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Hi! First time homebuyer w/a question = )

Posted by on May. 8, 2009 at 5:04 PM
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Hello, I live in Washington and my DH and I are considering buying a home within the next 5 months or so (yeah i realize i need to do a lot). We haven't gone to see a mortgage broker yet to get qualified (working out my credit issue first). But I'm wondering is there still ways to do a 80/20 loans? The reason i ask is because we don't have a down payment. My DH has excellent credit and he's worried about having a higher interest rate if we were to not have the down payment. I guess my main question is what options are out there for first time buyers who don't have a down payment but an excellent credit score that doesn't raise the interest rate? My DH has told me if we can't get a good enough interest rate that he won't buy, but i think it's crucial to buy because of the current market conditions.

by on May. 8, 2009 at 5:04 PM
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Replies (1-5):
kn2418
by Group Owner on May. 12, 2009 at 3:27 PM

Sorry for the delayed response - I wish we had more active lenders on this group!

IMO, your best option will probably be FHA. Can you get 3% as a gift from some family? They aren't really doing too many 80/20 loans these days and most non-FHA will require you to have your own downpayment. Also check your state websites to see if any grants are available. Some states have programs that allow you to borrow against the $8,000 first-time buyer tax rebate.

Your first step should be to talk to a couple of lenders. Avoid straight banks - go with a mortgage broker. Although, Wells Fargo is a good start, if you have good credit.

Kristin
Questions about buying or selling real estate? Check out my Real Estate Tips & Real Estate Marketplace groups!
http://www.cafemom.com/group/RealEstateTips
http://www.cafemom.com/group/RealEstateMarketplace
http://bestmilwaukeehomes.com/

kn2418
by Group Owner on May. 13, 2009 at 1:45 PM

This news should be welcome for you - FHA is allowing the tax credit to be used for a downpayment!

http://www.cafemom.com/group/93270/forums/read/8860816/2009_Tax_Credit_Can_Be_Used_for_FHA_Down_Payment

Kristin
Questions about buying or selling real estate? Check out my Real Estate Tips & Real Estate Marketplace groups!
http://www.cafemom.com/group/RealEstateTips
http://www.cafemom.com/group/RealEstateMarketplace
http://bestmilwaukeehomes.com/

jenni_michelle
by on May. 14, 2009 at 5:22 PM

Thank you! This is wonderful news!

tenacity
by Group Admin on May. 21, 2009 at 6:16 AM

Hey did you see where they rescinded this or put it on hold?

(the federal program-- Missouri still has theirs) 

you rockMary Wilcox
               Realtor
Reece & Nichols
Kansas City Metro Area
816.407.5284   email me:  marywilcox@reeceandnichols.com

kn2418
by Group Owner on May. 21, 2009 at 2:13 PM

Yes, they removed the info from the HUD site a day or two after the announcement. People think HUD is trying to work out the program with the IRS.

She may be able to find a bank in her area who does it, though. I know there are a few more banks in my area doing it now.

Kristin
Questions about buying or selling real estate? Check out my Real Estate Tips & Real Estate Marketplace groups!
http://www.cafemom.com/group/RealEstateTips
http://www.cafemom.com/group/RealEstateMarketplace
http://bestmilwaukeehomes.com/

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