Personal Property

Im looking to buy a home at a range from $300k and below a 3bdr two to three stories stlye home. My credit score is about 712 last time I check two weeks ago. Shopping for loans put me at about $1800-$2100 a month i am trying to get the loan to about $1200-$1500 a month. What are some stratgies that i can use to make this possible that most average people dont know about?

Buy the house cheaper. Find a distressed seller with an option ARM that’s way over their head and needs out.

You don’t say what you’re planning on doing with that property once you buy, so it’s difficult to give advice.

You’ll be looking for different things if you’re looking to have and hold, use it as a rental, or flip it.

I think he is planning to live in it.

You have not said whether you are going full doc or stated. Either way the payments you quoted are not bad at all. The only way to get that payment lower is to buy down your interest rate, put more money down, go interest only, or buy a less expensive home. Hope this helps.

To affect your rate, you can only manipulate three things:

(1) The principal
(2) Th interest rate
(3) The term of the loan (the “amortization schedule”)

Reducing any of these will reduce your rate.

Using an ARM or some other ‘smoke and mirrors’ program can reduce your rate some but the payback will probably be bad – they’re gonna get ya one way or another.


Before coffee…eyes not open. :shocked I missed that.

Keith is correct. Not to mention right now we have what is called an inverted yield curve which is causing ARM rates to be worse than fixed rates. Rates for adjustables are in the :flush right now.

Unless my numbers aren’t right, if you want a payment of 1200-1500 per month, you’re looking at a sale price of less than 180k including PITI. You’re going to have to find a seriously distressed seller or short sale lender who is willing to sell a higher-value home for 150-180k.