How much interest rate would I get on my mortgage loan and how much would I pay monthly given my situation?

Deal Score0

I am a 24yo med student in Chicago looking to buy a condominium. As a student, I have no steady income but do have around $ 30,000 available for a 10% downpayment. My credit score is 760. Can I get a mortgage with a reasonable interest rate given my credit score and lack of steady income and what would that rate be? I plan on purchasing a condo and renting it out for 2-3 years and using the rent to supplement monthly mortgage until I have a consistent income high enough for me to move-in myself. What steps must I take to fulfill my plan of first time home ownership?

4 Comments
  1. Reply
    W. E
    February 13, 2011 at 4:12 pm

    Your credit is good – the income is the problem – You could go “stated” income – With a stated deal, the Broker computes a income rage in for your type of job. The underwriter calls and verify’s your job – but does not ask for income from your employer. You may also look into interest only for 5 years at a fixed rate. This will lower your payment, until you are done with college – or you can get a fixed rate for 30 years, you will get a good rate – but going stated, the rate will be slightly higher.

    There are also djustable loans, option arms (where you pick the payment, from 4 payments, including interest only). And as I mentioned eariler, the Interest only give you a lower payment, but nothing is being paid on your home. Some self-employed ppl like the payment options, in a lean month when money is tight., they can pay a lesser amount

    Decide on how much you want to spend, if you want to escrow the taxes and insurance. Say the taxes are 1200 a YR and insurance 800 a year (just an estimate, ok) That is 2,000 a year divided by 12 = 166.66 If you paid 1,000 a month now – (166.66) your P/I Principle and Interest would be 833.34. Now you decided on the price range you are looking into. If you have great credit, a 1 loan at 130,000 at a rate of 7 percent over a 30 year time would be 864.89 – This is just a estimate – ok –

    It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help – especially if the home is thru a realitor, and the seller has to pay the realitor their fee which runs from 2-6 percent of the selling price, and you ask for 4-5 percent toward closing cost -assistance) Follow me so far??

    Talk with a broker, a broker underwrites for many company’s (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a “hard” pull and it drags down your credit score.

    By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). This will tell you the up-front closing cost (etc) associated with your loan. This is a estimate only – not the final – but it does help you figure things out.

    Good Luck, and if I can help in any way check out my web site, for links to all the credit reporting agency’s and other useful information.

  2. Reply
    daniel r
    February 13, 2011 at 4:37 pm

    first thing you need to do is consult with a mortgage lender at your bank. they should be able to answer most if not all of your questions. then find a good realtor to help you get the best deal. the realtor can also help to find any first time home buyer programs you may be eligible for.

  3. Reply
    lendermark1
    February 13, 2011 at 4:52 pm

    You might want to check out FHA’s Kiddie Condo program.
    http://www.lendermark.com/fha_kiddie_condo_program.htm

  4. Reply
    Dan
    February 13, 2011 at 4:57 pm

    With a strong credit score like that you can qualify for a no doc loan, thus no documented income needed. Keep in mind this type of loan does come with a slightly higher interest rate. If you have any further questions email me tadgeman@yahoo.com.

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