$3% down if you get FHA or Fannie Mae. (You go this route the closing cost will be $6.5K. 10% down if itâ€™s a house). 20% condo or townhouse. Townhouses are attached so they are considers condo. Also your FICO better be high 675-745. Anything lower youâ€™ll get slammed with a giant interest rate. I keep hearing more and more down payments will become 20% down. Itâ€™s inevitable. Pressure on banks making risky loans are over. And when they do home prices will drop even more. Question? Why are you buying in South Mountain????
Remember: In 2011 you donâ€™t apply for a mortgage. You get interrogated for a mortgage. Good luck with a mortgage.
Your loan officer should be able to anserwer that question for you. If you have not work with any loan officer yet, give me a call at 602-459-1779. I will be able to help you out.
Definitely get your own lender fast, so you'll know what you can afford and what down payment you'll need. This saves a lot of frustration and disappointment when you actually find a home you want.
Good luck, Gwen. If I can help, please shoot me an email.
For example, if a buyer has limited funds, the buyer may still quaify for an FHA loan with 3.5% down, depending of course on whether or not the house can meet FHA conditions.
Some buyers who have considerable savings may opt to put 20% down so that they don't have to pay for mortgage insurance.
Other buyers may have other qualifications (income, credit score, available funds) that will dictate how much they need to put down to qualify for a loan.
If you haven't spoken with a lender yet, that should be your first step so that you will know
1. How much you can afford
2. How much you're comfortable spending
3. What kind of loan is most suitable to your needs and preferences