Technically there is no amount of reserve required when buying with an FHA loan. You need to have the 3.5% down (2.5% can be gifted) and the seller can contribute 6% for closing cost. This would leave you with a total out of pocket expense of $3000.
That was the technical analysis. Realistically you should have enough to put down and at least 6 months of reserves in t the bank after you close. So letâ€™s say your total mortgage payment including taxes and insurance is $2000. You want to have at least $12000 in the bank after you close.
Buying a home is not fun if your cash poor after closing. There are a lot of unexpected expenses that come out after closing. Donâ€™t leave yourself penniless at closing.
Getting 3% is great! Being able to comfortably afford your payment is more important!
best of luck to you and if I can help with any of your financing needs please give me a call.
Well you will need at least the 3% down payment (multiply %x300,000), but I would recommend you save quite a bit more then that. There are closing costs to consider and they vary, depending upon who you use.
I would save at least 20% of the purchase price to be safe.
If you need more informaltion regarding home loans for employees who work for the Calliforniia public schools & colleges then feel free to contact me.
Good luck to you...
Are you a first time buyer? If you are you may consider FHA loan which does not require downpayment but you need to save for closing cost(about 3%). Just remember not all homes/conds. qualify under FHA loans. Your agent need to check the homes to see if you can get FHA loan to purchase them.
Before you go shopping you need to talk to a lender. If you need referral I have 2 that I know. Please call me if you need their names and phone numbers.
Prudential California Realthy
Budget for inspection, earnest money, appraisal.
Lynn911 â€“ ~ National Featured Realtor