Financing in 91436>Question Details

LBBSKA, Home Buyer in Los Angeles, CA

What percent down are lenders requesting in Los Angeles when purchasing a new home.?

Asked by LBBSKA, Los Angeles, CA Wed May 9, 2012

What percent down are lenders requesting in Los Angeles when purchasing a new home. It was ~20% a few years ago...wondering if this had decreased any now that the market has (somewhat) stabilized a bit.

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Roger Jarnigan’s answer
I would suggest that you contact a direct lender. Easier to qualify and many "out of the box" financing. I have used Michael Razak for years at Madison Lending, Rates are great right now. He will guide you through the process and design a loan for you. Whether it be as little down as 3.5% FHA up to what ever you choose as a down payment to make you payments affordable. Best thing about Michael, is you tell him what you want you payment to be and he will let me know what price range to look at for you. Any other questions - Do not hesitate to ask.
Michael's contact number is 818-288-6851

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0 votes Thank Flag Link Wed May 9, 2012
I really depends on the situation. 20% is still a standard amount, but we see 5% loans from time to time. The better your credit score and history, the less you'll need to put down.

I've had buyers who needed to put 50% down in order to qualify for a loan. It all depends...
1 vote Thank Flag Link Tue Mar 11, 2014
In the current market condition, the more the better! You are going to run into a problem wherein a lot of the buyers are all cash buyers or with a large down payment. Today if you go FHA you almost have no chance as the sellers will not deal with that.
1 vote Thank Flag Link Fri Jun 21, 2013
It is not up to the lender but.....mostly up to you: how much you have, how much you make, your credit health, what kind of loan you are approved for( VA allows 0% down, FHA starts with 3.5% which can be a gift, Conventional starts with 3% and up), what kind of real estate you want to buy, etc. Do talk to a good loan officer, or maybe even few( initial consultation should be free). If you need a recommendation of local lenders, let me know. I have a trusted lender for any situation and they do perform.
Good luck!
0 votes Thank Flag Link Mon Nov 24, 2014
how much you have or willing to pay down?

It depends on a type of a loan, but usually the larger down payment~ the stronger your position against other offers.
For example: if the seller has two similar purchase price offers: FHA with 3.5% down and a conventional buyer with 20% down~ guess who would have the stronger offer.
Also the success of your offer depends on other!! terms. For example: 5% FHA loan and 5% conventional loan~ in this case all will depend on terms of the submitted offer( do you ask for closing costs assistance? repairs? special contingencies? etc.) and the fact if the property is FHA approved( most of condo communities these days are not FHA approved).
Let me know if you have any question, I'd be happy to help.
Warm regards,
Inna ivchenko
0 votes Thank Flag Link Mon Dec 16, 2013
email me for details

Shaida Tafreshi
RPM Mortgage
0 votes Thank Flag Link Sun Jun 23, 2013

Both Sacralender and Sally are correct. You would need to speak with a lender to find out which programs you might qualify for and how much you qualify for. Obviously, the less you put down the higher your payment would be.If you need recommendations for a local lender, I am happy to provide that for you.

Best regards,

0 votes Thank Flag Link Wed May 9, 2012
Sally’s right. It still amazes me that so many people believe this myth. FHA has a 3.5% down payment; VA has none; USDA has none (but is only available in rural areas.) Then in most places moderate income homebuyers (who are not veterans and who are not buying in rural areas) can use programs to get their down payment to little or nothing.

It’s almost as prevalent as the notion that homebuyers 50-60 years ago all put down 20%. I was giving a talk a few months ago when someone said that and I quickly assessed that my parents, my wife’s parents, and their siblings almost all bought their 1st homes using either VA or FHA financing. (All of them are or would be in their 80s now.)
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0 votes Thank Flag Link Wed May 9, 2012
All depends on the loan! 20% has never been a requirement. What type of loan are you talking about? You can put as little as 3.5% down with an FHA loan. But then of course you'll have a higher payment and also have to pay mortgage insurance. You can get a conventional loan for as little as 5%, 10% or 20% down. But anything under 20% you will have to have PMI (private mortgage insurance).

I have a great lender I can refer you to. Please contact me directly for her contact info.
0 votes Thank Flag Link Wed May 9, 2012
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