Question : How much interest rate would I get on my mortgage loan and how much would I pay monthly given my situation?
I am a 24yo med student in Chicago looking to buy a condominium. As a student, I have no steady income but do have around $30,000 available for a 10% downpayment. My credit score is 760. Can I get a mortgage with a reasonable interest rate given my credit score and lack of steady income and what would that rate be? I plan on purchasing a condo and renting it out for 2-3 years and using the rent to supplement monthly mortgage until I have a consistent income high enough for me to move-in myself. What steps must I take to fulfill my plan of first time home ownership?
- asked by doesnotexist1
All Answers:
Answer #1
Your credit is good - the income is the problem -You could go "stated" income - With a stated deal,the Broker computes a income rage in for your typeof job. The underwriter calls and verify's yourjob - but does not ask for income from youremployer. You may also look into interest onlyfor 5 years at a fixed rate. This will lower yourpayment, until you are done with college - or youcan get a fixed rate for 30 years, you will get agood rate - but going stated, the rate will beslightly higher. There are also djustable loans,option arms (where you pick the payment, from 4payments, including interest only). And as Imentioned eariler, the Interest only give you alower payment, but nothing is being paid on yourhome. Some self-employed ppl like the paymentoptions, in a lean month when money is tight.,they can pay a lesser amountDecide on how much youwant to spend, if you want to escrow the taxes andinsurance. Say the taxes are 1200 a YR andinsurance 800 a year (just an estimate, ok) Thatis 2,000 a year divided by 12 = 166.66 If you paid1,000 a month now - (166.66) your P/I Principleand Interest would be 833.34. Now you decided onthe price range you are looking into. If you havegreat credit, a 1 loan at 130,000 at a rate of 7percent over a 30 year time would be 864.89 - Thisis just a estimate - ok - It greatly depends ifyou need help with closing cost, (The seller coulddo Seller Help toward your closing cost). If thatis the case, I normally tell my clients NOT tohackle over the price, since you are asking forclosing cost help - especially if the home is thrua realitor, and the seller has to pay the realitortheir fee which runs from 2-6 percent of theselling price, and you ask for 4-5 percent towardclosing cost -assistance) Follow me so far?? Talkwith a broker, a broker underwrites for manycompany's (I underwrite for 150 companies) so Ionly have to pull credit 1 time, and they look atmy credit. A single lender (not a broker) hasprograms available, but they may not be able tohelp you and your situation, so you go elsewhere,and than that person pulls your credit (see what Imean.) If you shop, your credit is pulled and thatis considered a soft pull, for a 30 day period.Just like shopping for a auto, it is good for 30days. If you apply for a credit card, that isconsidered a "hard" pull and it drags down yourcredit score. By the way, a loan application iscalled a 1003, and they will issue you a GFE (GoodFaith estimate, with-in 3 days, that is per theRESPA laws, and the TIL (Truth in Lending). Thiswill tell you the up-front closing cost (etc)associated with your loan. This is a estimate only- not the final - but it does help you figurethings out. Good Luck, and if I can help in anyway check out my web site, for links to all thecredit reporting agency's and other usefulinformation.
- answered by W. E
Answer #2
first thing you need to do is consult with amortgage lender at your bank. they should be ableto answer most if not all of your questions. thenfind a good realtor to help you get the best deal. the realtor can also help to find any first timehome buyer programs you may be eligible for.
- answered by daniel r
Answer #3
You might want to check out FHA's Kiddie Condoprogram.
http://www.lendermark.com/fha_kiddie_condo_program.htm
- answered by lendermark1
Answer #4
With a strong credit score like that you canqualify for a no doc loan, thus no documentedincome needed. Keep in mind this type of loan doescome with a slightly higher interest rate. If youhave any further questions email metadgeman@yahoo.com.
- answered by Dan
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measure and fulfill your financial needs
