Home Buying in League City>Question Details

Crystal, Home Buyer in

How much do you need to put down to buy a house?

Asked by Crystal, Tue Feb 7, 2012

Credit score is not great it's in the low 600's. We want to purchase a house that's around $175,000.

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Jim Simms’ answer
FHA's minimum is 3.5%, VA is zero, and some areas offer down payment assistance. I would follow the advice of my Realtor, if you are not working with one that is the first step, hook up with one you trust. Second step it to get preapproved for any financing you may need, if any. Have your Realtor introduce you to the loan officer they trust the most. Gather all of the support documents that will be needed to apply for a loan and meet with the LO face-to-face, have them walk you through the process and options available, good luck, home this helps,
1 vote Thank Flag Link Tue Feb 7, 2012
Get a really good realtor with connections to good loan officers. There USDA loans with nothing down. If you are a vet there are still more programs and there are grants available as well that helps your down payment!
0 votes Thank Flag Link Tue Oct 2, 2012
All loans offer different down payment options. We have local banks here in Iowa City that will do 100% financing on ARM products. FHA and VA have guidelines and often have smaller down payment requirements. You will find that fixed rates want 10-20% down, which used to be the normal mode of financial homeloan transportation...but times have changed.

One thing is certain-these rates are exceptional right now. Locking the rate in now for the long haul is smart, both from a borrowing and investment standpoint... if you think you will be in the area for some time. Great time to buy Iowa City Real Estate...or property in other college towns with like demographics.

0 votes Thank Flag Link Fri Feb 17, 2012
To make things easier as far as dollar amounts go, the 3.5% on a $175,000 is $6125. You will have to add the other expenses listed below to that amount, unless you can work a seller's concession into your purchase. That is where your purchase price is increased to cover your closing costs, then the 3.5% is calculated off that. The catch is that the house has to appraise for the higher amount. If you or your spouse are a veteran, you may qualify for a VA loan with no money down.
As far as loan with 5% down go, your credit scores need to be higher to get those in most instances. Even with an FHA loan with 3.5% down, it is harder to get if your score is below 620, and sometimes there aren't as many choices with a score between 620 & 660. You may want to see if there is something you can do to increase your scores.
0 votes Thank Flag Link Fri Feb 17, 2012
Hello Crystal,

There are programs which offer down payment help for first time buyers. The min credit score is usually around 640.

Contact HUD at 202-708-1112 or visit HUD.GOV

They can provide resources for first time buyers and buyer education materials.

Best of luck to you,
Kawain Payne, Realtor
0 votes Thank Flag Link Fri Feb 17, 2012
The amount of the down payment can range from $0.00 for VA loans (qualified VA benefit recipients) to 3.5% for FHA loans (most buyers) to 5.0% for conventional loans. Investors will need 20% and those with some credit problems may be required to have more down payment. Do remember that the down payment is not the only amount of money that you will need at closing. There are closing costs including insurance, escrow set up, survey, etc. I can help you even if you have less than perfect credit!
0 votes Thank Flag Link Fri Feb 17, 2012
For a personalized answer visit with any licensed loan officer; generally FHA loans do require 3.5% down....
0 votes Thank Flag Link Tue Feb 7, 2012
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