Posted on: 30th Nov, 2009 05:54 pm
My husband and I really want to take advantage of this market and purchase our first home. The problem is that every agency that offers assistance requires us to meet income guidelines. Essentially it boils down to the fact that we make to much money to get help and not enough money to help ourselves. All of the agencies require us to make less than 50K. We make more, but our debt to income ratio is really out of whack. I have gotten a lot of things in order all that is pretty much left is student loans.
Any advice????
Any advice????
There are plenty of options for first time homebuyers . If you make to much for a grant program how about doing seller paid closing costs to offset upfront out of pocket money .There is not an income limit on FHA loans . What is the DTI like? :D
Hi hopefulbuyer,
I do not think the 'seller paid closing costs to offset upfront out of pocket money' still exists. The state housing agencies are the only source of zero-down mortgages. But they have their own set of rules regarding the income limit. The borrower has to meet the income limit to qualify for such first time buyer programs. Apart from state housing agencies, VA and USDA still offer 100% financing. But for any other type of mortgages, you need to put down something.
I think FHA mortgages are quite popular with first time buyers as they require a minimum of 3.5% down payment, which is comparatively low. FHA does allow a higher DTI ratio of even 41% or more. The credit requirement for FHA loans is 620, which again is lower than what most other conventional loans require.
I do not think the 'seller paid closing costs to offset upfront out of pocket money' still exists. The state housing agencies are the only source of zero-down mortgages. But they have their own set of rules regarding the income limit. The borrower has to meet the income limit to qualify for such first time buyer programs. Apart from state housing agencies, VA and USDA still offer 100% financing. But for any other type of mortgages, you need to put down something.
I think FHA mortgages are quite popular with first time buyers as they require a minimum of 3.5% down payment, which is comparatively low. FHA does allow a higher DTI ratio of even 41% or more. The credit requirement for FHA loans is 620, which again is lower than what most other conventional loans require.
seller assistance certainly still exists, up to 6% of purchase price, to be used for closing costs and prepaids. down payment money still must come from a buyer. that could mean a gift from a relative, so it's actually possible someone could come in to a transaction with no money of his/her own in reality.
it's true that state agencies administer their programs with strict guidelines, and there is no wavering.
it's true that state agencies administer their programs with strict guidelines, and there is no wavering.
