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OK, finally


divemedic
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I am looking for a house. After finally paying my CC's off, I think I am ready. Here are my stats:

Income: $82,500

FICO's: TU 753 EX 708 EQ 722

One outstanding medical collection (DOLA 5/2001) for $21

One paid medical collection (DOLA 10/2000)

No CC debt, credit limit $33,000 on 5 cards

One installment loan $414 monthly pmt, $7300 outstanding

I want to get a house with a PITI of about $1900. I don't have anything to put down, I used my spare cash to pay off all other debts. I am a first time home buyer.

Is this doable? What rates can I expect? How much house can I afford? The average price here for a home is about $220,000.

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I don't live in Florida so I can't help you there. I can tell you as a first time home buyer, there are programs to help you with finances. I have a friend who just recently purchased a condo in Bradenton, Florida and closed two weeks ago. She used those programs to help her as she is disabled and has no money. I would suggest looking into that. I believe the program is called, "SHIP". Also as a first time home buyer, check to see if there are mortgage credit certificates available. If you find one for your state, make sure you have it processed with your mortgage lender "before" you close. I had a friend who forgot and they will not consider it after closing. Just a few tips to pass along...hope it helps! xFlowersx

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I am looking for a house. After finally paying my CC's off, I think I am ready. Here are my stats:

Income: $82,500

FICO's: TU 753 EX 708 EQ 722

One outstanding medical collection (DOLA 5/2001) for $21

One paid medical collection (DOLA 10/2000)

No CC debt, credit limit $33,000 on 5 cards

One installment loan $414 monthly pmt, $7300 outstanding

I want to get a house with a PITI of about $1900. I don't have anything to put down, I used my spare cash to pay off all other debts. I am a first time home buyer.

Is this doable? What rates can I expect? How much house can I afford? The average price here for a home is about $220,000.

You should be good to go to buy a home and you should be eligible for the some best rates and terms out there. I am not sure about the medina income for your area but it would seem you may make too much money for a Mortgage credit certificate program or a bond money loan. You should be able to get your loan done within your payment range. Have you gotten any Homeowners Insurance quotes? You could be paying $150/mo -$200/mo for HO. At least that has been my experience with FL loans. You shoudl be able to get rates in the low 6's and and in the 8's on a second if you do a 80/20 or 75/25 <- which may come out lower due to less costs to do an a 75/25 rather then a 80/20.

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  • 3 weeks later...

The tax rate for the remainder of the calendar year is inherited by the buyer. Next year in 2008, the 'save out homes' cap is lifted and you will have to multiply the assessed value (less homestead exemption) times the millage rate.

Don't get fooled by the low property taxes that the current owner may have at this moment. If, for example, someone has lived in a home since 1992 then the 'save our homes' cap has limited real estate tax increases to 3% per year.

Citizens, the 'insurer of last resort', will most likely be the u/w for properties in Florida. You can call an insurance agent to get an estimate or maybe to see if there is another u/w other than Citizens. Insurance agents hate Citizens as much as the insured. They require twice the amount of paperwork and pay the insurance agent less $$.

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Question:

I want to keep my PITI around $1800. How can I easily find out what the insurance and taxes are gonna cost, so I know how much house I can afford.

You should be able to get a GFE from any lender.

A good rule of thumb used to be around 1% of the total cost of the home. So you'd be looking at 180K homes. Depending on rates, downpayment and tax rates (and don't forget association/community fees), you'll probably be looking at something in the 210-240K range.

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Where'd you come up with the $1800 figure?

It's less than 1% generally, but not a lot less.

a $269k house here costs about $2225 full monthly payment, with a sub 6 interest rate and an almost 3% tax rate, or about .85% of the loan.

lower taxes would lower that %. Higher rate would increase it.

A GFE should give you a better idea.

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I got a good faith estimate from a broker for the house I want:

30 year fixed rate at 6.375 for $230,000

P&I 1440

taxes 265

insurance 150

total: 1855

What gets me is I think I can do better on the rate. They pulled my credit and got: 754TU 679EX 679EQ

That paid collection is killing me. Is there anyway a lender will do better than that? I mean, come on! It is a 6 year old paid medical collection for $84. Why should I pay THOUSANDS extra for a house because of that?

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"Depending on rates, downpayment and tax rates (and don't forget association/community fees), you'll probably be looking at something in the 210-240K range."

I was right :)

based on your scores though, I think you're getting a good rate.

from myfico.com for Florida

760-850 5.776% $1,756

700-759 5.998% $1,798

660-699 6.283% $1,853

When does that collection fall off? I'm not gonna ask if you've done everything possible to get it removed because it's YOU and I know the answer already.

If you buy now, you could refi after a year, but no idea what rates will be in a year. And you could wait for this to fall off on it's own, but again, no idea what rates will be.

You have 2 other possible options:

1) This is a paid collection. I assume you have proof of payment. You might be able to find a broker willing/able to do a rapid rescore. Based on proof of payment, if they could get this removed, at least long enough to do a rapid rescore, your score would jump and you would get a better rate.

2) Naca.com. based on your credit, you're not their target audience, but if the house you want is below their cap for your area, you could get a 5.35% 30 year fixed, no closing costs loan today. It's worth investigating. You may not necessarily like the 'politics' of it, but for that much money, sometimes it's good to grin and bear it.

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  • 4 weeks later...
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