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Down Payment Question

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MIgirl Guest	Posted: Tue Feb 22, 2011 4:31 pm    Post subject: Down Payment Question Like 0 Dislike 0 Hi, I have the deed to the property upon which I plan to have a small house built, cost will be approximately $140,000.00. The current value of the lot (based on the property tax assessment) is about $14,000.00. I would like to have the property used as collateral for the down payment. Is 10% down enough nowadays for a conventional 30 year fixed loan? My 3 credit scores range from 824-921, I only have a car payment and my current rent, no other debt at all, I have several credit cards I use a few times a year, but no balances on them. Income is 80K per year, same job for last 10 years. Is the deed to the property acceptable for the down payment? Will I need to do an fha loan since I do not have 20% down? I do have some savings, but wanted to use it for closing costs, appliances, etc. Thanks for your help/advice. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
smithsussane Joined: 18 Sep 2008 Posts: 10439 Location: Alaska 985.83 Dollars($)	Posted: Tue Feb 22, 2011 9:30 pm    Post subject: Like 0 Dislike 0 Hi MIgirl! Welcome to forums! In order to get a conventional loan, you should pay at least 20% down payment. If you're unable to offer 20% down payment, the lender will ask you to go for private mortgage insurance (PMI). You can go for a FHA loan if you don't have 20% down payment. Feel free to ask if you've further queries. Sussane
brian1 Community Expert Joined: 14 Jun 2008 Posts: 448 Location: Northern California 15.61 Dollars($)	Posted: Tue Feb 22, 2011 10:23 pm    Post subject: Like 0 Dislike 0 are you looking for a loan to build the property? If so that type of loan is very difficult to find and will require more than 10% down - in some cases they will allow you to use the value of the property to the as completed value of the project. I honestly do not know what the current guidelines are for these loans since I have not seen a bank offering them in almost 3 years - we did a lot of them in the past and that is how they worked then - if you can find it please post up where. FHA will not allow for construction they will only lend on a completed home B _________________ Licensed Broker 50 states http://www.aimwithfocus.com Live Chat available Need quick advise email or PM Glad to help Pre-approvals www.applyonlinesecure.com

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