How hard is it to get a loan for a $240K home ?
 

Me and my wifey always admired this house -
http://www.godsthumbs.com/house.jpg
Now we see that it's for sale for $239,900 and are considering jumping at it, but I worry how tough it is to get a bigger loan like that.

I currently don't have any debt at all and I own a mini-van, truck, camper, $30K house, and also an $18K piece of land, so I do have a bit of collateral.

As far as a down payment goes, my high tax bill kinda fucked me a bit, but I'd be left with $40-$50K to put down on it.

As far as my credit score goes, it got hurt a bit in the past before I was making the good money, now I have to rebuild it, I'm like in the 600-620 range.

I've never dealt with a house loan before, so I'm not sure if the bank would laugh at me or not, what do you think ???

The house is the collateral. Even though your FICO scores suck with 40-50k down you won't have a problem getting a mortgage at all.

The problem may lie in getting a lower interest rate. Go with a broker they can shop for the best rate.

thats a nice looking house, wow cant believe its that price, where is it at?

House like that in L.A. is like 800k minimum.

I don't know much about loans but putting 40-50k down will really help out.

Yea man, give a loan broker a call... you'll never know unless you give it a shot

I got the mortgage on my place when I was 21 with 0 credit (no bad scores but nothing built up)

I did have to put a nice chunk down though, either way if you can prove you can make the monthly payments you should be good to go

They'll do what they can to get you in, they dont get paid unless you get the loan so its worth it for you and them

Nice house.... you've got assets, so it shouldn't be a problem

600 is the minimum score for a mortgage.....but the max for FHA loans is 178K or something like that.

Its not so expensive that you need a jumbo loan....you'll probably get a jacked up rate but if the house appraises for the selling price and you put 40-50K down it should be doable.

Thanks :) We live in Houghton, Michigan, which is a smaller area 4 miles North of Green Bay, Wisconsin. Thank God I'm not from the city :)

Thanks for all of your replies, they make me feel good about jumping out and getting the loan. I'll have to make some calls :)

depends on where you live FHA raised the max loan amount to 234,150 by me in chicago years ago, 580 minimums for FHA, Conventioanl is 620+ Dont get stuck with a subprime, unconventional lender with 2/28 or 3/27 loans. All those other assets dont mean anything. They will list them on the app but there nothing to talk about. How much you have in the bank and for how long is gonna be another stumbling block. Some other things to consider :2 cents:

Good point...FHA loan limits are based on your area....here they're 178K

But I'd guess that they're low in his area if that house is only 240K

Whatever you do, don't get an ARM....this has to be the worst time for one of those. Take the fixed rate.

The credit score seems to be your biggest issue. You can always go stated income, 5% down, and get in that house no problem. Get your credit score up past 650 though...You will still get a higher rate but you should be able to get into it.

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With 20% down, plus the fact that you already own property, it should be fairly easy to get a mortgage and a good rate. Unless you have bankruptcies or something.

40-50k down you will qualify no problem. :thumbsup

Its sounds a great deal go for it .Good luck.

yeah, putting down 20% helps you out a long way when gettng a mortage.

jeez 240.000USD, we have only the basement for 240.000 in The Netherlands :(

With mortgage interest rates as low as they are right now.Put as little into it as you can get away with.The house will appreciate at a minimum of 4% annually and you can take advantage of the mortgage interest writeoff which will help your current tax predicament quite a bit.

Slick,

You won't have a problem at all. Based on your income and the fact that you can prove easily that you can make the payment. You have your home you are in now that you will be able to sell and hopefully pull some additional cash out of that. Either way pulling a 200k loan which is what you are really talking about with your down payment. You are looking at around a 1000 dollar a month payment. Easy!

Nice looking house BTW, good luck getting it. :-)

Having somebody with good credit (and impressive) to vouch for you can do wonders.

Nice house

40%?

you only need 20% to walk into a nice 15 year loan

Yep, both my homes were 20% down and 15yr.... don't do a 30, you'll get caught paying PMI

I think it is easier to find a $240k loan than it is to find a $240k home

You should have no problems getting a loan. If 1 lender declines you keep trying. I just closed a loan the other day for a guy with much less than you for $320,000. Best of luck :thumbsup

:thumbsup

My thoughts exactly. I just got a 250k loan with no problem at all...granted my credit was quite a bit higher.

Regardless, 20% down will do you wonders! Good luck my friend. :thumbsup

That 20% down payment should help a lot.

http://images.lendingtree.com/mls/tr...4318333_00.jpg

Look what $500,000 will get you on Long Island

http://www.realestate.com/axx/applic...homeid=6195632

If you were in chicago i could get you approved easy.

So im guessing it should be easy there also.

They won't give you a loan in Southern California for $240k. No way, no how... wanna know why? Because there's nothing to buy for that cheap!!! I wish I was kidding. At least out here they hand out half mill loans like they were promotional items. I don't see any problem getting half that.

That is the truth. Just did the signing yesterday for a home and the interest rates are starting to CREEP UP!
So if you're thinking, act NOW if you are serious. Also, interest only 5-7 year arms are VERY popular right now!

Haven't I seen you post before that your income is $15k a month? Or was that $30k a month? You'll probably find the banks falling over themselves to get your business.

The banks here are prepared to lend crazy and completely impractical (I would almost say irresponsible) amounts, where the minimum repayment can end up being 50-60% of your gross income. :helpme

:1orglaugh :1orglaugh :1orglaugh

you don't even need to put money down
we got a $150,000 loan with $0 downpayment, we had the money in the bank account and they seemed pretty satisfied with that

in ny you could get a place for 500k and still have to carry a gun for protection

that house is crazy cheap. where is it ?

Ditto over here, on a 5 year ARM. I'm not planning on living there past 2 years, so this was a solid option for me. :thumbsup

There is no real minimum for FHA. We've got some approved down to 520. There isnt a minimum for Conventional either, though its not as easy to get an automated as FHA is.

Subprime, you can go down to 520ish without a problem.

With 10% down, you can get that house, without a problem.

Cheers.