Consuela Mol…, Home Buyer in Philadelphia, PA

Would 8,000$ be a good down payment on a house?

Asked by Consuela Molten, Philadelphia, PA Tue Apr 24, 2012

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Answers

13
Hi Consuela,

Depending on the price of the house you want to purchase, $8,000 may be more than enough for a down payment. However, you also have to consider other additional expenses to close and make settlement.

Consider that you get pre-approved for an FHA mortgage, where you need 3.5% Down Payment. Your $8,000, would allow you to possibly purchase a home for as much as $220,000. Your 3.5% Down payment requirement would be $7,700.

If you lack the funds for the additional closing costs, up to 6% could be possibly built into the purchase amount. However, take note that whatever you add to the price as a Seller Assist increases your Down payment requirement. Let's say you buy the house for $220,000. You need the full 6% Seller Assist, so you would in essence be offering approximately $234,500 and asking for about $14,000 returned to you in the form of a credit from Seller toward your closing costs at settlement. Your down payment would be 3.5% of $234,500 = $8,207.50.

Hope this helps answer your questions. Please feel free to call me with any other questions or concerns. I'd be happy to assist you in finding your next home and negotiating a good deal for you.
Looking forward to speaking with you soon.

All the best,
Larry Lichtman
REALTOR, Property Manager
Your Real Estate Resource For Life
Direct Cell: (267) 254-7994
1 vote Thank Flag Link Tue Apr 24, 2012
thats a good amount to base a down payment. If the agent you will work with can get you a assist you could make out great with $8000.00
0 votes Thank Flag Link Tue Jun 12, 2012
YES.

All the Best John + Sheri 215-757-2889

http://www.homecatch.com/search_homes
0 votes Thank Flag Link Sun Jun 10, 2012
When you buy a home you have to have down payment and closing costs. You can get seller assist for closing costs depending on type of loan. You should sit down with a lender and see what you qualify for and the amount of money you need. The amount you need is based on price of the house . You will also have to escrow an amount with the lender for taxes and insurance. You also need money to reimburse seller for taxes already paid by seller.
0 votes Thank Flag Link Sun Jun 10, 2012
Hello Consuela,

This depends on the type of house and the type of mortgage program you are looking into buying/applying.

If FHA - then it should be 3.5% downpayment (as other agents mentioned). In this case, the house you'd be buying will cost 228.6K. Another story is if you want to buy a house that costs 228.6K, or if you feel it is affordable for you...Yet, because there will be mortgage insurance in any program that you would go through unless you put down 20% (in FHA it will be called MIP and in conventional mortgages it will be called PMI), and mortgage insurance is not tax deductible - maybe you should use 8K as a larger downpayment. As an example, 8K could be 20% down if the property costs 40K...
The more you put down, the smaller PMI you'll pay.

Please consider that there are other expenses involved in buying a houses - like home inspections, home/flood insurance, moving expenses, unexpected repairs after you buy, closing costs, and many banks require reserves (money left over, in case a person looses their job).

It's really great that you are planning your purchase - and collecting info that will help you do that.
Getting together with your agent, as well as a mortgage person and asking them to go over the buying process (from beginning to the end, so there are no surprises) will be another good thing to do.
Ask your mortgage person for GFE (Good Faith Estimate) of closing costs and other costs.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
IrinaKaran@gmail.com
0 votes Thank Flag Link Wed Apr 25, 2012
Hello Consuela Molten-Jackson,

The answer is YES.

Call us for a confidential talk.

We can get you through the process with a smile :-)

All the Best John + Sheri Curci RE/MAX Properties 215-757-2889
Web Reference: http://www.homecatch.com
0 votes Thank Flag Link Tue Apr 24, 2012
Hi, Consuela.

Honestly, it depends on the price of the home. If you need a mortgage in order to purchase the home you have in mind, FHA will allow you to put the least amount down (3.50% of the purchase price).

If you need to discuss the details of this transaction, please feel free to reach out.

Best,
Tim

Timothy M. Garrity | REALTOR®
U S Spaces, Inc. | #RS314897
267-879-2716 - Call & Text
PhillyUrbanLiving@gmail.com
PhillyUrbanLiving.com
0 votes Thank Flag Link Tue Apr 24, 2012
If you are referring to a good faith deposit, then yes, although it typically depends on the price of the home. If you are referring to mortgage down payment, then it is usually regulated by certain standards, ie, 3.5% of the purchase price. Feel free to contact me for a more exact explanation to your precise situation.

R. Eric Axelson, Associate Broker
Kurfiss Sotheby's International Realty
267.507.2287 d
axelson@kurfiss.com
Web Reference: http://kurfiss.com
0 votes Thank Flag Link Tue Apr 24, 2012
Without much information, are you purchasing in cash, or with a mortgage. If purchasing with a mortgage the downpayment amount will be dictated by the type of loan, therefore visit with any licensed loan officer to determine qualification, the type of loan, how much down, etc.; be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously. If purchasing with cash, discuss with your agent, he/she can better advise...
0 votes Thank Flag Link Tue Apr 24, 2012
It depends on the price of the home, how much debt you owe and a few other things. Feel free to contact me directly at 267.499.0011 or email me natasha.james@c21ag.com if you have any other questions or concerns.

Natasha James
Realtor
267.499.0011
natasha.james@c21ag.com
Century 21 Advantage Gold
0 votes Thank Flag Link Tue Apr 24, 2012
Depends on the price of the house and what the rest of the information on your buyers financial information sheet looks like (how much debt you have, how much you make yearly, etc.)

Rebecca Utermohlen
REALTOR
Coldwell Banker Realty Corp
215-896-1935
rutermohlen@cbrealtycorp.com
0 votes Thank Flag Link Tue Apr 24, 2012
This completely depends on quite a few factors - the price of the home, what type of financing you have, if you also have money for closing costs, etc. This question is impossible to answer without knowing more information.

I would suggest talking with a mortgage professional and finding out what you can qualify for and how much cash you need to have on hand.
0 votes Thank Flag Link Tue Apr 24, 2012
Depends on your credit, the amount that you intend to borrow, and your reserves after closing. Any mortgage loan officer can pre-qualify or pre-approve your lending ability. It is the right thing to do prior to viewing property. Gives you and your agent the range within which you can buy.
0 votes Thank Flag Link Tue Apr 24, 2012
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