Financing in Hialeah>Question Details

Mikel3x, Home Buyer in Hialeah, FL

Do I need 20% for a down payment to buy a house.?

Asked by Mikel3x, Hialeah, FL Sat Jun 25, 2011

Help the community by answering this question:


No, no you do not. Here is a quick summary of the loan programs that are now available:

-USDA Financing - up to 100% financing for Rural Properties (no mortgage insurance).
-VA Financing - up to 100% financing and must be a Veteran to qualify (no mortgage insurance)
-FHA Financing - up to 96.5% financing with mortgage insurance.
-Conventional - up to 95% financing with mortgage insurance; otherwise up to 80% conventional but can get a second lien to get up to 95% LTV with sufficient credit.

Hope this helps.
1 vote Thank Flag Link Sun Jun 26, 2011
No. The best answer here is from Scott, who ran down the primary ways you can finance conventionally.

There are also ways to creatively finance--often with owner financing. Generally, agents are less comfortable with these and, really, if you can afford to buy conventionally you probably should. However, other options requiring far less than 20% down (though it's all negotiable) are traditional owner financing, lease-options, lease-purchases, land contracts, contract for deed, wrap mortgages, and land trusts. There are drawbacks and risks to some of these that you may not encounter in a traditional purchase, but they may be worth considering.

Hope that helps.
0 votes Thank Flag Link Sun Jun 26, 2011
Don Tepper, Real Estate Pro in Burke, VA
fha requires 3.5$ Some USDA Loans can require nothing in down payment, most conventional loans require between 10% and 20% down. Your credit rating will determine much of what you are asking about!
0 votes Thank Flag Link Sun Jun 26, 2011
No, you can possibly even buy a home with zero down using a USDA Mortgage if the address and your income isn't too high.

lf you're a fan of and want to WIN financially you will wait until you have 20% down and then only buy as much as you can qualify using a 15 year mortgage.
0 votes Thank Flag Link Sun Jun 26, 2011
No. You can do it with as little as 3% down on conventional and 3.5% on FHA. However, you will have to pay monthly private mortgage insurance(PMI). PMI is an insurance that you pay a third party to protect the lender in case of default. You would need to pay for PMI at least for 5 years, sometimes less. You would also need have a certain credit score to qualify depending on the program. If you want to avoid paying the PMI then you put 20% down or more. For more information call or email me to discuss.

Jose Morales
Florida Mortgage Coach
“We Coach You Through the Mortgage Process”
0 votes Thank Flag Link Sun Jun 26, 2011
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