Clients always ask me about mortgages. They ask: What is the current rate? How much of a loan can I get? Etc., Etc. Well, the answer is that there really is no one answer for those questions. There are so many variables that come in to account that it is impossible to give solid answer. So, I asked our good friend Christina Longo over at Prospect Mortgage if she at least has some basic criteria for my Boston condo buyers to use as a guide. Here is what she gave me:
For First time Home Buyers –
Credit score above 650
Need full documentation files (W-2, pay-stubs, bank statements, tax returns)
3.5% of own funds needs to be own funds into the transaction – unless putting 20% or more down
Verbal verification of rent for 12 months – name and # of landlord
FHA allow as little as 3.5% down
MA housing as little as 5% down (approval predicated on low income qualifications)
Condo guidelines –
All New Construction buildings (where the developer hasn’t yet turned over to homeowners association) you need 51% pre-sale requirement
No litigation allowed against the development
If commercial space in building – must be less than 20% of building (or can go for an exception)
All common areas and unit must be 100% complete to close on the unit
PMI – less than 20% down you need Private Mortgage Insurance (PMI)
You cannot go over a 41% debt to income ratio
If buying a condo you MUST have 70% owner occupancy ratio
NO LITIGATION – NO EXCEPTIONS
No more than 10% of the units in the project can be owned by more than 1 person
I know that is a lot to comprehend but at least if you use it as a starting point it should help you narrow down what might be possible and what definitely isn’t. If you have more questions about Boston mortgages, please call Christina Longo at 978-886-9359 or email her at christina.longo@prospectmtg.com.
