Home Buying in Houston>Question Details

Trulia Houst…, Other/Just Looking in Houston, TX

How large a down-payment should first time homebuyers expect to put down?

Asked by Trulia Houston, Houston, TX Tue May 14, 2013

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So many first-time buyers are naive when it comes to the cash portion of the home purchase. Many understand that FHA-insured financing requires "only" a 3.5% down payment ... so they figure that they can walk in with their $3500 and come away with a $100,000 home. Or if they qualify for a zero down VA or USDA loan, it's "sign here and the house is yours." This is precisely why I will not show property to buyers until they've seen a lender.

My guideline for a home purchase with a minimal down payment (3.5% FHA) is 6% to 8% in cash, which should cover closing costs and prepaids as well. For VA and USDA loans, I use 3% to 5%.
Web Reference: http://www.har.com/algeffon
0 votes Thank Flag Link Wed May 15, 2013
The down payment amount is contingent upon what the buyer can afford and what is required for the loan program that the buyer is using.

VA, FHA, Conventional, City program, County program, State program and others…all could have different down payment requirements.

The buyer – whether first time or repeat buyer – must investigate with a qualified lender as to what program is the best for their circumstances.
0 votes Thank Flag Link Tue May 14, 2013
As a first time home buyer you should expect to put anywhere from 3.5%-5% down depending on the type of loan (FHA or Conventional) that you apply for. If you are a Veteran or have served in any of the armed forces you may qualify for a VA loan which has a 0% down payment. If you would like a list of lenders please feel free to let me know. 713-987-7000 Good luck!
0 votes Thank Flag Link Tue May 14, 2013
I don't think there is any special programs for first time homebuyers. Just the regular programs for everyone. Lenders will be able to tell you more about that part,
0 votes Thank Flag Link Tue May 14, 2013
FHA: 3.5%
USDA: 0
VA: 0
Conventional: 5, 10, 20%

Good luck!!
0 votes Thank Flag Link Tue May 14, 2013
Depends on the program that you might qualify for. FHA loans have low down payment (3.5%) and it can be $100 on HUD foreclosures. There are programs for VA with no down.

Check different lenders as they might have different requirements when it comes to credit score.
0 votes Thank Flag Link Tue May 14, 2013
It depends on what company you choose for your loan. Some companies have 3%, 5%, or 20%. Other companies have down payment assistance. If you are looking to purchase I would definitely say shop around for the best offer for you. If you need any help with the loan process or in looking for a home please feel free to contact me. My cell is 254-640-4371. My email is patricia.isom@yahoo.com
0 votes Thank Flag Link Tue May 14, 2013
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