What percent down payment is needed to buy a house?

My fiance and I both have credit scores over 700. We are looking into buying a house soon but have not saved a down payment. What percentage of the total loan amount should we expect to have to save to get a good interest rate?

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  • Best Answer

    Adam, I'm a mortgage consultant and I'll tell you that you can get a 100% loan with a great rate and no points as long as you have all the factors needed to qualify for that program. Believe it or not there are some 100% programs out there with great rates. Aside from your credit score and the money you have saved up... there are other factors involved to get you qualified for a great rate.

  • 1 decade ago

    Traditionally this number has always been 20%, however with the turbulent lending market being what it has been over the past several years you can now get a house with 0 down. However keep in mind that the way this is accomplished is by giving the lender a good first or traditional loan typically not higher than 90% and a second for the rest of the of the amount needed. The first loan, say a 30yr fixed, would be at around (example) 6.5% and the second would then be around 12%-15% depending. So it really helps to have anything, even 5% down, but to get a good 30 fixed rate go with 10% minimum.

  • 1 decade ago

    In order to not have to pay PMI (mortgage insurance) most companies will insist on 15%. Sometimes you can buy a home with as little as 5% down, but you will likely pay a higher interest rate. If either of you are veterans, look into a VA loan. If not, look into an FHA loan. There are lots of options out there, depending on your location. The less you put as a down payment, the higher your interest rate is likely to be, regardless of your credit score. If you are buying a home directly from an owner, you can arrange your own terms to an extent. Hope this helps...

    Also, be sure to look into property tax rates and homeowners insurance rates in your area. I live in Florida, and right now it's more advantageous to RENT than to BUY believe it or not.

  • 4 years ago

    It has been done for the past several years, unfortunately with some disastrous results for those that got in with no down payment and now cannot refinance into better rates or sell because the property is worth less than they purchased it. Most lenders have done away with the 100% purchases (which was two loans combined usually to cover 100% financing), but FHA allows 3% down payment- and funds can be gifted, and FNMA announced effective June 1, they will also allow 3% down payments.

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  • 1 decade ago

    First of all, congratulations on being so creditworthy.

    Mortgage companies would love to have you as customers. Since you are such good customers, they would never let you go easily, so always bargain for a better deal.

    I would put the down payment figure at 10%. It might take you a few months to save up, but prices are still falling in most parts of united states, so you should be fine. Please do not fall for "no down, interest only" mortgages. Do some thorough research (if needed, buy a suze orman book) before you buy a home. A $20 book is a worthy investment before buying a $250,000 home.

  • 1 decade ago

    I am a mortgage banker and there are some awesome first time home buyer programs out there to assist you in getting into a home without a down payment. I have programs as low as 5.40% fixed for 30 yrs at 100% financing. You could also look at FHA which only requires 3% down. I have conv30 products that offer 100% loans as well. You have an excellent score and as long as your debt ratio is in line I do not see a problem. As a matter of fact, my first time home buyer programs beat my programs with considerable down payments. I also have programs that you can get assistance with the closing costs as well. Contact me for more information at michelle.matthews@migonline.com

  • 1 decade ago

    SOUNDS LIKE YOU HAVE A GOOD CREDIT SCORE

    i would say at least 10% shop around Watch your P&Q's

    get a fixed loan ,shop for rates. there are some trickey lenders out there that's why you are seeing a lot of forcloseures

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