Home Buying in Mill Valley>Question Details

Howard, Other/Just Looking in Mill Valley, CA

How much are lenders typically asking for as a downpayment (as percent of home price) in this economy,?

Asked by Howard, Mill Valley, CA Thu Mar 5, 2009

assuming an excellent FICO score?

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5
robert chomentowski’s answer
Very recently the new stimulus package raised the FHA jumbo loan limit back to $729,000. So you could buy a $755,000 home with 3.5%. With the price declines you can buy a lot of the houses in Marin with 3.5% down FHA loans!
0 votes Thank Flag Link Fri Mar 6, 2009
Howard,
Your question has multiple answers. A lot depends on the price range of the property. If you're doing an FHA loan, you can put down as little as 3 1/2%. If you're doing a conventional loan, most likely 20% will be the reqired down payment. If you're in a higher price range, you may be required to put down 25-30%. ($900,000 price range and above)
Once we have more information about your specific situation, your earnings, your credit score, etc., we will be able to give you a better idea.
We can help you with any Marin properties or southern Sonoma County properties.

Mary Kay and Kathy
0 votes Thank Flag Link Fri Mar 6, 2009
If you have a credit score of 720+, you can get Mortgage Insurance on conventional financing with 10% down. However, just about everyone in California who would like to put less down is going with an FHA loan, which only requires 3.5% down. Plus you might find that you get a better interest rate.

These guidelines only apply to declining markets like California, Florida, etc. If you live in a non-declinign market, the guidelines are a bit looser.

If you have any questions, please let me know.
Luke Allison
Flagstar Bank
828-777-8828
Luke.Allison@flagstar.com

Apply Online: flagstarloans.com/lallison
0 votes Thank Flag Link Thu Mar 5, 2009
FHA loans require a 3.5% down payment. Conforming loans are going to require anywhere from 5-20% depending on the area, the type of property, and the borrower's qualfications. A lot of this has to do less with lender guidelines but more with PMI companies and their willingness to provide mortgage insurance for those homes with less than a 20% down payment. It doesn't matter if a lender will approve you for a 5% down loan if no company will provide PMI.

Speak with a local, reputable lender who can outline the available programs you qualify for
0 votes Thank Flag Link Thu Mar 5, 2009
Hi Howard,
Typically lenders are still wanting 20% down on homes in Marin. but if you were eligible for an FHA loan then the down payment is less. let me know if you want me to check it out further for you.
Best regards, phillipa Crsiwell
0 votes Thank Flag Link Thu Mar 5, 2009
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