Hope this helps,
As of January 2009, the minimum down payment for home buyers using an FHA insured loan was changed from 3 percent to 3.5 percent. In early 2010, an added level of down payment requirement was established for FHA mortgage for a borrower with a credit score of less than 580, which now requires a 10 percent down payment - although few lenders are making this type of loan. Also, in NC and SC, purchasing a HUD (government owned) home currently has an incentive and FHA insured loans for owner occupants only require a $100 down payment.
The down payment amount is calculated by multiplying the home purchase price times 3.5 percent, or 0.035. For example, the required down payment on a $150,000 home would be $5,250. The home buyer would bring this amount to the settlement - plus any additional closing costs, although we are usually successful in negotiating for the seller to pay these. There is also an up front mortgage insurance premium that sometimes can be rolled into the loan, but sometimes cannot that might increase the amount required for settlement and closing. Down payment can come from family members and there is a matching grant program for income qualified borrowers.
The best thing to do is to work with an experienced real estate broker and lender who are familiar with the NC and SC lending requirements, incentives for first time buyers and the real estate market in general so that the purchase is tightly structured to your personal financial situation. If you appreciate an answer, please give thumbs up. For the most helpful answer, please say thanks with a best answer click.
One is if you are purchasing a HUD foreclosed home you can possibly purchase that as an FHA insured home for as little as $100.00 down. If it needs repairs the cost of the repairs is added to your down payment and held in escrow. Then once you complete the repairs the money is disbursed to the contractor that performed the repairs.
Second, is if you are purchasing a Fannie mae property that si FHA eligible and your credit score is over a 680 you can purchase their home for as little as 3% down payment with no mortgage insurance.
Third is if your credit score falls below the minuimum guidelines acceptable by the bank doing the FHA loan you can still get a FHA loan with 10% down payment. This si the least common of the scenarios and generally ti si cheaper to get yoru credit score up than it is to come up with that much of a down payment.
Coldwell Banker United
If you have more questions, give me a call or email.
If you are not yet working with a buyer-agent who has their NAID (a requirement for submitting bids through the HUD foreclosure program), I would love to assist you. If you already have a buyer-agent, I wish you Happy Hunting!
Blessings upon you...