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If you have good credit, how much percentage will your down payment be on a house?

Asked by Voices Member, Thu Sep 12, 2013

My wife and I have been trying to build our credit so we can afford to put a down payment on a house. We have been looking at homes for sale in the Salt Lake area and decided we can afford everything we just need to figure out how much to down payment will be.

Earl Judds
http://www.saltlakehomes4sale.com

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Answers

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The amount of money your willing to put down will affect the the overall transaction. If you are looking for a specific home than that would be based upon the home your trying to purchase. I always tell clients that your down payment will be what ever you choose it be. The better down payment the better chance of you being able to get the property. As we know the market is booming and it truly doesn't matter how good of a credit score you have whats more important is your down - payment. In my professsional opinion that the deal maker. I can refer you to our mortgage representative.

Information below:

Sandra Soehngen
Mortgage Originator NMLS ID # 1031145
Cell: (973) 809-8986
Office: (800) 332-1506 ext.605
E- fax (973) 500-6000
Email: ssoehngen@HomeCapitalNetwork.com

I hope this will be able to help you all find what your looking for and for the right price $$.

If you have any questions or concerns please feel free to contact me at anytime.

Basimah North
Cell: (862) 215 -2068
Email: Basimah.North@Prudential NewJersey.com
1 vote Thank Flag Link Fri Sep 13, 2013
Your lender has this answer. It can be between zero percent to more than 20%. It depends on the loan program you select.
1 vote Thank Flag Link Fri Sep 13, 2013
The amount you choose to put down can really depend on what type of loan you choose. For example, if you choose a conventional loan, that can be anywhere from 10%-20% depending on your finances and lender. If you choose an FHA loan that will only be 3.5% down which is relatively low. Also, if you are eligible for a VA or USDA loan than there isn't any down payment required at all. Well I hope this helps! If you have any further questions or if you need a loan, feel free to contact me. Also, if you found this helpful please leave me a recommendation if you can! Good Luck! Brian Nguyen Sr. Mortgage Banker NMLS # 659743 Phone: 949.667.2887 brian.nguyen@nafinc.com
0 votes Thank Flag Link Wed Feb 19, 2014
There are many loan programs out there with different ranges. Utah Housing Corp offers a program that, if requirements are met, can open a second mortgage to your primary FHA mortgage and make it so there is no down payment.
0 votes Thank Flag Link Tue Nov 19, 2013
Simply 20 percent... You can do it!
0 votes Thank Flag Link Thu Sep 12, 2013
The Utah Housing loan is a great option. Down payments start as low as 3% down. This loan also has the ability to take out a second mortgage that would cover the 3% down with no Mortgage Insurance.... effectively making it a 100% loan option to keep some money saved for remodeling, bills, contingency, investments, vacations, or whatever you want to do with your money. If you are able to negotiate seller paid closing costs, then this loan can become a $0 out of pocket loan.

Here is an example of the conventional 3% down with no Mortgage Insurance offered by Utah Housing vs a FHA loan with 3.5% down on a $200,000 purchase .
FHA vs Conventional Utah Housing
Down payment $7,000 (3.5%) $6000 (3%)
Closing costs $6,500 $6,450
Total Loan $193,000 $194,000
Term 30 years fixed 30 years fixed
Interest rate 4.370% 5.375%

Monthly Payments
Principal and interest $995 $1,122
Property Tax $120 $120
PMI (mortgage ins.) $216 $0
Insurance $40 $40

Total monthly payment $1,371 $1,282

Good luck starting the home buying process! I am available if you need any help finding your new home.

Daimon Bushi
Equity Real Estate Luxury GRP
Servicing Park City, Salt Lake, and the surrounding areas
Cell: 801-859-8566 or 435-200-4959
DaimonBushi@gmail.com
Web Reference: http://utahhousingcorp.org/
0 votes Thank Flag Link Thu Sep 12, 2013
If you have good credit, then the decision of how much money to put down would be determined by what home you want and what you want your monthly payment to be.

FHA loans only require 3.5% down, but they now have mortgage insurance for the life of the loan, causing you to pay more over time. Conventional loans can be obtained with as little as 5% down; however there will also be mortgage insurance until the loan-to-value ration dips below 80%.

If you want to maximize your value (pay the least amount over time for the home you want, consider putting 20% down because then you don't have an extra few hundred dollars each month going to MI.

Even if you don't have a full 20%, you can use a down payment to decrease your loan amount. So if you are looking at a $200,000 home and you have $20k to put down, you only need to borrow $180k loan amount, so your monthly payment and the amount of interest you pay over time will be less.

Alternatively, if you want to buy a more expensive home, you can use a down payment to add on to what your loan will be and get more home. So if you qualify for a $200,000 loan and you have $40,000 down payment, you've just jumped yourself into a higher bracket of homes - what you can buy for $240k vs. $200k.

The BEST thing to do is to sit down with an experienced mortgage lender who can go over ALL the options, show you actual numbers that can help you make the decision that is right for you! I work with several AMAZING lenders, I'm happy to provide their info to you, feel free to reach out to me for that or any help in finding the perfect home. :)

Wendy Starling
Starling Real Estate
801-759-1775
wendy@starlingrealestate.com
http://www.StarlingRealEstate.com
0 votes Thank Flag Link Thu Sep 12, 2013
There is a new loan program that just came out in Utah that is a Zero down and no mortgage insurance program, that I believe would be a benefit to you! I can give you more details about this loan as well as down payments and any other questions you might have! Call or text me at 801.884.7565
0 votes Thank Flag Link Thu Sep 12, 2013
There are a vast array of loan products available to buyers these days. All factors are taken into account to determine what you qualify for,

Credit, Income, debt and employment history are all major factor that will help us determine what loans are available.

There are 2 no down programs available in Utah - Including the new Utah housing 100% no mortgage insurance program.

Other than Utah Housing and USDA - conventional lending offers a 3% down loan with mortgage insurance. After that comes the FHA loan at 3.5% down but the upfront as well as the monthly mortgage insurance - FHA has increased both insurances to a point that I would never recommend that loan to client that has at least 3% down.

If you would like a full analysis of your Purchasing Power and Loan Options, please give me a call

Justin Coleman
SecurityNational Mortgage Corp
NMLS#283650
801-759-7252
justin@justin-coleman.com
0 votes Thank Flag Link Thu Sep 12, 2013
Hello Earl. Honestly, it will depend on the type of loan that you get. There are some loans out there that my clients have had that require 0% down. For "conventional" mortgages, you'll typically need 10%-20% down.

To figure out what type of loan to get, and the pros/cons of each, I'll have you speak to my mortgage guy. He knows all those specifics. Give me a call at 801-455-8753 and I'd be more than happy to point you in the right direction.

Thanks,

Dustin Brohm, REALTOR
"Salt Lake's Favorite REALTOR"
(801) 455-8753 cell
Equity Real Estate
http://www.DustinBrohm.com
Web Reference: http://www.DustinBrohm.com
0 votes Thank Flag Link Thu Sep 12, 2013
Like the others have said before, it really depends more on the loan type then your credit. Some loans will require 20% others will require 3.5%. The best way to find out is to speak with a confident mortgage lender.

There are loan options that require no money down, these are called 100% financing options, such as VA home loans or USDA loans. Utah has recently opened the Utah Housing program to anyone looking to buy. This program will cover the cost of your down payment.

There are also many different grant money options depending on the location. These can range anywhere from $2,000 up to $15,000. This is money that you would not have to pay back. It is a gift from the city.

If you would like any more information on these options please feel free to contact me on my profile, I will be happy to help.
0 votes Thank Flag Link Thu Sep 12, 2013
There are some conventionals where you can put as little as 5% down. FHA is the lowest down payment at 3.5%
0 votes Thank Flag Link Thu Sep 12, 2013
Depends more on the loan type than your credit.

FHA = 3.5%

Conventional 10-15-20%
0 votes Thank Flag Link Thu Sep 12, 2013
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