I have a few mortgage questions?

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I recently talked to someone at Ditech about getting a home loan for FHA,the man I spoke to said for an FHA loan you have 2,000-3,000 dollars in the bank and be 100% debt free to get one. Is that true? I’ve never heard of it being that way. Has anyone had any experience with being a first time home buyer and a single parent wanting to buy a home? I want to buy a house instead of renting my life away. If anyone has information,please let me know. thanks.

  1. Reply
    J P
    May 2, 2011 at 6:45 am

    That’s generally not true for FHA loans, but right now lenders are being very careful given the economy and the housing bubble/mismanagement that caused the current state we’re in. Talk with a mortgage broker, and find out what you qualify for because odds are you’ll qualify for something though it might not be a great option. Decide whether renting a little while longer, to get rid of debt or save some more money or whatever, is a good idea and make your decisions based on that.

    Shop around with different mortgage companies/banks because they will offer you different options. Take the best option that is best for you, even if it means waiting a little while to make the purchase.

  2. Reply
    May 2, 2011 at 6:51 am

    There are guidelines set when a bank process your loan for an FHA mortgage. Their fico requirements are not stringent, they will go down to a 561. There are downpayment requirements for an fha loan, and these types of mortgages are “full documentation”, meaning they pay attention to your “ratios”, or what percentage of your income goes to your bills and monthly housing expense. Don’t speak to Ditech. Go to a local mortgage BANKER (not broker) and only selected mortgage companies can do fha. They will also explain other 1st time home buyer programs for you area.

  3. Reply
    May 2, 2011 at 7:45 am

    That is definitely not true.

    You’ll need 3% of the purchase price for your down payment (though you can sometimes get down payment assistance), and a low debt-to-income ratio is recommended.

    We’re doing our FHA through a mortgage banker (not broker) at Bank of America. She got us a great rate and we’re really happy with her.

    My advise is to shop around, and start with the bank that you use for your checking and/or savings accounts. Some banks will give you a better rate if you bank w/ them and will do automatic payments.

  4. Reply
    May 2, 2011 at 8:41 am

    Who on earth is totally debt free? I’d like to shake his hand.

    I’ve never heard of that requirement for an FHA loan. There’s also a program called My Community 100 for first time buyers. Most lenders will want to be sure you have enough funds for closing and about 2 months reserves, i.e. enough to pay the mortgage/mortgage insurance/taxes/homeowners insurance.

    Being a single parent should not — CANNOT — affect getting a mortgage, except that you only have one income instead of two. You’ll have to qualify using your income and credit alone, usually even if you have a co-signer.

    I wouldn’t call a mortgage broker unless you like paying an additional fee. Call you regular bank. Bank of America has a program where you don’t pay any closing costs. I don’t mean they’re “rolled into” the loan. That means you not only pay them, but finance them over the next 30 years. The bank really does pay the closing costs. State Farm Bank is another good one for first time buyers, unless you live in Rhode Island. They don’t write there. Also, you could call Catholic Charities or Lutheran Family Services to see if they can direct you to any local groups that have down payment help.

  5. Reply
    May 2, 2011 at 8:50 am

    I may be a bit too forward with this but please do not use Ditech for any type of loan. They are one of the many lenders who were too creative when it came to finaning and will get you into a loan that down the road you could regret. I have a couple of horror stories if you need them from my clients and that was a few years ago. Ditech hasn’t learned anything…..

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