There are FHA loans available which start at 3.5% down. So don't be discouraged. Get the information so that you can be empowered to make an educated decision on your real estate and financial goals.
Best of luck to you.
The house is listed for sale at $300,000. Some lenders require you to have a 20% down payment. That would translate to $60,000. Not all lenders have the same requirement. Currently, the FHA requires just 3.5% down on its loans.
Please consider that there are advantages to having a large down payment. With a down payment of 20% or more, you are not required to pay for mortgage insurance. That is a nice savings for you.
With less than 20% down, mortgage insurance or PMI will be included in your monthly payment to protect the lender in case you default on the mortgage. For FHA loans originated on or after April 18, the annual mortgage insurance premium will increase from 0.9% to 1.15% of the loan amount. That means your monthly payment will increase by about $250 per month just for PMI.
If you negotiate with the Seller, you may be able to get the home price at a lower amount and, thus, a lower down payment.
A local lender and RealtorÂ® can help you to identify all options available to you. Then, you can make the decision that is right for you.
Best of luck,
Contact a mortgage broker who will qualify you for a loan and determine what your down payment will be
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors