Home Buying in Dallas>Question Details

Ivan Chedah, Home Buyer in Dallas, TX

Are banks still requiring 20% down payment for a home loan or less?

Asked by Ivan Chedah, Dallas, TX Wed Nov 7, 2012

The reason I ask is because I am close to being ready for home ownership, I am paying down my debt and should have a great credit score and slightly average income but I sure as heck don't have $20,000 - $30,000 down payment. So am I ready or not? Thoughts?

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Answers

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Before you start looking for your dream home, it is essential for you to start research for a mortgage broker that can explore all your financing options. Choose one that can answer all your questions and give at least two options. Mortgage broker have access to many banks, private lenders and many different programs.

Best of Luck,

Maria Cipollone

Century 21 Tenace

www,Flahomespecialist.com
2 votes Thank Flag Link Wed Nov 7, 2012
Yes...you are ready! Some fees may be increasing with FHA loans soon but you should still be able to put min 3.5% down. kudos to you for getting your credit and debt in better shape so you can purchase. Did you know the interest and property taxes (largest chunk of your monthly payment) can be a tax deduction?
0 votes Thank Flag Link Sun Nov 11, 2012
Ivan, if you are looking for a "fixer upper" in the HUD market (a foreclosed home that HUD owns), the house could possibly qualify for $100.00 down payment. I have a client purchasing under this program. Not all HUD homes will qualify however and you probably will not find out until after you've won the bid.
Good luck in your quest for the American Dream of home ownership.

Mark Couture, MSgt USAF, Ret., Broker Owner
Couture Real Estate
24511 Elise Falls
San Antonio, TX78255
210-616-6992
0 votes Thank Flag Link Thu Nov 8, 2012
Depending on where the house is and whether you served in the armed forces, you can get 0% down. These would be USDA or VA
Most people can get 3 or 3.5% down, but they often don't realize the payments are slightly higher with such a small down payment. These would be FHA

Even 5% or 10% is good and can make it easier to find a lender for you. Convetional lenders are no longer asking for huge down payments.

Whatever you have in the bank, don't expect to put it all into the closing. You will want to hold some cash for moving expenses, buying new furniture (don't do that on a credit card the week before closing), and utility deposits and so on.
0 votes Thank Flag Link Thu Nov 8, 2012
Not if you go FHA, USDA, VA, or Homepath, and you can do regular old conventional loans with 5% down...you just have to pay PMI. FHA is 3.5% down and Homepath 3%. Homepathis a good one that you might want to compare with FHA since it has different requirements for appraisals. Don't forget that the closing costs can add $3000+ to the transaction if the seller does not agree to pay them (or at least a portion of them since FHA allows 6% and Conventional allows 3% from the sellers for this). Call me if you want to talk about any of these programs 972-854-3270.
0 votes Thank Flag Link Thu Nov 8, 2012
On the outskirts of Dallas there are areas approved for 100% financing from USDA.

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
Web Reference: http://jamessimms.com/
0 votes Thank Flag Link Thu Nov 8, 2012
Hi Ivan,

You should only need 3.5-5% depends on your credit.

Please let me know if you want me to send you my lender's contact. You can email me at dixondfw@gmail.com

Thanks

Dixon
Realtor
JP and Associate
http://www.findyourtexashome.com
0 votes Thank Flag Link Thu Nov 8, 2012
You need contact a mortgage broker who can review all the particulars qualify for a loan. Most lenders are 3.5% or more as downpayment .

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
Multimillion Dollar Sales Producer
972-699-9111
http://www.lynn911.com

Follow me on Facebook
http://www.facebook.com/lynn911dallas
0 votes Thank Flag Link Wed Nov 7, 2012
Following up on what Brent said:

You need your down payment in the bank.
You need a little more for closing costs if we can't get the seller to pay them.
The lender can raise your interest rate .25% or so and cut costs.... But that is a short term strategy, not a long term strategy.
Cash reserves for loan qualifying is not necessarily needed.

Tom Burris
Mortgage Banker
DallasLoanGuy.com
(214) 763-4629 cell/text/nights/weekends(Really!!)
tomburris@dallasloanguy.com
Lending all across the entire Great State of Texas!!
NMLS# 335055
Search Dallas area MLS for FREE. No registration => http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
0 votes Thank Flag Link Wed Nov 7, 2012
Ask a loan or mortgage broker this since all depends on your score, income and expenses, and what you can actually afford to buy. Congratulations on paying down your debt it will really help! Also keep saving and minimize any spending.
0 votes Thank Flag Link Wed Nov 7, 2012
Ivan,

As you see with these responses, you don't need 20% down payment. For a $100,000 house, you will need to show approximately $5000 to $5,500 in the bank to cover your down payment and cash reserves for the lender to approve you. Also, you'll need to negotiate that the Seller pay a large portion of your closing costs (i can help you get the estimate from a lender). If you need help to get started and don't want to pay for the advice, call or text me. It's FREE. I'll walk through everything with you including the set up of your own web page that will find all properties that meet your criteria. I look forward to hearing from you!

Brent Rice, Top Recommended Broker
The Rice Group, Inc.
Website: http://www.ricegroupinc.com
214-808-3100
Brent@RiceGroupInc.com
0 votes Thank Flag Link Wed Nov 7, 2012
FHA is 3.5% down and Conventional is 5% down.
VA & USDA are 0% down

I do these loans all of the time.... Still pretty easy to buy!!!
Let me know if I can answer any direct follow up questions


Tom Burris
Mortgage Banker
DallasLoanGuy.com
(214) 763-4629 cell/text/nights/weekends(Really!!)
tomburris@dallasloanguy.com
Lending all across the entire Great State of Texas!!
NMLS# 335055
Search Dallas area MLS for FREE. No registration => http://www.ntreisinnovia.net/cgi-ntr/BR_login?0501134
0 votes Thank Flag Link Wed Nov 7, 2012
A mandatory 20% down payment is a myth right now. Although Dodd/Frank might make it harder to get FHA loans with their 3.5% down payment, and the 100% USDA loan. So do it soon. Please get with a good, local loan officer with a mortgage company, and not a bank. Be prepared to talk about your payment comfort zone and the amount you can contribute to a down payment and closing costs. Which loan will best fit your family is something that loan officer can discuss with you.

Barbara Coker
NMLS#228545
100% Home Loans All Over Texas
Licensed Mortgage Loan Officer.
Web Reference: http://www.thecokerteam.com
0 votes Thank Flag Link Wed Nov 7, 2012
Not at all. FHA loans require 3.5% min., VA 0% and USDA 0% with CONV. at 5% Min
0 votes Thank Flag Link Wed Nov 7, 2012
It depends on your credit score, reserves, income, and debt.
There are FHA loans in some situations that only require 3.5% down payment.

Best thing we can do is get you with a mortgage lender to see exactly your situation and see what type of loan works best for you.

Call me or email you and I can give you a referral to a great lender. It's free to get started and if you are not ready they can still give you some goals to shoot for.

Bruce Lynn
Keller Williams Realty
0 votes Thank Flag Link Wed Nov 7, 2012
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
You have many different Loan products.
FHA requires as little as 3.5% down payment.
Let me know if you have any more Questions
469.360.3088
0 votes Thank Flag Link Wed Nov 7, 2012
It depends on a lot of things. Call any lender of your choice and they will pre approve you, usually for free and then you'll know what you can buy and what terms.

Good luck.

Kenny
Turtle Creek Realty
0 votes Thank Flag Link Wed Nov 7, 2012
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