Acquiring a Mortgage with my Situation:

Yarrr · Joined: 05 Sep 2007 Posts: 3

State: Virginia
Loan amount: $180,000
Property Type: Condo / Townhouse
FICO: 665+
LTV: 100%

I am a young IT professional with a lease ending in approx 6 months, and around this time I would like to purchase a condo / small townhouse in my area.

Quick Rundown:
FICO Mid: 665 (This was checked last about 3months ago; since then debt has been reduced as well as two loans paid off).

Monthly debts: $300 cumulative. Installment loans only, no revolving debt.

Current Salary: $42,000 with an expected raise to $45,000 in the next two weeks.

About $6000 available for closing costs, and points.

What I am looking to get:
I am seeking a 100% mortgage in the $170,000 - 180,000 range for my area (Northern VA)
With my current salary, my monthly gross is ~$3500.

Any thoughts on making this happen? My DTI will run a bit high (up to about 41 - 43% depending on the mortgage at hand), but otherwise my numbers seem solid from what I've read.

I have changed jobs in the last two years, but I do have documentation to show that I've held steady employment more or less, with consistent increasing salary in the same field.

Any input very welcome!

ken(TX) · Joined: 23 Sep 2005 Posts: 184 Location: Dallas, TX

While there is tightening in the 100% financing programs, you should be ok with what you have shared here. You should also look at Community Reinvestment Act loans as your income will be within income limits for those kinds of programs. I can't say that for sure without you sharing what county you are looking to buy in but $45,000 annual income is within limits in most of the coastal parts of the country.

good luck.

Yarrr · Joined: 05 Sep 2007 Posts: 3

ken(TX) wrote: While there is tightening in the 100% financing programs, you should be ok with what you have shared here. You should also look at Community Reinvestment Act loans as your income will be within income limits for those kinds of programs. I can't say that for sure without you sharing what county you are looking to buy in but $45,000 annual income is within limits in most of the coastal parts of the country.

good luck.

Prince William County VA. 2004 Median Household income was $75,000.

I am in the process of getting my documentation together (past W2s, paystubs, etc), as well as a general feel for where I stand before I approach a Loan Officer really. (that and I'm not QUITE ready to buy).

ken(TX) · Joined: 23 Sep 2005 Posts: 184 Location: Dallas, TX

Prince William County's 2007 area median income is $92,600. 80% of that number is $74,080 and since you are below that you would qualify for any Community Reinvestment Act driven loan.

I encourage you to consider applying soon and getting pre-approved so that you have a loan already in process with a lender. That way if guidelines change further and 100% financing options change you will at least be good through your pre-approval expiration date. That gives you time to shop and consider a home loan purchase without waiting and applying later after guidelines may have changed.

Yarrr · Joined: 05 Sep 2007 Posts: 3

ken(TX) wrote: Prince William County's 2007 area median income is $92,600. 80% of that number is $74,080 and since you are below that you would qualify for any Community Reinvestment Act driven loan.

I encourage you to consider applying soon and getting pre-approved so that you have a loan already in process with a lender. That way if guidelines change further and 100% financing options change you will at least be good through your pre-approval expiration date. That gives you time to shop and consider a home loan purchase without waiting and applying later after guidelines may have changed.

Thanks, that is an interesting thought to consider. What is the general timeframe in which a pre-approval is valid for?

Thank you for the input so far!

ken(TX) · Joined: 23 Sep 2005 Posts: 184 Location: Dallas, TX

It will differ from lender to lender and so I can't answer that exactly. I know our pre-approvals are good for 90 days without a contract and 120 with.

That's your first question to ask the loan officers you interview.