(Closed) Buying first home- 100% financing?posted 6 years ago in Home
- 6 years ago
- Wedding: June 2011
Do you have good credit? We bought a home this year with 5% down payment, conventional loan (Not FHA), we have no PMI. Since we had good credit, the bank offered us to prepay the PMI if we took a higher interest rate (.125 higher). Our mortgage locked at 3.5% which is a very good deal! Our mortgage payment is less than what it would cost us to rent a house of similar stats. The way I see it, no loss there, we could be renting and paying more.
We will stay in the house for a long time; it should be our “forever” home, 5 rooms and a walkout basement. We bought a new construction home, so we’re not expecting to have any repairs in the near future.
We didn’t have much savings; since Darling Husband had been working for just about 1 year (he was in graduate school). A 20% down payment would have been 90k for us, and we preferred to buy now while interest rates were still low. Houses are expensive here!
Our combined income is about 180k and our mortgage is about 16% (includes taxes, HOA) of our gross income. I’m not including yearly bonuses, but it should be an extra 15k. We bought it based only one 1 income (mortgage is under my name only) and I make a bit less than Darling Husband.
We’re not housepoor at all, our combined income is pretty decent if I can say so myself, we just had not big savings, life is not perfect.
While it’s always best to put a 20% down payment, every situation is different. Talk to a lender, they can run different scenarios for you. I didn’t know there was an option to get a conventional loan and no PMI until the bank offered us that option. You won’t know what you qualify for unless you talk a loan agent.
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