Buying House .. How much money should come from my pocket?

I am determined to get out of my mom's house. If I were to buy a house at $100,000, how much money should I have saved up. I'm more than ready to move on my own but I want to do my homework and gather up as much information as possible. I plan on moving by this time next year. How much money should I have saved up?

Also, if anyone knows any real estate agents, I'd love if I could speak with him or her.


I am in Los Angeles and I want to buy in the Antelope Valley area

6 Answers

  • Grey
    Lv 6
    7 years ago
    Best Answer

    It depends on where you move to and what loan program you decide on.

    Conventional loans typically 20% down payment ($20,000 on a 100k loan) you will also having closing costs, typically around 5% of the loan.

    FHA loan - government backed loan allows 3.5% down payment however you have to pay PMI (Private Mortgage Insurance) on a 100k loan with 3.5% down you could expect to pay an extra 30 - 40 dollars a month onto your Mortgage payment

    USDA loan - Government backed program that is for low income people. Must be in a rural area (however this qualification is pretty loose..but you cant expect to buy a home in a city with it) . You can borrow up to 100% of the sale price of the home.. (meaning no down payment). There is a guarantee fee = to 2% of the sale price however you can roll that into the mortgage as well. there is a fee that is .4% of the outstanding balance.. again for a 100 k loan that would equal to approx 30 dollars extra a month. You can also roll closing costs into the loan if the sale price is less than the appraisal So if you buy for 95K and the appraised value is 100 k. 5k can be added into your mortgage to pay for closing costs.

    Your biggest expenses is the down payment and the closing costs. Depending on which program you go with the amount of down payment and closing costs can be nothing to several thousand. All types of loans do allow for something called Seller concessions which is part of the "deal" made between you and the seller. For instance if im buying a home I can make an offer of 100 K and a seller concession to pay 5% towards closing costs. But the seller can always counter offer without concessions.

    All this is moot if you do not qualify. the programs I mentioned all have credit and income qualifications. Typically your credit score needs to be 660 or above. The higher the FICO score the lower your rates will be. You should also not have any outstanding collections or charge offs.

    The rule of thumb on income is that your Mortgage should not be more than 30% of your gross pay.

    So if you make 20,000 a year your mortgage should be no more than 500 per month. another way to look at it is no more than 3 years of income therefore the mortgage you would qualify for is not much more than 60 k a year. In order to get qualified for a 100 k mortgage your income should be approx 33,000 per year.

    A lot of info I know.. but this should give you some knowledge and a goal to try to meet

  • Judy
    Lv 7
    7 years ago

    A down payment of from $3500 to $20,000 would be required, depending on the type of loan. Plus a few thousand dollars for closing costs.

    To get a loan, you'll also need good credit and job history. Talk to a lender now and see what you'll need

  • Rob
    Lv 7
    7 years ago


    u want no need to move to a rental apartment.

    there u want to earn at least four times the rental


    as for buying a house at 100K u need to earn at

    least 30K yearly for one year or more.

    to get a good loan u want to have

    10,000$ for a down payment.

    4000 -8000$ for closing costs.

    2000-3000$ for house set up.

    5000$ for empty house syndrome.

    So 21000 -26000$ will make easy

    move to house.

    suggest u read and study

    House buying kit for dummies, Tynsen.

    Total money make over, Dave Ramsey.

    both will save u decades and 100,000$

    of hard costly pain filled life lessons by

    learning from others dumb mistakes, not yours.

    much easier, faster and cheaper.

    good knowledge is good luck.

    Source(s): foreclosure buyer, seen your financial nightmares b4.
  • 7 years ago

    - Two years of employment required with tax returns.

    - That needs to be steady income. No gaps.

    - Minimum wage income (even full time) will not be sufficient.

    - Good credit required.

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  • Jo
    Lv 7
    7 years ago

    I know several real estates agents.

    However, you don't say where the heck you are.

    What you need to do is look on Google, the phone book, classifieds ads - find a real estate company, chose one of the agents. Have a meeting with him/her and ask all your questions - they will know exactly what you need in terms of down payment, employment history, documentations.

  • 7 years ago

    it depends on the loan program. FHA requires 3.5% or in your example 3,500. USDA requires $0 cash down.

    PLUS there is will be closing costs. Usually around 3%. However, closing can be paid by the seller or even the lender (with a higher interest rate).

    I'm sure there are realtors in your area.

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