyers can purchase with 3% to 5% down.. So, you will need a total of $20,000 to $33,000 for the minimum down payment.. however, there are options such as local grant programs and down payment assistance programs.. Also, we would need to look closer at your credit scores.. Lenders run all 3 major reports and we do it on ALL borrowers.. loan pricing is based on the LOWEST Mid score of all borrowers.. so if 614 is your highest score, then we need to help you get that number higher.. this is all done by your mortgage pro *(like ME!!).. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

May 9th 2018
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