FHA Down Payment

Is it time for you to buy a home? Colorado Home Mortgage There are things to think about before buying a home other than whether you have enough down payment. But this days down payment is a big issue. Speaking of down payment, many first time home buyers look at how much they need down and try to figure out whether they can afford (or qualify for) what the mortgage payment will be. The minimum for down payment today is 3%. This is only if you are using a FHA loan. Or a federal housing administration type loan. This is a government back program that helps first time buyers get in to a house. This is just the minimum for a down payment. The program might even require you to put more that this down. This cases come up it there are other problems with the loan. Some of this problems might be credit score, monthly income, credit history, time on the job.
A good example of this is that your debt ratio is 45%. The is casing you not to qualify for this particular loan program. One thing you could do is put more money down on the house. In this example you would put 10% down on the property. Now that you have put that huge chunk of change on the property your debt ratio has come down to a respectable 41%. Now that is 41% you can qualify for the loan. I know that is a lot of money to put down but it was what was needed to get you in the house.
But keep in mind the other option to a FHA loan right now is a conventional loan. A conventional automatically requires you to put 10% as a down payment. Under this loan program the minimal money to put down on property is 10 %

Colorado Home Mortgage

Colorado Home Mortgage

Colorado Home Mortgage

Here are some hints when buying a foreclosed home. My first rule is make sure you are getting a good deal. That means, you are getting a home that is well under valued.. The home might be 60,000 below the appraised value but you might need to put in $100,000 to get it back in shape. Be careful before you buy. Make sure you get a proper inspection on the property. If the property does need repairs, get some bids from some contractors. Make sure you get a least 3 bids on it to give you a good idea what its going to cost you. After you get the bids double it. It almost always cost more than you think its going to cost.

Make sure you have enough money in reserve if you are buying as an investment. Things are all ways going to cost more than what you think its going to cost. If you plan on renting it out once you purchase it. Make sure you have enough money in reserve to pay if you don't get any renters in the home. All so if you are figuring out home much your are going to rent the property for make sure it is twice the amount of your mortgage. You don't want to get in to one of those house that the rent just pays the mortgage. The reason you don't want to do this is because something is going to break. If its not your pipes it will be a door needing to be replaced. Or better yet it might need a new roof. If you are not putting a little money aside every month, this could cost you a lot of money in the long run.

If you just bought a home and it has been winterized in a cold climate. All most all the time you are going to have a busted pipe. Even if you get it inspected and they say everything is ok. You can expect a busted pipe. Just expect that its going to happen. This is where the reserve of money is going to help. Its only going to cost a few hundred to repair. Just don't get the water turned on and not be their for a few weeks because you will have some major problems if that is the case. Make sure you inspect everything when they turn the water on
Colorado Home Mortgage