Chelsea
|
Under normal circumstances, yes. But due to the economy, lenders are being VERY strict about who they lend to. Also, the credit score you are referring to is your consumer credit score. It is not the same score they will pull when you apply for a mortgage. My score was 70 points lower than what I thought it would be, because I only knew my consumer score (thinking there was only ONE score). If you have never had any installment loans (i.e., car payments, student loans, mortgage) than your credit score (the one they use) will not be so good. Installment loans are ones that are paid over time, and eventually close when the entire amount is paid. Not like a credit card, which is revolving debt- pay it off and charge it over and over again.
You might be able to get a loan through a bank, but maybe not. Currently, banks are looking for a "vanilla loan" which are loans that are standard and basically perfect. Good credit score, high income, 2+ years at the same job, 20% down, etc.
After closing costs, which will probably be around $5,000, you would only have $15,000 to put down. Not 20%, work history might hurt, and we don't know your actual credit score. So, there's a chance but it's not a slam dunk.
Anyhow, you can get an FHA loan, most likely. They lend to first-time homebuyers, regardless of your credit score. Also, they only ask for 3% down, so you could always put the rest down or use it for other things. Plus, FHA loans have great interest rates- better than most banks.
FHA loans are simply loans that are backed by the government, so if you don't pay your mortgage, the bank gets the money for the government so they won't be screwed. (Then the government gets the money from you.) So you go through a bank, like normal, but apply for an FHA loan. Bank of America is one bank that does FHA loans, or you can search for local banks that do FHA. A lot of banks do. |
miracle #2 due 7/25/09
|
With that much down and you having a good credit score I don't see why you wouldn't be able to get a loan for that amount.Just be careful of variable interest rates, they can spike at any time which can double or even triple your monthly payment. Always go for a fixed rate even if it's a little higher now, there will be no surprises in the future. I totally agree with you also, paying rent is like burning money. Best of luck with your new investment. |
Homepage 
Financial
Forum 
Credit 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
