Home Buying in 11554>Question Details

Tara, Home Buyer in East Meadow, NY

If your looking to purchase a house for 250,000, can you only put 5-10% down or do you need to put 20%.

Asked by Tara, East Meadow, NY Wed Jan 12, 2011

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John Conklin NMLS#275915’s answer
You can absolute purchase a home with 5-10% down. You can put down as little as 3.5% for FHA and 3% conventional financing. A lot of lenders are allowing 3% down for conventional financing now. The conventional loan product guide line vary by region so be sure to check with a local Mortgage Banker. As fare as monthly mortgage insurance some MI company's have a product that allows you to pay a one time fee of 1.25% and do not require a monthly MI payment. Depending on how high your credit scores are and what your debt to income rations are will dictate which direction you should go in. Try and find a knowledgeable Mortgage Banker. Mortgage Bankers have more control over a trans action than a Mortgage Broker does and more lending options then a retail Bank. Hope that helps.
1 vote Thank Flag Link Wed Jan 12, 2011
Tara
you can go with a FHA loan fixed for 30 years and the inters rates are still low.
Web Reference: http://www.desire2own.com
0 votes Thank Flag Link Fri Jan 14, 2011
Tara
You can definitely buy a home with 5 to 10 percent down or even less as people have indicated below. But there are other parties in the transaction which may not welcome a low down payment.
Since you have asked this question it appears obvious that you have not sat down with a mortgage professional to find out your options. That is one of the first things you need to do when you start searching for a home.
If you want some help finding one and also help finding you a home please feel free to contact me.

Allen Bauman
Century21 Yve R.E.
Licensed R.E. Agent
NYS Certified Residential Appraiser
516-791-3846
allen.bauman@gmail.com
0 votes Thank Flag Link Thu Jan 13, 2011
Tara - as the previous answers have said - it is possible to go with a low downpayment and a house for $250,000. - depends on credit scores/debt ratios/location & condition of the home. Good Luck.
0 votes Thank Flag Link Wed Jan 12, 2011
Hi Tara,

The amount of cash needed to purchase a home has 2 limitations:
1. Will the homeowner accept your offer with 90% - 95% financing (mortgage) and
2. Will you qualify for a mortgage by putting 5% - 10% down on the purchase.

If you can qualify for a mortgage (and you will be required to pay PMI - Private Mortgage Insurance - which is added to the monthly mortgage amount if you put down less than 20%) AND the homeowner is willing to accept your offer with a large amount of financing, there are no requirements to putting down more cash. Home purchases can be, and are, structured with many different amounts of financing.

If you would like additional information, or would like to be put in contact with a reputable mortgage broker, please contact me.

Good luck and regards,
Arlynn

Arlynn B. Palmer, ESQ, SRES, CBR, CMS, CNS
Associate Broker, REALTOR
Coldwell Banker Claire Sobel
Direct: (516)410-3594
Email: Arlynn@Arlynnpalmer.com
Web Reference: http://www.ArlynnPalmer.com
0 votes Thank Flag Link Wed Jan 12, 2011
Dear Tara

The simple answer is yes you can put 5%-10% but this all depends on your financial situation. The FHA program allows homebuyers to put as low as 3.5% down but you need to meet with a mortgage professional to have them evaluate you specific situation and to find out if you qualify for this type of financing.

Good luck.
0 votes Thank Flag Link Wed Jan 12, 2011
You can put whatever you want down. The more you put down, the better. (anything less than 20% down you'll have to pay private mortgage insurance). If you go with an FHA loan, you can put as little as 3.5% down. Let me know if you'd like the names of a few lenders to contact.

Sally

sally.grener@coloradohomes.com
Web Reference: http://www.sallygrenier.com
0 votes Thank Flag Link Wed Jan 12, 2011
It all depends on the type of loan you get. See your banker or mortgage broker.
0 votes Thank Flag Link Wed Jan 12, 2011
Without your overall financial and credit information, etc.--do visit with any qualified loan officer(s), after reviewing your overall financials, he/she can make a determination on qualification, the type of loan, how much, etc.-- the downpayment, will be dictated by the loan product that best suits your needs--if you need recommendations, feel free to contact me directly.
0 votes Thank Flag Link Wed Jan 12, 2011
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