Buying with 5% down Chicago Suburbs.....we have a FICO score of 735-690, can we still get a loan with just this down payment?
My wife and I currently rent and are looking to buy in the northern suburbs of Chicago because the school options are better. We were planning to stay in the city and used a portion of our savings to pay down some student loan debt so we now only have 5% to put down on a roughly $600,000 house. I realize that if I wait another year or so to get the 10% it would be better, but when factoring in the cost of schools it makes more sense to try and buy now.We both have good credit and my income would support the house price, but I am not sure if it is even possible to do a 5% down loan these days. Any info would be greatly appreciated!! by terrylockhart from Chicago, Illinois. Jun 29th 2011
Steve Sexton (steve@1800valoans.com)
#36 ranked lender in Washington - 23 contributions
What county are you looking in? FHA is a definite alternative at 3.5% down and allows for seller contributions to your closing costs. Low rate also. Steve Sextonsteve@1800valoans.com877-376-0223
James Barath (JamesBarath)
#9 ranked lender in Indiana - 352 contributions
Hi Terry. Unfortunately, your FHA loan limit for Chicago and surrounding suburbs is capped at $410,000 and your conforming Fannie Mae loan limit is capped at $417,000. If the purchase price is truly $600,000 then you will need to pursue jumbo loan options and/or a portfolio loan. If that were the case, your wife's FICO score might be a hurdle based on the down payment. I'm here in the Chicagoland market and would be available to assist in your home finance needs. FYI: Don't buy in Cook County.
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