Home Buying in 60067>Question Details

Doxielover, Home Buyer in 60067

If I'm looking at purchasing a home for $200,000, what is the expected down payment for someone with good credit (mid 700's)?

Asked by Doxielover, 60067 Mon Mar 7, 2011

I'm a first time buyer and am not sure what to expect. I plan to talk to a bank. But was hoping to get an idea of what the minimum expected down payment would be to see if I'm at a point where it's worth discussing. I'm pretty confident I have everything else needed...good credit, good credit lines, employment history, make enough money but I don't have a ton of cash saved.

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Answers

8
Laura nailed it!!

There are many ways to come up with funds for down payment, there are at least 6 Down Payment Assistance programs alive and well in my town, check out your area. Some loans allow you to borrow the needed funds, as long as it is a secured loan. Careful the new payment gets added to your debt ratios.
1 vote Thank Flag Link Mon Mar 7, 2011
Hello Doxielover,
In order to avoid PMI (mortgage interest) a minimum of 20% down is needed. If the property is eligible for an FHA loan (government loan) than the minimum down payment requirement is 3.5% currently but you still have to pay the mortgage interest.
I suggest that you contact a mortgage broker or banker to learn more on what types of loans you would qualify for and what the requirements are. They will speak to you at no cost and you are not obligated to use them.
Hope this is helpful.
Good luck!

Laura Feghali
Prudential Connecticut Realty
1 vote Thank Flag Link Mon Mar 7, 2011
Hi Doxielover!

There are a few options out there. Conventional loans range anywhere from 5% and up. However to avoid PMI (Private Mortgage Insurance) at least 20% equity or 20% down payment is needed. FHA is 3.5% down and typically requires a credit score of at least 640 (general guidelines, some lenders have different programs).

If you are looking for a condo or Townhome (without Fee Simple ownership) go to https://entp.hud.gov/idapp/html/condlook.cfm to check if the complex is FHA Approved.

I work with a lender that has a program that is only 2% down payment with NO PMI. However, the household income would need to be below $58,000 i believe.

I would be glad to share more info with you or even help you with your home search (the Palatine area is my primary market).

Give me a call 630.429.4486 . :)
0 votes Thank Flag Link Wed Jun 19, 2013
Since you seem like you are local to Palatine - I'd be happy to refer you to one of the best lenders in the area - if you didn't purchase already. (I see your question is running on about 10 months old now..) Hopefully - you used an Exclusive Buyer Agent! (An agent who is always on your side, and they and their company never represent sellers - so there are no dual agency conflicts of interest)
0 votes Thank Flag Link Mon Jan 16, 2012
Doxielover,

Why set the bar so low, "get an idea of what the minimum expected down payment" Did you get your solid employment history going to work every day asking, "how little can i get done today and still get promoted?" I doubt it, you went in and said, I will work harder, smarter and do it with a smile on my face, joy in my heart and everyone will want to promote me and work with me and want me on their team! I suggest you approach home ownership the same way. Give it your all, save, save, save some more! I am a fan of financially responsible homeownership. (oh by the way, i had to learn this the hard way, that's what i don't want for others!!) What does that look like. It looks like 20% down, yes it is true! OH, also this can be done in less than 24 months if you are currently earning $45K a year or more...i promise, i am living proof of this. HOW you ask...well please read many, all, most of my blogs i write. This topics is so close to my heart there is little that comes in the way of my desire to help others understand.

Here is a blog i wrote about those who think 3.5% down is enough...UGH
http://blog.house-guy.com/2011/01/buying-house-costs-more-th…

Here is a blog about how to get 20% in less than 24 months!!
http://blog.house-guy.com/2011/01/living-within-your-budget.html

Enjoy! Best of luck to you. PS, you don't need luck with you good credit and good job, you just need patience!
Web Reference: http://blog.house-guy.com
0 votes Thank Flag Link Tue Jun 14, 2011
As a side note do not use a Real Estate agent since they are basically a middle man taking money from the buyer. Your agent actually works with and for the listing agent to sell the property. Your agent only gets paid if you buy so their motivation is to get you to sign a contract. The agent is not on your side; do your own research! Say nothing to the agent when viewing a property.
0 votes Thank Flag Link Tue Jun 14, 2011
Laura is right on. To avoid mortgage insurance you would need 20% down but not many people have that these days. FHA is the route that most first time home buyers go because of the 3.5% down payment. There is another option that not many people know about. If you go to homepath.com you can find a listing of Fannie Mae owned (forclosed) properties. You can purchase one of these for 3% down and you won't have mortgage insurance. Not all lenders are approved to offer homepath loans though. I'd be more than happy to take a look at everything and see what your options are.
jsolarz@ephmc.com
Good luck!
0 votes Thank Flag Link Fri Jun 3, 2011
There are loans that do not require any down payment (VA & USDA if you are eligible), however the most popular for first-time home buyers is FHA which only requires 3.5% down. Conventional financing will require at least 5% down. If you do not have enough saved up, you can always receive a gift from a family member to cover the difference. Now is a GREAT time to buy!!

Good luck,
Mike.

mcline@waterstonemortgage.com
0 votes Thank Flag Link Mon Mar 7, 2011
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