Home Buying in 19149>Question Details

Jie, Home Buyer in Oxford Circle/ Castor,...

How much down payment should I make is the best?

Asked by Jie, Oxford Circle/ Castor, Philadelphia, PA Sat Mar 13, 2010

Help the community by answering this question:

Answers

5
Jie, What Mike said below is the minimum required down payment and overall I'd recommend putting down the minimum. However, a conventional loan requires only 5% down not 10%. I'd recommend speaking to a loan officer in order for him/her to analyze your credit/income/assets/ etc and together you can find the best program for you. If you don't have a loan officer I'd appreciate the opportunity to earn your business.
cbahnsen@mortgagenetwork.com PH: 610 -622-2212.
1 vote Thank Flag Link Sun Mar 14, 2010
my advice is to put the minimum payment down. It is better to have savings in case somthing were to happen, such as illness, loss of job, etc. Once you put the money into the home you cant get it back unless you sell.
1 vote Thank Flag Link Sat Mar 13, 2010
Jie,

In this tough economy, I recommend only putting down the minimum required and keeping the rest of your money in the bank for emergency. If you feel the monthly payment is too high, then you will need a larger down payment. Speak to a lender who offers multiple types of loans. The minimum down requiremens are:

VA & USDA - 0%
Fannie Mae Homepath - 3%
FHA - 3.5% or $100 if HUD REO (property must be eligible for $100 program)
Conventional - 10%

Good luck!

Michael Cline
mcline@enterprisemortgagefunding.com
1 vote Thank Flag Link Sat Mar 13, 2010
The best advice is to talk to your lender ... sit down and see what you are comfortable with every month as a mortgage payment. Usually it is best to, especially in a competiive market, to put down as much as you can afford and feel comfortable with. Usually, with 20% down you won't have PMI, as opposed to loans that are 10% or under...with a FHA loan you could pay as little as 3.5 per cent down, but you will be paying points (usually) and MI/PMI...So the best thing to do is have the lender show you what your options are and make a choice after looking at all options. (Agan, the srongest offer is one with as much down as possible and if you are comfortable with the monthly payments that might be the way to go---also your mo. payments should be smaller and more managable with more money down. Get yourself a good loan broker and discuss your needs with them...referrals are always the way to go if possible. You might even be able to get a referral through your Real Estate Agent...most have loan people they have had good experiences with. Hope this helps. Rose Alain Pinel Realtors
Web Reference: http://www.apr.com/rnied
1 vote Thank Flag Link Sat Mar 13, 2010
V.A. (veterans only and USDA loans are 0% These are considered last on the list in most multiple offers.
FHA is 3.5% down and is next to last in the multiple offer scenario.

Normal loans that are usually between 10% and 20% down are better and all cash is best.
0 votes Thank Flag Link Sat Mar 13, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer