The higher the percentage in down payment only gives a better feel as who will be less likely the looser. i.e. the bank not you.
But in SF, this priced out many people like you. i.e. force you to be a renter, paying your landlord's mortgages.
To you, a realistic question is, is it too far across the bay to buy a larger, better & cheaper home? There are still many opportunities just cross the bridges.
The higher down payment some time is a good play when present to the seller...
If you have the money and do not need to use it, put them into as down payment basically means buying into your equity....which in SF area, has a higher then normal return in short time...
See "ACTIVE" listings for sale in real-time in San Francisco
$$ BUYER COMMISSION REBATE 50-60% / SELLER DISCOUNT 50% $$
Flavio Tejada, Owner/Broker, Realtor, MBA-Finance
And for loan amounts over $1.1MM you simply need to have a 15% down payment. This again depends entirely on the final purchase price. If you have questions or would like to review all the different loan options please contact me.
i have a client whom requires a house for purchase and his kids need school
they have completed their 9th in the IGCSE level English Maths need admission for 10th grade and 6th grade
Kindly let me know of the least budgeted CAD $ at the earliest i need a full data with school whom permit transfer - with house near by
There are various programs that allow let than 20% down for the purchase of primary residence. On conventional loans many lenders offer as little as 5% down but will require PMI (private mortgage insurance). FHA program allows 3.5% down with PMI & there are others, but each have different guideline requirements.....so may want to check with several mortgage lenders & inquiry about options available for your situation.
So, because the buyer didn't have a down payment, their monthly payment was about 39% higher. No down = less house and higher payments.
The simplest answer is that at 20% down, you avoid either mortgage insurance (PMI or FHA equivalent) or having to take a second mortgage (piggyback loan). This is the reason 20% remains the target for many, not that no other options exist.
Several agents also touched on another important component. If the real estate market is highly competitive, a larger down payment tends to speak louder to the seller and make your offer look stronger.
Best of luck,
I would agree with my colleague's sentiments here. There are a multitude of loan options that start at 0% down all the way to 90% and everything in between. The key is finding a good lender who you can trust and work well with. If you have any friends or family who can connect you that's always great, but in the event you don't please feel free to reach out to me as I work with some of the best lenders in the city. Iâ€™m always happy to be a trusted resource for all things real estate in San Francisco and the Bay Area.
All the best and good luck!
Realtor, Vanguard Properties
1. FHA Loan
2. Conventional 97 Loan
3. Fannie Mae/Freddie Mac
4. The Home Path Program
5. State Specific Program
6. VA Loan
Best of luck.
Kam @ 1st Tech Federal Credit just closed a conventional loan for me with 5% down... and she's fast. E-mail email@example.com 650.845-4983
Please tell her Monika thinks she's the rockstar of lenders.
Although a generic answer, 20% down or greater is the most common number that we care currently seeing on homes that are not FHA eligible. Although there are always exceptions, the bottom line is that most sellers and their agents will be looking for that 20% down on normal sales.
Obviously, you can think about it from the standpoint of what you DO have to work with and adjust your max price point from there. That being said, you should be speaking to a licensed financial professional to understand your true budget, etc.
I wish you the best on your search!
George Langford - Senior Sales Associate
Founder of SevenSquaredSF.com and PremierPeninsulaProperties.com
Climb Real Estate Group
251 Rhode Island, Suite 105
San Francisco, CA 94103