Financing in Oakland>Question Details

Gabby Delgato, Other/Just Looking in Oakland, CA

What is a low down payment?

Asked by Gabby Delgato, Oakland, CA Thu May 23, 2013

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Low down payment could also be NO down payment (as with VA loans).

But if you're buying during a seller's market where you will compete with many buyers some of whom are paying cash, you may be tuned out by sellers who don't want to deal with the many restrictions of VA and for that matter, FHA loans.

Low down payments will rarely win in a seller's market.
2 votes Thank Flag Link Tue Jun 4, 2013
There are low down payments programs with either 15, 10 and even 5% that have no MORTGAGE INSURANCE, you want to find out if the property and you qualify for any of these programs.
1 vote Thank Flag Link Fri Jun 14, 2013
Well there are some loans that do not require any down payment.

For the most part, (there are couple of others) there are two zero down loans VA loans but you have to be a vet to get that, there are USDA loans but those need to be in certain areas and there are income limitations.

There is CalHFA which is 1/2 % down. There are limitation restrictions

There are 3% conforming loans to $417,000, which require good credit.

Than as most people have mentioned here there is FHA which requires 3.5% down and allows for less than perfect credit. It can also go up to loan amounts of up to $729,750 in some areas.

When I preaprove someone, I like to work closely with the realtors to make sure the write correctly, to make sure that people with a low down payment are going to have enough money to close.
1 vote Thank Flag Link Fri Jun 14, 2013
Hi Gabby,

A low downpayment is usually 3.5% of the purchase price. For example, on a $200,000 home the downpayment would be $7000. You also need to consider how much the closing costs would be and in many cases you can ask the seller to give you a credit towards closing costs of between 3-6% of the purchase price. I work with a lot of first time homebuyers and I love the challenge of making it work and having a can-do attitude.
1 vote Thank Flag Link Tue May 28, 2013
usually below 20% requires pmi. I would classify anything under 10% as low.
0 votes Thank Flag Link Fri Jun 14, 2013
The lowest down payment is 3.5% of the sales price. But in this market it is hard to find a seller willing to accept that type of purchase offer.
Best wishes to you
0 votes Thank Flag Link Fri May 24, 2013
If you can, make the down payment just low enough so it does not trigger Mortgage Insurance (which is expensive). There are low down payments programs with either 15, 10 and even 5% that have no MORTGAGE INSURANCE, you want to find out if the property and you qualify for any of these programs.

Feel free to contact me for more details
0 votes Thank Flag Link Thu May 23, 2013
Hi Gabby,

I am in Oakland and we have an FHA (96.5% financing) plus a silent second of (3%) for a total of .5% down. Great program and a lot of my clients have taken advantage. There is an income limitation but is based on the household count and reasonable for Alameda County.

Feel free to contact me directly!

Ivan Diaz
0 votes Thank Flag Link Thu May 23, 2013
An FHA loan requires that you put a minimum of 3.5% down on a loan. Homepath loans only require a 3% down payment . VA loans require 0% down! But of course you need to be a vet. Those are the lowest down payments around. If you are planning on writing an offer and need to be competitive 20% down is pretty standard and anything above 20% is going to make your offer more appealing. Good Luck!
0 votes Thank Flag Link Thu May 23, 2013
conventional is 20%
So I will categorize as "low down payment" anything below 20%
0 votes Thank Flag Link Thu May 23, 2013
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