Shanedorf Posted October 16, 2020 Share Posted October 16, 2020 18 hours ago, Counselor said: What lender do you suggest? I've worked with a trusted mortgage broker over the years, they have access to multiple lenders and programs and can find good deals for your specific situation. You can also reach out directly to a bank or credit union and see what they have to offer based on your credit score, payment preferences and type of home you are seeking. There isn't one universal, correct answer here. Quote Link to comment Share on other sites More sharing options...
Forge Posted October 16, 2020 Share Posted October 16, 2020 So I don't work with FHA (direct competitor) or VA loans. Everything I do is Conventional. There are all sorts of loan programs that can help you out though, @Counselor. Roughly 80% of the country puts down less than 20% on their home. It's just not something that is feasible for a lot of people. It took buying and selling 4 homes before I had that sort of up front cash, tbh. I would start with CalHFA and work from there. A lot of times, they just include silent seconds that are forgivable after a period of time (typically 5 years). You probably will have private mortgage insurance, but HFA loans also typically get a discounted rate (a typical coverage requirement on a 97% loan is 35% mi coverage; on a FTHB, HFA loan that is a 97% ltv / 100% cltv, it's only 25%; at 95% ltv, it goes from 30 to 18, and at 90% it goes from 25% to 16% typically). Different state housing authorities have different programs, so I can't say for sure what Cali offers. I would also look at lenders and their specific programs. Some may offer something like an 80 / 95 first & second program that doesn't require PMI. Basically, you have to put down 5%, they do a first mortgage at 80% with subordinate financing via an equity line or Fixed rate mtg at another 15%. So you have 80% loan to value with 95% combined loan to value. Agency only requires PMI when the base LTV is over 80%. There are credit unions that still allow for 100% loan to value programs. Risky if you're buying at the top of the market, but credit unions won't gouge you as bad on the rate. I would look at credit unions in general for various programs and best terms. Bank of America has the america's home grant that they offer. Gives a lender credit of 7.5K that they can combine with other programs and options. Though I'll be honest, BofA is a pain in the butt with regards to their underwriting as well and they may document the hell out of you. They have several overlays that aren't required elsewhere. Quote Link to comment Share on other sites More sharing options...
naptownskinsfan Posted October 17, 2020 Share Posted October 17, 2020 At what point would you consider refinancing, and honestly, how often? It is something I am considering, but don't know the ins and outs of it. I don't have any other debt to really tie into it- I've got all of my credit cards paid off- so the only thing that would attract me to it is either paying this off earlier or working down the monthly payment. I have no problem making my current payment either, and I've owned the house for 3.5 years. Quote Link to comment Share on other sites More sharing options...
MWil23 Posted October 17, 2020 Share Posted October 17, 2020 18 minutes ago, naptownskinsfan said: At what point would you consider refinancing, and honestly, how often? It is something I am considering, but don't know the ins and outs of it. I don't have any other debt to really tie into it- I've got all of my credit cards paid off- so the only thing that would attract me to it is either paying this off earlier or working down the monthly payment. I have no problem making my current payment either, and I've owned the house for 3.5 years. Now is the perfect time! I just refinanced mine. I’d recommend looking at a calculator, but if you refinanced to a 30 year at the current rates, you’ll likely save a ton. I also just had a friend refinance to a 20 year and knock a ton of years off his house and keep essentially the same payment each month. 1 Quote Link to comment Share on other sites More sharing options...
Shanedorf Posted October 21, 2020 Share Posted October 21, 2020 On 10/17/2020 at 5:32 AM, naptownskinsfan said: At what point would you consider refinancing, and honestly, how often? The current rates are historically low, little chance there will be a better time to do it than right now- You should be able to get a lower monthly payment and lock it in for the next 30 yrs. Good luck Quote Link to comment Share on other sites More sharing options...
holt_bruce81 Posted October 22, 2020 Share Posted October 22, 2020 Man we put an offer on a beautiful house over the weekend. $20k over asking price and we got rejected. Our 4th rejection during this process. It’s pretty frustrating because sometimes with an FHA loan it doesn’t feel like we have a chance against a conventional loan. I dont Know though, maybe I’m wrong. Are there any tips to making you stand out as a buyer? We’ve wrote letters to the seller on two homes hearing that helps. Quote Link to comment Share on other sites More sharing options...
CWood21 Posted October 22, 2020 Share Posted October 22, 2020 4 hours ago, holt_bruce81 said: Man we put an offer on a beautiful house over the weekend. $20k over asking price and we got rejected. Our 4th rejection during this process. It’s pretty frustrating because sometimes with an FHA loan it doesn’t feel like we have a chance against a conventional loan. I dont Know though, maybe I’m wrong. Are there any tips to making you stand out as a buyer? We’ve wrote letters to the seller on two homes hearing that helps. Honestly, I'm not sure there's much you can do tbh. The market is hot right for sellers, and the houses that we looked at were sold within weeks of when we looked at them. We ended up going with a new build. Quote Link to comment Share on other sites More sharing options...
scar988 Posted October 23, 2020 Share Posted October 23, 2020 On 10/21/2020 at 8:43 PM, holt_bruce81 said: Man we put an offer on a beautiful house over the weekend. $20k over asking price and we got rejected. Our 4th rejection during this process. It’s pretty frustrating because sometimes with an FHA loan it doesn’t feel like we have a chance against a conventional loan. I dont Know though, maybe I’m wrong. Are there any tips to making you stand out as a buyer? We’ve wrote letters to the seller on two homes hearing that helps. The type of loan doesn't really matter. As long as you're pre-approved, you're good. FHA loans vs. Conventional vs. VA doesn't really change anything from the bank or seller's side of things. The difference you might be dealing with is cash vs. Mortgage. That can change things for a lot of people. Quote Link to comment Share on other sites More sharing options...
bigbadbuff Posted October 23, 2020 Share Posted October 23, 2020 On 10/22/2020 at 1:03 AM, CWood21 said: Honestly, I'm not sure there's much you can do tbh. The market is hot right for sellers, and the houses that we looked at were sold within weeks of when we looked at them. We ended up going with a new build. How much more money do you typically need upfront to build vs buying an existing home? Quote Link to comment Share on other sites More sharing options...
MWil23 Posted October 23, 2020 Share Posted October 23, 2020 19 minutes ago, bigbadbuff said: How much more money do you typically need upfront to build vs buying an existing home? Most construction loans here in the Midwest ask 10% down for conventional. They appraised the land I bought in cash and used that as my down payment. Quote Link to comment Share on other sites More sharing options...
Tetsujin Posted October 23, 2020 Share Posted October 23, 2020 The buyers of my former home got so much financial assistance with the down payment, they actually made money at the closing table. Quote Link to comment Share on other sites More sharing options...
bigbadbuff Posted October 23, 2020 Share Posted October 23, 2020 10 minutes ago, MWil23 said: Most construction loans here in the Midwest ask 10% down for conventional. They appraised the land I bought in cash and used that as my down payment. Gotcha. Would be nice, but as a first time home buyer I wouldn't be able to do that. Hopefully the market shifts next year so I can actually buy a house, because I'm not going to be paying current prices. Quote Link to comment Share on other sites More sharing options...
MWil23 Posted October 23, 2020 Share Posted October 23, 2020 13 minutes ago, bigbadbuff said: Gotcha. Would be nice, but as a first time home buyer I wouldn't be able to do that. Hopefully the market shifts next year so I can actually buy a house, because I'm not going to be paying current prices. There are a whole sort of construction loans available though. That was just my personal example Quote Link to comment Share on other sites More sharing options...
bigbadbuff Posted October 23, 2020 Share Posted October 23, 2020 13 minutes ago, MWil23 said: There are a whole sort of construction loans available though. That was just my personal example Hmm something I might want to look into then Quote Link to comment Share on other sites More sharing options...
MWil23 Posted October 23, 2020 Share Posted October 23, 2020 Just now, bigbadbuff said: Hmm something I might want to look into then In a “normal year”, you pay an additional 10% to build a home, but we didn’t pay any extra with the market the way it is. Ironically our house is worth a lot more now than when we built it/when they finished in April Quote Link to comment Share on other sites More sharing options...
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