buying property in LA area

FVM3 · 04-23-2011, 05:49 PM

My wife and her family will buy a house within short and i would like to ask that how many percent down payment are they looking forward to?

NBRider88 · 04-25-2011, 02:11 PM

That depends on the type of loan you would like/can get. If you are a prime borrower (a+ credit, solid income, low debts) and would like the lowest rate available, you would put 20% down or more. If you do an FHA loan, 3.5% down is all you will need. Little higher rates and you would have to pay MIP (mortgage insurance premium) as well.

FVM3 · 04-25-2011, 08:01 PM

i never heard of FHA loan, does it request very high credit score? my wife's credit score is around 730

NBRider88 · 04-25-2011, 08:14 PM

FHA = Federal Housing Administration

Basically a Govt. loan fully backed and insured. It has been around since I believe, 1934

As far as credit score, it is more lenient than for Prime loans. They keep bumping it up, but currently you only need a 620 mid score. If you have stable income/jobs/down payment of 20%, you would want to go with conforming loan (prime) and get a better rate and no MIP. If you don't have the 20%, FHA is your best bet. Both FHA and conforming loans can be 30 years fixed

I would read up on it: You can get the basics of an FHA loan at wiki

http://en.wikipedia.org/wiki/FHA_insured_loan

anything else, just ask!

FVM3 · 04-25-2011, 11:46 PM

thanks so much for your info, my wife can get that 20% out so she will get the prime loans

NBRider88 · 04-26-2011, 07:29 PM

Not a problem. If you have any other questions or need my help, let me know.

1cleanm6 · 05-11-2011, 04:33 AM

No one here will be able to give you an answer, except a lender, there is too many variables that need to be considered.

1. FHA loan , wont be possible if its a second home, wont be possible if its not in good condition.

2. Loan quidelines have become much tougher, lot of changes about two weeks ago. You need 20% plus FULL docs atleast.

They should take some time and visit a lender and they will break everything down, and at same time let them know what they qualify for.

04-23-2011, 05:49 PM	#1
FVM3 Major General 291 Rep 5,751 Posts Drives: e92 m3, f30 328i Join Date: Sep 2010 Location: Los Angeles iTrader: (2)	buying property in LA area My wife and her family will buy a house within short and i would like to ask that how many percent down payment are they looking forward to?
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04-25-2011, 02:11 PM	#2
NBRider88 I gave her my heart, she gave me crabs 20 Rep 143 Posts Drives: 06' 330i Join Date: Sep 2005 Location: OC :] iTrader: (2)	That depends on the type of loan you would like/can get. If you are a prime borrower (a+ credit, solid income, low debts) and would like the lowest rate available, you would put 20% down or more. If you do an FHA loan, 3.5% down is all you will need. Little higher rates and you would have to pay MIP (mortgage insurance premium) as well.
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04-25-2011, 08:01 PM	#3
FVM3 Major General 291 Rep 5,751 Posts Drives: e92 m3, f30 328i Join Date: Sep 2010 Location: Los Angeles iTrader: (2)	i never heard of FHA loan, does it request very high credit score? my wife's credit score is around 730
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04-25-2011, 08:14 PM	#4
NBRider88 I gave her my heart, she gave me crabs 20 Rep 143 Posts Drives: 06' 330i Join Date: Sep 2005 Location: OC :] iTrader: (2)	FHA = Federal Housing Administration Basically a Govt. loan fully backed and insured. It has been around since I believe, 1934 As far as credit score, it is more lenient than for Prime loans. They keep bumping it up, but currently you only need a 620 mid score. If you have stable income/jobs/down payment of 20%, you would want to go with conforming loan (prime) and get a better rate and no MIP. If you don't have the 20%, FHA is your best bet. Both FHA and conforming loans can be 30 years fixed I would read up on it: You can get the basics of an FHA loan at wiki http://en.wikipedia.org/wiki/FHA_insured_loan anything else, just ask!
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04-25-2011, 11:46 PM	#5
FVM3 Major General 291 Rep 5,751 Posts Drives: e92 m3, f30 328i Join Date: Sep 2010 Location: Los Angeles iTrader: (2)	thanks so much for your info, my wife can get that 20% out so she will get the prime loans
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04-26-2011, 07:29 PM	#6
NBRider88 I gave her my heart, she gave me crabs 20 Rep 143 Posts Drives: 06' 330i Join Date: Sep 2005 Location: OC :] iTrader: (2)	Not a problem. If you have any other questions or need my help, let me know. __________________
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05-11-2011, 04:33 AM	#7
1cleanm6 Brigadier General 470 Rep 3,666 Posts Drives: M5 comp/Range/i3S Join Date: Feb 2008 Location: Earth iTrader: (7)	No one here will be able to give you an answer, except a lender, there is too many variables that need to be considered. 1. FHA loan , wont be possible if its a second home, wont be possible if its not in good condition. 2. Loan quidelines have become much tougher, lot of changes about two weeks ago. You need 20% plus FULL docs atleast. They should take some time and visit a lender and they will break everything down, and at same time let them know what they qualify for.
	Appreciate 0 Quote