| Author |
Message |
|
|
anto.096
Guest
0.10 Dollars($)
|
 Posted: Fri Aug 01, 2008 8:55 am Post subject: down payments |
|
|
hi
can u tell me how the down payment amount is calculated,or can the buyer put down any amount?
in other words,whats the least u can put down as a down payment? |
|
| |
|
 |
 laphillips
Community Experts
Joined: 10 May 2008
Posts: 134
Location: Yucaipa, CA
33.92 Dollars($)
|
| Posted: Fri Aug 01, 2008 9:41 am Post subject: down payments |
|
|
Welcome Auto.096,
The simple answer to your question is the amount of the down payment depends on two factors: 1) The cost of the property, 2) the loan program you choose.
There are federally insured loan programs such as FHA that offer 97% LTV meaning they will loan 97% of the value of the property & the down payment is 3%; i.e. on a $300,000 home the down payment would be $9,000.
Loan & underwriting requirements have become tighter* in the last couple years & it is necessary to have a 10-20% down payment BUT be aware that borrowing anything larger than 80% LTV requires that private mortgage insurance - this is different than your hazard insurance - be added to your loan causing your monthly payment to be increased possibly as much as $500 or more.
*Qualifying for a home loan has become more difficult
_________________
Lynnette Phillips
Loan Officer/Realtor,
Foreclosure Consultant
Home Pride Mortgage
My Blog: http://activerain.com/helpingufindaway
My website: http://lynnettephillips.com
**This is not intended as legal advice. I am not an attorney.** |
|
| |
|
|
anto.096
Guest
0.10 Dollars($)
|
| Posted: Fri Aug 01, 2008 11:51 am Post subject: |
|
|
| thanks,you were very helpful |
|
| |
|
|
gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 1346
Location: bloomfield, ct
45.00 Dollars($)
|
| Posted: Sat Aug 02, 2008 4:55 am Post subject: |
|
|
anto, you didn't indicate where you live, but in many states there are programs that are run by state agencies allowing for no down payment at all. this, of course, depends upon your precise circumstances.
just for example, in connecticut, we have a bond program run by the connecticut housing finance authority. we will make a first mortgage of 97% of the purchase price or appraisal, whichever is lesser. if a borrower has less than $5000 of available cash to do the transaction, however; there is the availability of a down payment assistance loan. in this situation, it is possible for a borrower to actually obtain more than 100% of the price of the home in the form of two loans.
not every state that has bond programs offers the same set of circumstances, but it is definitely worth investigating what might be available in your state.
_________________
George M. Akerley
Senior Loan Officer
Freedom Mortgage Corporation
37 Jerome Avenue
Bloomfield, CT 06002
860-286-0444 |
|
| |
|
|
chrisburns
Community Experts
Joined: 13 Nov 2007
Posts: 183
Location: Florida
38.75 Dollars($)
|
| Posted: Mon Aug 04, 2008 4:54 pm Post subject: |
|
|
Also (at least for now) down payment assistance is allowed for the 3% that FHA requires on a purchase.
You can basically finance the 3% into your loan.
_________________
Chris Burns
Five Stars Mortgage, LLC
Office: 800-871-2636 ext. 200
Cell: 407-456-3697
Residential & Commercial Loans
Mortgage Blog
Financial News & Info |
|
| |
|
|
