Home Buying in Ormewood Park>Question Details

Rita Diane P…, Home Buyer in Vermilion, OH

How much money do I need for a downpayment on a FHA first time home buyer house priced $35,000.00

Asked by Rita Diane Palmer, Vermilion, OH Mon Nov 25, 2013

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The answer is 3.5% but the real question is what lender can/will do that amount. I have 5 preferred lenders I work with from big box to home grown. Call me with your email address and I'll send my list over. 404.457.0869
0 votes Thank Flag Link Mon Nov 25, 2013
It depends loans under 50,000 normally fall under high cost. FHA typical down payment would be calculated, multiply the price of home by 3.5%. You should speak with a loan officer to discuss it further. Just remember if it falls under high cost the amount would be more.
Good luck
Stephanie Nelson
BUYER METRO BROKERS
0 votes Thank Flag Link Mon Nov 25, 2013
3.5% is the minimum down payment required for all FHA loans. So for a home priced at $35,000 this would be $1225. In addition to the down payment, you'll also need money to cover closing costs, property taxes, and insurance. This could easily add up to another $3,000-$5,000.

FHA permits you to ask for up to 6% of the purchase price from the seller to cover closing costs and prepaid items (but not down payment). In addition to that, you are permitted to use a gift from family to assist you with any of these items.

The bigger issues would probably be with the property and the loan amount.

In order to qualify for FHA financing, the home must meet minimum FHA standards. No health or safety hazards and the home needs to be complete. In other words, a home requiring a lot of repairs (a "fixer upper") will probably not qualify for an FHA loan.

In addition, most lenders will not loan that small of an amount. It's just not profitable because of the costs of actually making the loan. I'm not saying no one will loan you the money. You can probably apply through a local bank or credit union. It's just that you probably wont have a whole lot of say as far as selecting the lender with the best deal.

Good luck and I hope this helps!
0 votes Thank Flag Link Mon Nov 25, 2013
You'll be hard pressed to find a Mortgage Lender at loans below $50K. 3.5% down is the min down on an FHA. Perhaps you can find a private party selling their totally paid off property and have them be the lender. A lot of people would love to be making 4.5% (or more) on their property, the unrealistic ones will want 100% cash up front. Good luck in your search.
0 votes Thank Flag Link Mon Nov 25, 2013
100% CASH will be more realistic.
Flag Mon Nov 25, 2013
First of all, I would be VERY suprised that you would find a home in Ormewood Park for $35,000. Secondly, one that low priced that would even begin to meet FHA minimum property standards. On top of that, you are going to have an issue with a small loan amount once you have made the required 3.5% down payment for FHA.

At Prospect Mortgage, we do not have a minimum loan amount, except for renovation mortgages. All Renovation Mortgages do require a $50,000 minimum loan amount. While other loan programs do not have a set minimum loan amount, all mortgages must pass the various Federal and State fee compliance tests for predatory lending. Generally, loan amounts under the lower $30,000's will not pass those required tests.

If you are looking to purchase a property, working with a knowledgeable and seasoned loan officer is critical in today's market. Getting Pre-Qualified is the only way for you to find out your mortgage options. To get Pre-Qualified for your purchase, you can submit your request online at http://www.rodneymason.com to get started.

Regards,
Rodney Mason, NMLS #151088
Sr Loan Officer
Prospect Mortgage
825 Juniper St NE, Atlanta, GA 30308
Office: (404) 591-2453
rodney.mason@prospectmtg.com
Apply Online at http://www.rodneymason.com
Licensed in Alabama & Georgia with over a decade of mortgage lending experience.

Prospect Mortgage offers a full selection of mortgage programs including:
Conventional | FHA | FHA 580-639 FICO | FHA 203(k) Renovation (Streamline & Consultant) | HomePath® | HomePath® Renovation | HomeStyle® Renovation | VA | USDA | GA Dream | Jumbo Financing.
0 votes Thank Flag Link Mon Nov 25, 2013
You will need 3.5% as a down payment which comes out to $1,225. You will also have closing costs which will range from around 3% to 3.5%. I used 3.25 % which is $1,137.50. Please let me know if you would like my help.
Patricia Queen
BIGHTSTAR at Keller Williams Midtown
404-388-0400
patricia@followbrightstar.com
Flag Mon Nov 25, 2013
You will need 3.5% down payment. Let me know how I can help.
0 votes Thank Flag Link Mon Nov 25, 2013
None!
Why? Because you will be paying CASH for this home.
It will be extremely hard to find a lender who will consider a loan of $35,000.
It willl be difficult to find an FHA approved property at the $35,000 price point.
The lowest FHA downpayment availble to most home buyers is 3 1/2%
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Now would be a good time to chat with a Vermillion, OH REALTOR to discuss the buying process and what is possible IN YOUR LOCATION..

Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
Move to the Front of the Line
(http://FirstLookHomes.us)
0 votes Thank Flag Link Mon Nov 25, 2013
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