Looking for Good Lender

rnatalli · Joined: 22 Oct 2007 Posts: 4

Hi,

My wife and I are in the process of looking for a home and we're interested in 100% financing. We've been to BOA and they said at least 5% down is needed. We could come up with the 5%, but would prefer not to at this time as it would eat up our contingency fund. We've been looking at 80/20 loans, but I've read that there are real and fake versions of this loan. What lenders have reputable 80/20 loans or any other programs we should look at? Our info is below. Any help would be appreciated. Thanks!

State: MA
Loan amount: $300k give or take $25k
Property Type: Condo
FICO Score: 750 to 800 (myself and spouse)
Income: $60K (me) + $25K (spouse) = $85K Total

I should also mention that we expect our income to exceed $100K in a matter of months and if I understand correctly, 100% + PMI might not be a good option as we would not be able to deduct PMI anyways.

jrhartman · Joined: 01 Apr 2007 Posts: 107 Location: Michigan

80/20 Loans are getting harder and harder to come by lately. I would probably recommend doing one loan, 100% financing. I know that you can obtain those loans with lender paid PMI, even up to 100%, as we offer them.

Why did BOA say that you would need 5% down?

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

Because they went to a banking center and the personal banker they spoke to didn't give them the opportunity to talk with a mortgage loan officer. The one challenge working for Bank of America is that there are multiple people that can offer a mortgage loan but not all loans. The banking center staff have the most restricted "menu" if you will.

Mortgage Loan Officers for Bank of America can and do offer 100% financing options....

rnatalli · Joined: 22 Oct 2007 Posts: 4

I think Ken hit it on the nose. Anyways, I'm thinking of investigating 80/20 through Countrywide and GMAC as well as 100%+PMI through Fannie Mae or Freddie Mac. I'm fairly certain the RE market will rise again here in MA over the next 5-6 years. I'm not certain we'll stay in the same place for 10 years or more. We do plan to refinance when the interest rates bottom out in the future. It seems the 80/20 is still the better option as things stand now. What do you think about the lenders I've mentioned? Thanks for the help.

jrhartman · Joined: 01 Apr 2007 Posts: 107 Location: Michigan

rnatalli wrote: It seems the 80/20 is still the better option as things stand now.

I am curious as to what benefit would an 80/20 have over a 100% Lender Paid PMI loan?

Countrywide is a very solid lender, I am not sure that they currently offer the 80/20 that you are looking for though....most companies are sticking to Freddie/Fannie paper right now.

rnatalli · Joined: 22 Oct 2007 Posts: 4

jrhartman wrote: rnatalli wrote: It seems the 80/20 is still the better option as things stand now.

I am curious as to what benefit would an 80/20 have over a 100% Lender Paid PMI loan?

I've been running the numbers and it seems the 80/20 has an advantage. My wife and I will likely move within 5-7 years and it seems that from a financial standpoint, the PMI option makes more sense to people planning to stay in the place they're buying for a long time.

jrhartman · Joined: 01 Apr 2007 Posts: 107 Location: Michigan

rnatalli wrote:
I've been running the numbers and it seems the 80/20 has an advantage.

I think you are not reading my statement properly. There are 100% financing loans where you do NOT pay PMI.

You should really consult with a mortgage specialist and go in there with an open mind instead of telling them what you want. They might be able to put together a better solution for you, but you have to be willing to listen. There might not be a better way, but you seem to have your mind made up on an 80/20 even though you clearly don't have enough information decide if that is the best option for you let alone if you can even find a second mortgage to take you to 100%. I am trying to help show you a better alternative, but you have to be willing to listen/take advice when you ask for it. Otherwise you might as well save everyone's time, including your own, and not ask in the first place.

rnatalli · Joined: 22 Oct 2007 Posts: 4

I misunderstood what you were saying. There's no reason to be rude or impatient. I'm very open-minded and will consider any options presented and I have every intention of acting on your advice, however, I will not seek any further advice from this forum as I don't want to waste anyone's time by simply being new to this. Thank you to those who had patience and responded. Good Day.

TO MODERATOR: Please delete this account when you have a chance. Thank you.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

We don't delete accounts unless they horribly violate the rules.

JR wasn't being impatient, he was merely saying that if you're going to come to a group of professionals for advice, expect that they're probably trying to give you the best advice possible for your situation.

We don't promote random 'fly-by' people to just stop in and say "Hey, I can do your loan" here. The people that are here are the people that do this because they enjoy what they do, and enjoy helping others to achieve the good ol' "American Dream." That's it.

His point was that there may be a better option available, and you really need to sit down with a professional and hash out your details on paper.

RedRaider · Joined: 30 Oct 2007 Posts: 1 Location: Austin

I recommend to anybody loan shopping to just Google your city for mortgage brokers and shop with your local mortgage brokers. Just like shopping for anything it's best to get 2-3 different prices, just be careful you are comparing apples to apples, not just interest rates.

uptight mortgage guy · Joined: 23 Nov 2007 Posts: 30 Location: WV

Please remember folks, we are representatives of our industry. And that was not a good representation. You can puff out your chests and defend your statements as you wish, but remember, perception is reality. :?

sithburns · Joined: 12 Nov 2007 Posts: 20

With your credit scores you should NOT have a problem getting 100% financing. Fannie Mae now allows for lender paid MI with credit above 620 on their 100% program.

You should have a fairly favorable interest rate as well since your under the conforming loan limit.