Question for new homebuyers (posted this on NW Board too)

sofreakingexcited Posted: Dec 23, 2009 10:03 PM

Question for new homebuyers (posted this on NW Board too)

DH and I own a co-op but are hoping to buy a home within 2-3 years. Just trying to get an idea of how much banks are requiring for downpayments these days in percentage terms? Any help would be great! Thanks so much and Merry Christmas!

bag19 Posted: Dec 23, 2009 10:18 PM

Re: Question for new homebuyers (posted this on NW Board too)

For a conventional loan, you need to put down 20% of the selling price. If you go for an FHA loan, you can put down less than 20%. BUT you have to pay MIP which is mortgage insurance. We paid a bulk of if (i don't remember the required percentage) at closing and we will be paying PMI until we reach 20% of the selling price. Your best bet is to call the bank, they can and should answer any question you have (we used Wells Fargo and they were PHENOMENAL) FM me if you want more info. Good luck! House hunting/buying is like a roller coaster but sooo worth the ride!!

stinenandy2010 Posted: Dec 24, 2009 08:37 AM

Re: Question for new homebuyers (posted this on NW Board too)

For a conventional loan you need 20%, no way around it due to the economy.

However, you can get an FHA loan which currently requires a minimum of 3.5% downpayment. Of course you can put more down. FH and I did this and yes we pay PMI, its not horrible though, it was an additional $50 on our mortgage and its only for five years.

FuTuRe MrS MaZz Posted: Dec 24, 2009 09:20 AM

Re: Question for new homebuyers (posted this on NW Board too)

Posted by stinenandy2010

For a conventional loan you need 20%, no way around it due to the economy.

However, you can get an FHA loan which currently requires a minimum of 3.5% downpayment. Of course you can put more down. FH and I did this and yes we pay PMI, its not horrible though, it was an additional $50 on our mortgage and its only for five years.

No, you CAN get a conventional loan without putting down 20%... I know bc I was offered one with putting down only 7-8%... The bank can ask for an 'exemption' to be made if credit is really good and some other factors are in place... Dont remember exactly how we got it... Regardless, we went with an FHA loan... It was somehow cheaper for us in the long run!

MrsList Posted: Dec 24, 2009 12:05 PM

Re: Question for new homebuyers (posted this on NW Board too)

My uncle just bought a house and they didn't even have to put down 10%. I think if you have good credit, they're still a little willy nilly with the mortgages.