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

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3
Laura,

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

Mike.
mcline@waterstonemortgage.com
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
Victoria,

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,
Mike.
mcline@waterstonemortgage.com
0 votes Thank Flag Link Sun Feb 27, 2011
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