Can you still buy a house for 5% down?
With great credit?
- 1 decade agoBest Answer
I'm not going to say its impossible, anything could happen. However, The likely-hood of getting away with that is remarkably low, even with perfect credit. If you're going to go for it, you'll need 2 things.
1. Outstanding credit
2. Luck, and a lot of it
Most places aren't going for anything less than 10% down, even that take a fair amount of searching. The standard seems to be closer to 20%. There are several reasons for that, but the first and foremost is the state of the economy. With so many people having lost money in the markets and a significant lack of job security they want some sort of insurance. The housing market is was caused the initial economic collapse in the first place, so most of it is still pretty shaky.Source(s): http://www.lendingtree.com/mortgage-loans/advice/q... Market experience.
- 1 decade ago
There are programs that allow you to only come in with 5% down. FHA, for example, only requires 3.5% investment in a loan. Conventional loans also allow 5%, however you will be required to carry Mortgage Insurance until you have paid down or have 20% equity in your home. The rules for MI have stiffened somewhat. They now require that you have at least a 680 credit score, and have 2 months in reserves for PITI after closing. Hope that helps.
- Anonymous1 decade ago
Yes you can. FHA only requires 3.5% down and USDA is no money down.
Conventional may be a problem if you live in a declining market which would require 10% down.Source(s): I'm a mortgage banker/broker