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How large a downpayment do you need for an FHA loan?

Asked by Trulia Charlotte, Charlotte, NC Mon Apr 1, 2013

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Margaret Moore’s answer
FHA loans are a good option for buyers. Here's link that explains the downpayment requirement, among other things. http://portal.hud.gov/hudportal/HUD?src=/buying/loans. Your lender is also a good resource.
Hope this helps,
Margaret Moore
0 votes Thank Flag Link Sat Apr 6, 2013
Good morning:
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.
1 vote Thank Flag Link Tue Apr 2, 2013
Typically 3.5 percent there are also several programs out there that can help with down payment assistance. Please contact me if you would like to learn more. Charlottehomepro@gmail.com
Web Reference: http://www.jonnyagent.com
0 votes Thank Flag Link Tue Apr 2, 2013
FHA loans require 3.5% down. This can be a gift from a family member if necessary and/or the sellers may contribute to closing costs as well.
0 votes Thank Flag Link Tue Apr 2, 2013
A typical FHA loan requires 3.5% of the sale price as a down payment. There are other programs out there where the down payment can vary depending on other variables and factors.

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.

Dave diCecco
Realtor/Broker
Coldwell Banker United
Cell: 7041-519-7895
ddicecco@cbunited.com
http://www.davedicecco.com
0 votes Thank Flag Link Tue Apr 2, 2013
FHA typically is 3.5% down. Some foreclosures can be financed and only require $100 down. Depending on your credit there is another product out there that is a conventional loan that would only require 3% down.

If you have more questions, give me a call or email.

Abby Nelson
704-890-1860
abbynelson@bellsouth.net
0 votes Thank Flag Link Tue Apr 2, 2013
If it is a normal purchase, 3.5% is the required downpayment for an FHA loan. If, however, you are buying a home which has been returned to HUD through a foreclosure process, the downpayment required is only $100. You may bid over the asking price on a HUD foreclosure to assure that you win the bid. In that case, you must pay the difference between the asking price and the offered price, plus the $100 down payment. For example, if you wanted to purchase a home listed at $125,000 but you know it is going to be highly desirable and you are willing to bid $127,000 to help give you an edge over a competing bidder, you would have to bring the $2,000 difference between the asking price and your bid price, plus the $100 for a total of $2,100.

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...
Jan Teel
TEEL Realty
704-641-0267
0 votes Thank Flag Link Mon Apr 1, 2013
3.5% of sales price...if you are doing a HUD home it is $100 down...
0 votes Thank Flag Link Mon Apr 1, 2013
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