What is the typical down payment required on a mortgage (percentage wise)?
Is 15% the normal. Are there any banks that will do no money down or little money down. I am a first time home buyer with decent credit.
- Anonymous1 decade agoBest Answer
www.naca.com is a non-profit housing advocacy group that does it's own loans.
Many lenders have first time homebuying special deals. Sometimes you can do as little as 3% down if your credit is excellent, but then you are looking at PMI and things like that. Meet with several lenders and mortgage brokers to see what your options are. Good luck!
- Anonymous1 decade ago
you can do 100% , they will usually break it up into whats called a PIGYBACK, where you take a concurrent 1st and 2nd. however, you can take 1 loan, with a MORTGAGE INSURANCE premium, (about 500 dollars a month)
now, here's the kicker. i can get you a 100% financed, 1 loan, with no mortgage insurance(through a nich lender) who will give you a break on the rate, because its a first time home buyer program. now, some people will say that you should never buy anything 100% financed, but the big post above, puts it pretty good. i mean, you should buy 100% financed,and keep the liquid assets you would have put down, and use it to reinvest in the house, or some other high percentage return investment (i know some good companies, and the guy above me seems like he knowes a thing or two too :-).
i'll tell you what. i know how confusing and frustrating buying a house can be, with no working ,mortgage knowledge or experiance, and i would like to make this as easy and painless for you as possible. i know how big a decision this is, and how important it is to you that it get done right. call me and i will give you all the details about the loan. i dont charge app fees, or consultation fees, or anything like that.if you like the loan, we can go through with it, if you dont like it, then thats ok, too, i will work with you, until we find something that suits your needs and goals. like when will you sell? when do you want the house to be paid for? would you like me to show you how to retire with money in the bank , and a paid for house? this is what a good Loan Officer can do for you. and i'm a damn good loan officer.
call me anytime at 203-410-4427(cell phone) or 203-729-8900 x111, mon-fri, 9 to 8 EST. i want you as a client lets get started.
email@example.comSource(s): David Powell, Vice President/ Loan Officer Oakwood Mortgage Group & Assocs.
- EileenLv 44 years ago
It depends on several factors. There are many ways that you can achieve 100% financing even without perfect credit but if you are planning on using a conforming loan (standard terms and conditions) you will need anything from 5% to 20%, 10% being quite normal. Even with conforming loans, sellers may be willing to carry back a second mortgage for the amount which would represent your down payment. I would suggest that you contact an independent mortgage broker that represents multiple lenders and seek their assistance in researching the best product for the home you are interested in buying.
- BobbieLv 41 decade ago
first time home buyers can usually pay much less than the required down payment and that is usually 20%.we bought our first home in 1999 for $105,000 and only had to put just under $4,000 down and our mortgage payment at an intrest rate of 8% was $967.000 a month.check into banks that will work with first time buyers.you will have no problem.
- How do you think about the answers? You can sign in to vote the answer.
- 1 decade ago
(I posted this in another forum, but it is relevant here too)
Not only is it possible to invest with little or nothing down, that is the only way that I invest. I am a full time property investor, I do not flip houses, I invest for cash flow and long term equity. I usually buy property with 10% down, but I ALWAYS try to do it with 0% down first. For some reason, people in this forum like to put forth the proposition that 0% down investing either doesn't exist or is a scam. I will give you an example of a contract that I wrote TODAY for a piece of property in Houston, TX. This property in not expensive, or big, but in very good condition. It is a 3/2, about 1200 sq ft, and the price that the seller is asking is only $64,500. Zillow estimates that is it worth $84k and I believe that I can get $750/month in rent. So I make a full price offer to the seller, I assure them that I am pre-approved for my loan and give them a recent letter from my lender to prove it. I then tell them that I will need them to carry 10% of the loan, or maybe I will tell them I want them to carry 20% and then settle for 15% in negotiation. I then ask for them to contribute $1k towards closing costs in exchange for me overlooking the minor repairs that I have noticed the house needs. At the end of the day I will spend somewhere between $3k and $6k for an asset that after PITI (principle, interest, taxes, insurance) will put about $150/month of free cash flow in my pocket. After I deduct the interest and depreciate every last thing in the house I will realize about twice that in actual gains. So yeah, you can acquire property with nothing or little down. And don't let anyone tell you otherwise. When someone tells me "you can't do that!" (and it happen often) I say, maybe YOU can't, but I can.
You are asking the right questions, and that means that you have the guts to succeed in this business, if you need any direct advice at all, about anything, do not hesitate to email me. I will respond personally. Alqprop@gmail.com.
If you want a head start, go buy two books: Real Estate Riches, by Dolf de Roos. And Rich Dad, Poor Dad, by Robert Kiyosaki.
- LadyB!™Lv 41 decade ago
With good or decent credit and some cash reserves, you should easily be able to find a mortgage for 95 or 100 percent of your purchase price.
Also you can include in your offer to purchase contract a request for the seller to pay a portion of your closing expense (probably not more than 3% of your purchase price). This will also help with reducing your out-of-pocket closing cost. This is done routinely and your Realtor will know how to do this.
- W. ELv 51 decade ago
If your middle credit score is 580+ than you can get 100 percent financing. But if you can put down 5 percent or even 10 percent your interest rate is much better. If you go FHA or Conforming you will have MI insurance added onto your loan. VA loans do not have MI insurance. But, you could a 100 percent 1 loan , with a added .25 to the rate and not have MI insurance. That is a option for you too. In the process of buying a home, you will have to pay for the appraisal up front, closing cost associated with your loan (unless the seller is willing to help you with cc of up to 6 percent), and you will need to pay for 1 year Home Owners Insurance Policy on the new property. Unless the home comes with a washer and dryer, stove and ref, you will need to buy them also. So make sure you keep enough to purchase the items you will need for your new home.
Rates are still fantastic - work with a mortgage broker, one that can underwrite for many companies. That way the companies he/she works with will go off his credit report, and not have to re=pull your credit.
As I mentioned: Talk with a broker, a broker underwrites for many company's (I underwrite for 150 companies) so I only have to pull credit 1 time, and they look at my credit. A single lender (not a broker) has programs available, but they may not be able to help you and your situation, so you go elsewhere, and than that person pulls your credit (see what I mean.) FHA/VA approved too. If you shop, your credit is pulled and that is considered a soft pull, for a 30 day period. Just like shopping for a auto, it is good for 30 days. If you apply for a credit card, that is considered a "hard" pull and it drags down your credit score. When looking for a home, please do not apply for a credit card, Department Charge Card, Gasoline Card or make any major purchases, like a auto, etc. This will pull your credit down.
By the way, a loan application is called a 1003, and they will issue you a GFE (Good Faith estimate, with-in 3 days, that is per the RESPA laws, and the TIL (Truth in Lending). The GFE will tell you the up-front closing cost associated with your loan. The TIL will tell you the terms, rate associated with your loan. This is a estimate only - not the final - but it does help you figure things out.
It greatly depends if you need help with closing cost, (The seller could do Seller Help toward your closing cost). If that is the case, I normally tell my clients NOT to hackle over the price, since you are asking for closing cost help - especially if the home is thru a realtor, and the seller has to pay the realtor their fee which runs from 3-6 percent of the selling price, and you ask for 3-5 percent toward closing cost -assistance) Follow me so far?? You may find a For Sale By Owner, they are sometimes more willing to help you with closing cost(s) associated with your loan, since there is no realtor fees.
As I mentioned to you, Good Luck - the Loan Process can be fun - at least I love being a Broker, getting to help my clients is rewarding to me. Find a Broker who cares and will go over the full loan process with you and be in contact with you daily. The one on one customer service is important, to you, the client, to let you know the whole loan process.Source(s): Wanda Ellis, Branch Manager AmeriMortgage Financial Group 7 yrs in the Mortgage Business
- Anonymous1 decade ago
Are you kidding? if your credit is decent like you say, you can apply for no down payment. Get the seller to pay towards your closing costs, and you can arrange it so you come out of pocket with absolutely nothing. Talk with an experienced Loan Officer first so he/she can review your full application and credit report. Together you can come up with a scenario to meet your needs.Source(s): online application, http://www.choicefinance.net/tools/pre-approval.ht...
- KCLv 41 decade ago
The old-school of finance required a 20% down payment. Many lenders now help people get around this with 5% or even no-money-down programs.
- Anonymous1 decade ago
It depends on your credit. To avoid pmi (private mortage insurance) they usually want 20% down. Now its a buyers market. If you look around you'll find what you want. Cash back at closing, closing costs paid by seller, no money down, all easily obtained if you do your homework.