Home Buying in 62233>Question Details

Victoria Wal…, Other/Just Looking in Randolph County, IL

Do you have to put ten percent down on a home when taking a loan out for it? And are first time home buyers still receiving up to ten percent back?

Asked by Victoria Walter, Randolph County, IL Sun Feb 27, 2011

Help the community by answering this question:



Just an FYI... FHA allows a seller credit of up to 6% of the purchase price.

0 votes Thank Flag Link Tue Mar 1, 2011
Hi Victoria-

You can also obtain an FHA loan if the property is eligible and that is 3.5% downpayment with up to 3% in closing costs to the buyer. I also have lenders who have a 5% downpayment on a conventional loan.

You can not receive money back at closing. The only credit allowed on a HUD (closing statement) is a closing cost & pre-paid credit.

I hope this helps!
Web Reference: http://LauraKarambelas.com
0 votes Thank Flag Link Mon Feb 28, 2011

You do not have to put down 10% to get a mortgage loan. There are loans available with Zero down (USDA & VA) and 3.5% down (FHA). Based on your zip code you may be eligible for a USDA loan, assuming all other guidelines are met. Have your mortgage person look into that option for you.

Good luck,
0 votes Thank Flag Link Sun Feb 27, 2011
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