Home Loan Situation

[Larry T. Spider]

Im trying to figure out what the lending situation will be like at this time next year. I know that things are changing rapidly and that a year is a long way off.

We will be wanting about a $200,000 loan and will be putting 10% down. Our combined income is about 100K. Both have good credit but it will be our first home purchase.

Ive heard that most people will need 20% down in the future because of the credit crunch that is going on. That would be pretty hard to believe considering they have been giving houses to people for 0 down. But, I understand that times have changes. Any insight will be appreciated.

 

[Longhorn_Fan68]

We applied for and received pre-approval for an FHA loan at the county max which is ~$288k. We make about $90k combined and have decent credit. One nice thing about an FHA loan is you only have to put down 3% (which will jump to 3.5% soon). Next year the market will probably be better, but who the **** knows at this point?

 

[chango]

FHA will be perfect for you. Moving forward, big down payment will be for stated income, and then sub prime when it comes back. 80% loan to value subprime loans outperform most prime loans even now.

 

[Longhorn_Fan68]

Oh, and we got a rate of 5.5%, which shocked the **** out of me.

 

[Bernard]

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[madscientist]

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