Searchlight Crusade
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If you can document enough income and have a not too miserable credit score and history, you don't *need* any down payment. 100% loan programs are very available, up to the conforming limit (and with GNMA removing their restrictions to VA loan amounts, veterans can get 100% loans above that).
(There will be closing costs that have to be paid, and if you pay a slightly higher price, most sellers will do so. I state this for the sake of completeness, as I don't recommend it to my clients, either buyers or sellers, but it can be done. Nor is it the question you asked)
The catch is, of course, that such financing arrangements are less favorable than ones where you do put a down payment. As of right now, lenders don't want to do second mortgages if more than 90% of the value of the property will be pledged, so the choice for loans with less than 10% down is PMI or no loan. PMI is a bad thing, but it can get you the loan when you can't get it any other way.
The more of a down payment you have, up to 20%, the more favorable your financing terms will be, not to mention that you don't have to make payments on money you don't borrow.
But none of this changes the central issue, which is that with a not putrid credit score (in theory 620 and up) and the ability to document enough income to qualify, you don't need a down payment, even today. |
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goofycollector
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You should put down as much as you can. I recommend 20%, if you put that down, you will avoid Private Mortgage Insurance which could be around $200/month. It's a waste of money and not required if you put down 20%. My first house, I put 3% down and the PMI was $173/month. It killed me to see that money going down the tubes. I ended up working like a dog and a year after I bought the house, I refinanced and brought 20K to the table so I wouldn't have to pay it. Why pay for something like that, when I could be paying that towards principal each month to pay my house off sooner? With the tighter lending standards recently, different banks may require different things. Keep in mind, your house is your biggest asset, but also your biggest DEBT. Don't rush in to it and know what you are doing before you commit to anything or ANYONE. All mortgage brokers are not the same, some are there to help you, but most are there to help themselves. I recommend going to a local credit union or local bank and sitting down with someone. I would also do a ton of research on home buying, FNMA offers seminars in some areas. Don't rush to buy a house just to be a homeowner, you want to enjoy it. GOOD LUCK, if you do it right, it's a great investment. |
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dream big!!
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Doesn't matter if you have good credit, in most cases you can get away with $0 down. |
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drewxjacobs
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Depending on the kind of loan you want, VA, FHA or conventional, they range according to lender. Some VA loans are 0%, but you would have to have to have VA benefits. Most are 5 - 10% of the contract price. Then you have to allow for the prepaids in escrow (taxes, insurance). |
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texansis
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Depends on the deal - 5 or 10% is typical.
More importantly, what the realtors don't say is that your final payment will be close to 1% of the purchase price, so the monthly payment on a 250K house is going to be $2500 per month! |
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Scott M
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20% or $50,000 is standard but that rarely happens, so dont worry if you dont have the cash.
The bank will do 2 loans to rectify this issue. They will loan you the 20% for a smaller down payment, ussually 10-20% of the $50,000, which is $5-10K. You use the first loan as the down payment for the second loan. In the end it is all wrapped up so you are only paying the one bill. This is very common and will save you money because you wont need PMI which is a type of issuance for buyers that are considered high risk because they couldnt pony up 20% of the sales price of the house upfront.
Hope that helped.
Oh, and if you use a VA loan (If you were in the military) you dont need a down payment. They just tack a fee of 2.4% to the end of the loan. |
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~SeaHorse~
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depends on your credit, the loan program, and how much houses are worth in the area.
contact a good mortgage broker and see what they have to say. if you can afford 10 to 20% you'll be golden! |
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Rick B
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I would recommend 10 to 20%. How much you NEED depends on your credit. |
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Anthony
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With good credit you can still get 100% financing. You could also go FHA (depending on the limit in your area) and do 3% down. You could also do a conventional 5% down (not sure why others are saying 10% - that is way off). |
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Mike
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this will vary from lender to lender. Most require 10 % down, but you have to pay more cash down to avoid PMI (Private Mortgage Insurance). So I would say the MINIMUM down payment is $ 25,000. |
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Danny Lightning
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depends on your credit and the bank or finance company you go thru |
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R
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well if you did the traditional 20% down that would be $50,000 plus closing costs that range anywhere from 5-10% |
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fiveftelevenqt
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Depends on the lender that you use or what incentives the homebuilder is giving (If you are choosing a new home), but since the rules have changed drastically with the recent uprising or foreclosures. The general rule of thumb is 10- 20% |
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Larry M
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generally only 10%...
and good credit...with the recent housing problems I would be guessing they will be tightening up the ropes.. like it should have been all along |
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coach
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10% |
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Granny 1
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Most places will require 10% down. |
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Bob S
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50000 |
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Tom C
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At a minimum $25,000 plus closing costs which can run upwards of another $10,000 for a house with that price tag. |
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Frederick M
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In today's market, with all the trouble caused by zero- or low- down payment loans, 20% or $50,000 would be a minimum, even if you had "solid gold" credit. In normal times, 10% could get you in, with a good credit rating. |
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Computer Guy
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Traditionally, lenders want you to have at least 10% down, in this case $25,000. Some lenders may want more, they are getting more cautious. And of course, they want you to be able to afford the payments. |
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GSD PAL
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20% or 50,000 |
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ncelica979072
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15 % hence you having good credit if not double the amount so 15% is about 35-40kthe better your credit the lower you can get away with...
-Nick |
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MsBabyPhat
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It depends, but the higher the amount you put down the lower the monthly mortgage will be. Talk to a mortgage person and see what the payments would be with the amount you are able to put down. |
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