Financing in Orlando>Question Details

Phmtch, Home Buyer in Orlando, FL

Conventional loan down payment requirements?

Asked by Phmtch, Orlando, FL Tue Jul 7, 2009

Hello all,

What are the conventional mortgage down payment requirements? Do they differ for homes and condos?

I keep hearing different down payment percentage quotes and they are all over the place. One loan officer will say 5-10% with a good credit score and another will say 25% or more -- how are they coming up with these numbers? The conflicting information makes me wonder if people who work in the industry even know what's going on -- no offense to anyone.

Where can I find reliable information online? Are there any banks or lenders who exclusively deal with condos? If you know of a link or contact info, please post for the confused home buyers out there! Thanks.

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5
BEST ANSWER
Okay, so here's the story:
Current conventional financing will go to 95% Loan-to-Value. This would be based on having at least a 720 credit score. This is less a factor of the loan itself but of current mortgage insurance availability. However, Florida is a declining market right now so that means that mortgage insurance will take 5% off of the insurable loan amount, hence 90% max financing in Florida and a minimum 10% down payment requirement.
Now for Condos:
Mortgage Insurance companies have pretty much completely eliminated condos in declining markets from their portfolios, hence 80% max financing by default. Again, you could get a loan for 90% loan to value on a condo in Florida but nobody will insure the loan, so it is invalid. Your best bet if you want a condo is to find an FHA-insurable condo and obtain it with only 3.5% down. FHA does not have any declining market guidelines.

I hope that helps. Feel free to call me if you have any questions.
Luke Allison
Bank of America Home Loans
828-777-8828
luke.allison@bankofamerica.com
1 vote Thank Flag Link Tue Jul 7, 2009
hi , I was told that I can get an conventional loan but my middle score is 581 and Im going through a program for down pym and closing cost assists how does this work?
0 votes Thank Flag Link Fri Sep 24, 2010
You can do up to 30% down, but you will still need to show income and other documents.

Look at this blog it will help you to learn more about your situation.
I've got most of my answers there as well.

Good Luck.
0 votes Thank Flag Link Tue Jul 21, 2009
Hello Phmtch,

Luke is correct...let me just reiterate what he is saying and shorten it up for you so it is clear as day.

Conventional mortgages require a minimum 10% down on single family homes and condos require a minimum down payment of 20%. It's as simple as that! :-)

Hope this helps.

Joshua Lerette - The Tampa Bay Mortgage Pro
Innovative Mortgage Services, Inc.
727-488-7355
Josh@thetbmortgagepro.com
0 votes Thank Flag Link Tue Jul 7, 2009
New Fannie Mae Condo Guidelines that went into effect January 2009:

https://www.efanniemae.com/sf/guides/ssg/annltrs/pdf/2008/0834.pdf

A good Blog that explains the Disastrous Effects of these new policies:

http://www.miamicondoinvestments.com/2009/01/26/new-fannie-m…

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Best wishes to you,
Fred
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0 votes Thank Flag Link Tue Jul 7, 2009
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