We’re “approved” but…if only we’d been less responsible, we’d have gotten a REALLY good deal.

At our credit union, we would have been approved for an ARM starting at 5% with 100% financing. But why get an ARM when fixed rates are so low right now? The loan officer we spoke to outright advised us to apply at other banks.

Fast forward to our next appointment. We are approved up to an amount for which we could not hope to make payments in the foreseeable future. That’s the good news; financing is available.

The bad news is we can’t get 100% financing. And I’ll tell you why.

Reason #1: We don’t have kids. Married almost a year, together as a couple 6 years, we have conscientiously and carefully avoided offspring (knock on wood) for the time being for a singular reason:

Limited income.

We were trying to be responsible.

Reason #2: We make “too much” money to qualify for first-time programs with 100% financing. If only one of us were working, or if either of us were still temping instead of working hard enough for that “promotion” to direct hire, we might have qualified. But no. We’re doing “too” well…in spite of the fact that each of us makes less money than almost everyone I know.

Our credit is great, perhaps not quite phenomenal; Megan’s score is 729. Mine is only 691 thanks to Sallie Mae. (Nevermind that Sallie Mae scores a FAILING RATING with the Better Business Bureau.) But if we had less money, or more expenses (like children), we could have qualified for 100% financing.

Isn’t this a beautiful county?

So to move into a house by the time our lease is up, we need to raise a minimum 3.5% down payment on whatever house we want by July. I guarantee you that’s real money we don’t have. It’s doable…sort of. But it’s very depressing to know that this figure (whatever we can save) is going to be the limiting factor in the house we buy far more than our payment or credits.

And this barrier could have been dodged entirely if we’d just been a little bit … less … responsible.

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  • Elibazeth

    One thing that you could look into– is instead of going directly to a bank, go directly to a builder. New houses are more expensive in some cases but builders usually have better financing options and deals. Like Caleb and I were able to get special financing because the government of Pinal county is seeking to develop it’s rural areas so they put down 13.5 towards the house and closing costs for first time new home buyers and a guaranteed 30yr fixed loan. I don’t know that North Carolina has anything like that but when we at one point needed to talk to another bank just to see if they could get us a better deal– they didn’t have the resources to even know about that grant or be able to give it to us. So I don’t know if that’s something that might be useful for looking into if you haven’t just already picked out a house.

  • Jason R. Peters

    Thanks Elibazeth. We’ll keep a weather eye out for something like that.

  • Elibazeth

    or you could just come out here and there are a bunch of spec homes all built ready for you to move into in our neighborhood. 4.5 interest rate, 0 down. cool neighbors desperate for their good DM back…. And I think they’re right now throwing in a free 50 inch plasma tv.

  • Jason R. Peters

    That would be really tempting if I wouldn’t have to leave an awesome job to do it. =(

  • Elibazeth

    Oh– and another thing you can do though it’s definitely not optimal. Just one of you could buy the house. You could get the 100% financing but the house would only be in one of your names.

  • Jason R. Peters

    Can you add the other person later?

    But I’m guessing we couldn’t get approval for the type of house we’d want to buy off just one income anyway.

  • Elibazeth

    OUr house was 166000 Caleb’s salary states he makes 36000 a year and we got approved with only Caleb’s name on the house- which got us a slightly better deal since I have all the student loans and he doesn’t have any debt. Caleb actually makes more due to overtime built into his schedule but the financeers didn’t count it.– You can be added on later if you refinance the home loan.

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