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YES, you can get a mortgage, but it doesn't mean you can afford it. I read the answers above and in my opinion, doesn't help you at all. The question isn't whether you qualify. It ought to be, "Can I afford it?"



Your credit score is irrelevant. You will not qualify for any conventional loans in the market today because you will need at least 5 to 10% Down payment depending on where you live. If it's a depreciating market, every lender will deduct 5% off the maximum loan-to-value from their guidelines to protect it's interest. That's without counting closing costs, which must be paid outside of closing. Can you come up with at least $5k additional to your down payment? In short, your credit score needs improvement, but your main problem is LTV (Loan to Value). You will need at least 5% of purchase price as down payment plus $2 minimum closing cost that you have to pay for your mortgage and perhaps, $3k to a realtor.



The ONLY loan you may qualify for today without the hefty down payment is an FHA loan. It's a government loan - Federal Housing Administration loan. This is for desperate people who needs the government to refinance them to avoid foreclosure. FHA loan requires that you pay up-front mortgage insurance along with monthly mortgage insurance. It also comes with automatic one point buy-down in origination, so you are actually paying thousands more just to "buy down" the rate. In other words, although FHA promises low interest rates, it's a horrible loan. You may get a nice little note with a low rate of 5.875%, but you will at the end, pay thousands more because of Mortgage Insurance.



My advice, is stay where you are at for now. Save up more money, so you can pay at least 20% Down payment, along with another $5000 for closing costs. Because you asked if you qualify for a $110k mortgage, I assume homes in your area are worth that much. The fees I mentioned above should cover most fees for this loan amount, but can you afford the monthly mortgage payment, plus property taxes and home insurance plus mortgage insurance? Remember, you will be paying hundreds more above and beyond your monthly mortgage payment.



Don't listen to brokers who will just tell you what you want to hear. Brokers are going out of business. No reputable lender will associate with them and they will rip you off on a loan you did not agree to. The old bait and switch. It's very difficult for them to fund a loan, because lenders place special guidelines in the "wholesale" market for brokers. 95% of fraudulent loans came from brokers. Lenders and banks who approved the loans based on these fraudulent applications took all the blame and are much smarter and strict now. Don't waste your money on a fraudulent appraisals either. You DO NOT want an inflated value. It doesn't work anymore, because again, no lender will accept them.



I completely disagree with the person above. You must go get a loan through a reputable lender, bank, or best yet, a credit union. You know exactly what you pay for, without additional mark up. Brokers get paid by lenders through what's known as rebates, based on what rate they sell. So if you qualify for 6%, they'll sell you 6.25% and get paid for the overage by the lender as job well done. Loan officers at a bank, don't get paid that way. Number of loans they do per month is crucial to their overall commission, so it's in their best interest to give their clients the lowest rate, so they can earn their business. A broker can do one loan a month and get paid thousands for it. A loan officer at a bank must do 5 or 6 loans to get paid the same amount.



Wait a year to save up. More down payment = more equity = low interest rate. Home values will still be low. Don't be so eager to jump on forclosures and shortsales, as they often have liens/judgments. Don't follow the band wagon. Look at the market today. It's full of foreclosures because people thought they could afford what they could not. If this ever happens to you, it will take years to get back on your feet, as it will ruin your credit for years to come.

Maybe with an FHA mortgage. Otherwise, you'll probably need to come up with at LEAST 10 percent down payment -- and these days, lenders prefer 20 percent from people with iffy credit. You'll also need PMI if you're not putting at least 20 percent down, so that's going to add to your monthly costs.



Sorry.

SICK and TIRED of throwing money away on rent? Think of property taxes, maintenance, insurance, repairs, etc. can B VERY costly. the cons of ownership is that if something goes wrong U have 2 fix it, but if it's a rental, U can simply move out.

I think you will have a difficult time getting a $110K mortgage with only $5K down payment. First, this means the home cost is $115K, meaning your down payment is less than 4.4%. Unless there is a first time home buyer program that allows for a very, very low down payment, you will need to save more before you buy. Lenders may also be requiring higher down payments because of the current house price decline.



One thing you seem not to be considering is the closing costs associated with buying a home. These costs include legal fees, title insurance fees, loan origination, loan points, appraisal fee, etc. Also, you will need to purchase house insurance (to cover you in case of fire etc.) and give your lender money to start a real estate escrow fund. All these could easiely add up to $5K or more on their own.



As much as you hate paying rent, everyone does until they have enough money for a house down payment and closing costs.



My advice is to search the internet for websites that can provide closing cost estimates and talk to a mortgage broker (represents several different lenders) to determine what loan program would be best for you.

Yes, it is very feasible for you to get a mortgage. If your credit score is really 640 and you don't have a lot of outstanding debt, you are a perfect candidate for a loan. My recommendation for you would be to see a mortgage broker, not a bank. Banks do require higher credit scores, but mortgage brokers can find you a company that will accept your scores.



For the person below: why continue to pay on something that will never be yours? Why decorate a home for someone else's financial benefit? Think of a home from an investment standpoint.

yes. its very fiesable. i got approved for a $240,000 mortgage with a 580 credit score and imake 46,000/year. the economy is horrrible right now, so it is very hard to obtain 100% financing (and u said u could come up with that downpayment), so 95% is the most u could probably get with a conventional mortgage (non fha). on a 110k property, that would be 5500 down. now if the property u are interested in is fha approved, you can get a fha loan and they typically only require 3% down. now don't forget about closing costs if the seller won't pay them, but try & negotiate that into the contract. but you can definitly get approved. u might not get approved thru the 1st lender u try, but don't give up. try topdot.com. they are a fha lender, and they are supposedly very easy 2 get approved thru. i hope that helped, & if u have any other questions about it, feel free 2 email me.