Abby Badach Doyle
speaker
246 appearances
4 recordings
1 series
first heard May 2025
last heard 13 Aug
Abby Badach Doyle’s voice in public audio — every appearance, attributed to the second.
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recordings per month · last 12 monthsRecordings per month over the last 12 months — 3 in all, peaking in Aug 2026 with 1.
Appearances
PMI or private mortgage insurance is what protects the lender if you make a down payment less than 20%. So that is a real thing. But it's an additional fee that's tacked onto your loan, and it drops off once you hit that 20% equity. So your mortgage broker or your loan officer can help run the numbers at different down payment amounts.
so that you're able to understand how much PMI you would be paying and how that would impact your monthly payment.
Closing costs are those miscellaneous fees that complete the transfer of ownership of the property. That's something that you pay at the very end of the line on closing day when you're handing over the keys. And they run 2% to 6% of the loan amount. So you typically pay for those in cash or a wire transfer or a cashier's check.
So the important thing to keep in mind when you're budgeting for a house is it's not just the down payment. You do want to have some wiggle room for the closing costs. as well as all of those cash expenses that you'll pay along the way, like a home inspection, things like that, moving costs. So it's not just the down payment.
Definitely account for a wiggle room for closing costs and other miscellaneous expenses, too.
To tackle those larger questions about loans and financing, I know Nikki asked about a first-time homebuyer loan. But there's not just one type of loan for first-time homebuyers. There's definitely a lot of options. This is where someone like a mortgage broker can really be helpful in explaining your options and helping you shop around.
So common options for first-time homebuyers include conventional loans. As the name suggests, that's the most common type. Conventional loans allow for lower down payments, that 3% figure that I mentioned before. Another popular option for first-time homebuyers is FHA loans, which are guaranteed by the Federal Housing Administration.
Those can be easier to qualify for if you've had credit challenges, if you're building your credit, if you have a lower credit score. So typically, conventional and FHA loans are the most common options for first-time homebuyers.
For credit score in general, just like everything else, the higher the better. You're going to have a more competitive interest rate. You're going to have more options if you have a stronger credit score. Most borrowers have scores in the high 600s to low 700s, and each lender is going to set their own minimum credit score. score by loan type.
I love that you brought that up because that can be such a useful first step and that can really make a difference if you're able to get a lower interest rate with a better credit score. Building that credit as a first step in home buying readiness overall is a really smart place to start.
That's an option if you don't have a lot of cash saved up, but it is risky and I'd consider that to be a last resort. And Sean, I know you have some thoughts and experience on this topic too.
If the issue is that you don't have a lot of cash saved up, I'd recommend looking into down payment and closing cost assistance instead of tapping your 401k.
So most down payment assistance programs, also closing cost assistance programs, most options are available to first-time buyers with low to moderate incomes. But there are some options out there that include higher income or repeat buyers. Down payment assistance, it can come in the form of a grant. So that's free money that you don't have to pay back. A forgivable loan.
So if you stay in the house for five or 10 years, then the loan is forgiven. or a low-interest loan with good repayment terms. So sources for down payment assistance, the big one is state housing finance agencies, but you can also find grants and assistance through local nonprofits, local governments, so your city, your county, and different mortgage lenders.
So credit unions, banks, a non-bank mortgage lender, even some employers have first-time homebuyer assistance to incentivize employees to buy in their HQ city.
Definitely assemble your home buying squad so you don't have to go all of this alone. Find a good buyer's agent who's experienced working with down payment and closing cost assistance programs. Again, a good mortgage broker, a loan officer, someone who's really experienced and like does this day in, day out for a living.
It can be really overwhelming to like run an online search and just be inundated with information. So, you know, assemble your squad, surround yourself with people who are experienced and that you trust and can steer you in the right direction of stuff that works for you.
Before you can receive down payment assistance, some loans and programs require you to complete a first-time homebuyer class. But honestly, even if it's not a requirement, it's a great first step to learn and understand the process and feel really confident about what you're getting into. So A first-time homebuyer class covers all the basics, all the stuff that we're talking about now.
Many are available for free online at a self-study pace. You can also find a class online or in real life if that's your speed. But there's a lot of options to just kind of like check all the boxes, understand the steps, and it's a really good place to start if you're feeling a little overwhelmed.
You're giving me flashbacks, Sean. Yes, that's very true.
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