Home Buying in 30339>Question Details

Casey Morris, Renter in Atlanta, GA

Is it necessary to have 20% to put down on a house? It seems it will take us forever to save this much, and we've got to get out of this

Asked by Casey Morris, Atlanta, GA Tue Jan 18, 2011

apartment! We don't want to buy a starter home either, we want to buy a house that we will stay in for a long, long time. Because of this, we are looking at homes that are likely more expensive to the average first-time buyer. Our credit is good, and we are looking at homes in the $300,000 range.

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Answers

53
Jason Baez’s answer
Contact a good mortgage loan officer. If you have good credit, I think that you should be able to find a mortgage with less than 20% downpayment. There are a lot of products out there to consider, but normally one makes more sense than the others for each person.
2 votes Thank Flag Link Wed Jan 19, 2011
BEST ANSWER
Casey,

Based on the $300,00 price range you are talking about you may go FHA in certain counties otherwise you could be required to put 5% on a conventional loan (Fannie Mae or Freddie Mac). These usually require a 660 credit score and if you are above 700 it is easier and you may command a better interest rate. All lenders are not the same and not as competitive on rates. Keep that in mind.
I can refer several to shop around for the best for you.

There are many good priced foreclosures and bank owned properties (REO's) in good condition. that is a good starting place. Even if you put just 5% down you can pay extra each month and accelerate the build up of equity to reduce you payment by dropping the mortgage insurance at an earlier date. I'd be happy to discuss the options for you to review before you made the best loan choice for your family.

Touch base with me for a no-hassle friendly conversation. I work by invitation.

Ken Guillen, Associate Broker, Certified REO specialist, short Sale specialist
Caseu and Associates Realty Company
klguillen@comcast.net
0 votes Thank Flag Link Tue Jan 18, 2011
Casey, Every County in the USA has different top dollar limits for an FHA Loan. Check with a local lender and find out what the spending limit is in your County. For example in the two counties I service in NE Arizona, one has a top dollar limit of $308,000 while the other has a top dollar limit of $283,000. In the Phoenix & Tucson areas those limits are much higher. You need to determine the top dollar amount that FHA would allow and whether you qualify for that amount. You should also inquire about USDA Loans and whether they are available in your area. There are options outside the traditional conventional loan that requires 20% down. Find a good lender and talk to them.
1 vote Thank Flag Link Sat Jan 22, 2011
The best place to start is to select a reputable loan officer who will take all your financial information and will then so you the best loan programs that fit your budget with the amount of money for down payment and for closing costs that you have. Depending in the market area that you are in, a well-trained Realtor will find you a home that fit your needs and request that the seller pay some of your costs enabling you to keep some of that money to do the improvements in the home that you may want to do. There are many loan programs with FHA, CALHFA, etc., that requires minimal down payments. Be sure to select a mortgage company that is well versed in these programs.
Web Reference: http://www.jolasley.com
1 vote Thank Flag Link Thu Jan 20, 2011
Hi Casey,

Well, I'm late with my response, but wanted to chime in anyway. You know those programs that everyone has been talking about? My blog at the link below covers many of them. For a limited time, home buyers may qualify for down payment assistance of up to $7500 to purchase a home priced up to $300K. This is an interest and monthly payment-free second mortgage that isn't repaid until the home is sold, refinanced or is no longer used as the borrower's primary residence. You'll also find information on the HUD- $100 down program there too. So, no, it isn't necessary to put down 20% if you meet this criteria.

Would love to speak with you in detail about the right program for you. When time permits, will you please call me at (678) 775-2677?

Thanks
Solomon Greene
REALTOR® / HUD-certified Affordable Housing Counselor - Keller Williams Realty Atlanta Partners
http://www.AtlantaDownPaymentAssistance.com
1 vote Thank Flag Link Wed Jan 19, 2011
Hi Casey,

You have many different options available to you. FHA Loans start as low as 3.5% downpayment. Conventional Loans can be as low as 5.0% . However, both these type of loans will have mortgage Insurance.

This is a Buyer's market. There are very good values in the home market and you wil be able to purchase a very good home in your price range. The closing costs and pre-paids for this home will be approximately $10,000 to $12,000. Of course, a Mortgage lender willl be able to give you a more accurate number. I work with ecellent Mortgage Lenders that I can recommend to you.

You can contact me throught my profile on Trulia. I provide a complete "Home Buyer's Guide" that will help you understand the home buying process .

I look forward to answering any of your questions.

Thanks ,

Rick Payne
Keller Williams Realty
1 vote Thank Flag Link Tue Jan 18, 2011
It is not necessary as others have already mentioned. Furthermore, we have agents in the area that share the commission with the buyer, which allows the buyer to keep even more of their money in their pocket.

Hope that info helps!
1 vote Thank Flag Link Tue Jan 18, 2011
Casey,

You only need 3.5% down if you do an FHA loan and 5% if you do a conventional loan. The reason why buyers like to put 20% down is to avoid paying mortgage insurance. But I can certainly understand the desire to buy your own home. I work with a lot of first-time homebuyers and I should write a book about all the horror stories they tell me about their apartments.

If you'd like to speak with a lender, I have some great recommendations for you.

And if you're looking to buy in the Smyrna Vinings area, there are some great opportunities available. If you'd like a deal, give me a call.

Aaron Hofmann
Your Smyrna Vinings Specialist
aaron@SmyrnaVinings.com
1 vote Thank Flag Link Tue Jan 18, 2011
You do not have to put 20% down to buy a home. There are programs like FHA that allow you to put as little as 31/2 % down. Check with your realtor who can suggest a lender that will review your financial background and offer you a few alternativesw to consider. Stay excited to buy.
0 votes Thank Flag Link Sun Jan 30, 2011
Putting 20% down will help you avoid paying private mortgage insurance (PMI) ... but 20% is not a requirement for buying a home.

Look into the FHA loan. You can put down 3.5% and now you can have that entire amount gifted to you. FHA accounts for about 25% of the loans being used in today's market, so have your mortgage loan officer explain more details.

All the Best!
Tina Ciaccio
Web Reference: http://www.tinaciaccio.com
0 votes Thank Flag Link Sun Jan 30, 2011
Like I (and many others have stated - there is a way to buy without 20% down!
0 votes Thank Flag Link Wed Jan 26, 2011
You can get FHA loans with 3.5% down and I just had a buyer who had a Wells Fargo 'in house product" with 2% down although with the origination fees he paid it was probably almost the same as 3.5% FHA with no points.
0 votes Thank Flag Link Wed Jan 26, 2011
Well - the feedback is unanimous - you can buy a home for as little as $100 down and if you qualifiy, there are multiple programs that provide downpayment and CC assistance up to $20K +.

But caution is in order - many of these programs require strict underwriting requirements like debt to income ratio, and most limit the areas in which you can buy a home, and some programs are so complex that you only wan't lenders who are experienced with that program. Just like when hiring an agent, you want a lender who is experienced and can offer some critical extra expertise. Now is not the time to work with a generalist or on the job trainee. You also want to use direct lenders rather than mortgage brokers - I can help you with referrals based on the programs you qualify for.

I will also point out, that taking advantage of some of these programs to buy a home now can be wiser than waiting to save up 3.5% if you don't have to - if rates spike up even .5 to 1% over the next few months, a house will cost you thousands more over time.

Don't hesitate to contact me anytime you have a question or need sound advice.

Regards,

Robert Whitfield
Broker/Owner - Realtor
Professional Buyers Broker
Relocation Expert
New Home Construction Expert
ICC Code Certified Building Inspection Expert
Advantage Realtors
678-585-9691
877-787-7167
"I Go The Extra Mile For Every Client - For No Extra Fees!"
0 votes Thank Flag Link Wed Jan 26, 2011
You can purchase using a FHA loan which currently requires 3.5% down. On $300,000 the 3.5% down payment would be $10,500.
0 votes Thank Flag Link Wed Jan 26, 2011
Agreed, great answers. I posted a blog post below that I wrote about tips to increase your credit score if indeed you do need some help in that arena. Good luck!

http://www.NicoleSellsRE.com
0 votes Thank Flag Link Wed Jan 26, 2011
Everyone has provided excellent answers! Nothing to add other than some lenders may requre more down if you have a low credit score. Find a good Buyer's Agent to help yopu navigate thru the home buying process. The knowledge and experience they have, will save you a lot of headaches later.

Call me if you're looking in Hamilton Mill, Flowery Branch or Braselton areas. I'd be glad to help you find your forever home.

Wanda Couch Keller Williams Realty Atlanta Partners
678-614-5883
0 votes Thank Flag Link Tue Jan 25, 2011
Casey,

You can get an fha loan for 3.5%. If your credit score qualifies conventional is probably what you are talking about. I suggest calling a few loan officers. finding the one you like and best rate.


good luck,

vera
0 votes Thank Flag Link Tue Jan 25, 2011
Casey,

You can get an fha loan for 3.5%. If your credit score qualifies conventional is probably what you are talking about. I suggest calling a few loan officers. finding the one you like and best rate.


good luck,

vera
0 votes Thank Flag Link Tue Jan 25, 2011
You do not need 20% down. Talk to your realtor, get a few mortgage/loan officer referals, and go from there.


Scott Hutchinson
Edina Realty
scotthutchinson@edinarealty.com
http://www.scotthutchinson.edinarealty.com (Seartch all Minnesota Properties /Bank Owned Search)
C: 612 396-0692
F: 952 892-7163
0 votes Thank Flag Link Tue Jan 25, 2011
It is not always necessary to put 20% down. Don't become discouraged, just become interested to shop around in talking to lenders. Talk to your friends, neighbors, work associates and find out where they went for financing. It is more difficult today to get a loan but if your finances are in order, you have some hope. FHA, as has been pointed out by some others is an excellent option. My only suggestion is to find a price range that still allows you to buy the clothes you all want ,take the vacations you need, and keep money for enjoyable dinners. Those things,along with the house, create the lifestyle you are striving for. Good luck!
0 votes Thank Flag Link Mon Jan 24, 2011
Casey:
I congratulate your high desires and level of motivation to move out of your apartment and into a home. However, I caution you. 20% or 3.5% down, or anything in between has nothing to do with home ownership. Home ownership and what you can afford has more to do with your income than anything else. If your household makes $49,981/year which is the median income in Atlanta, recorded in 2009, then the amount of home you could afford is $175,000...How did i get to this? The Math is, simple (if you know it). Here it is: Yearly Income / 12 = Monthly Income . Take Monthly Income *30% = Affordable Mortgage Payment. $49,981/12= $4651. Now, $4165*.3 = $1249. A Mortgage at $175,000 at 5% interest rate, with taxes of 1.25% and PMI of .5% = $1251. Found at http://www.mortgagecalculator.org/
More important than being able to afford your home payment is being able to live there stress free. You see, if you could change your lifestyle habits in a way that would allow you to save 20% down for your home, you could be 90% assured you would be able to live in your home stress free. You see as a renter, you don’t have to fix the water heater that breaks the same month your best friend’s wedding is and your paycheck was spent on their present, now it has to be spent on a water heater. My point is, when owning a home, the unexpected happens at the worst times, and you don’t have a choice to fix or not fix, and you don’t want to fix them on credit because that is digging a big hole. The fact that you say it is “impossible” to save the 20% tells me you need to first work on a budget, and living within your means. If saving for something that is important as a roof over your head is impossible, then what is possible? Trust me, I have been there, I have also been the guy who makes a huge paycheck for 18 months thinking the world was rosy to find out I was living a “false dream.” Lord willing, I was broke, and was able to learn that saving 20% while difficult is possible, and now saving 10% or more a year of my income is a standard. Lord willing, with three children, and a wonderful wife I have been able to save more money in 12 months than I was the past ten years of my life..my point, with the correct knowledge you too can make the impossible, possible. If you need a good place to start on a budget, look for Dave Ramsey’s Financial Peace University, there are local groups that meet all over America and learn financial wisdom together. Or most churches offer, Crown Financial Bible study. Crown is the foundation Dave uses, either class is awesome, I have gone through Crown as a student and as a leader. Just like watching your weight which we do every day/week, your finances are no different, you have to follow a pattern that allows for a healthy financial situation. Best of luck to you. DO NOT OVERSPEND, I DID that and it ended up in financial disaster….
Ps. If you have found this to be a helpful and resourceful answer please mark it as best answer. Thank you.
0 votes Thank Flag Link Sun Jan 23, 2011
It is not necessary to have 20% down . FHA only requires a 3.5% down payment.
0 votes Thank Flag Link Sat Jan 22, 2011
Absolutely not. If you wait that long, the prices and the interest rates will be out of reach. You can get in with only 3 1/2% down through FHA, zero down with a VA loan if you are a veteran. And you can still get a gift from a direct blood relative, i.e. parent or sibling, but no aunts, uncles cousins, etc. Check with your lender for further details. If you don't have one, get one; preferably one with at least 5 years experience if not 10. They have seen a lot more of this mess and can give you a lot more options than a rookie. No offense to rookies. I know they have to start somewhere. I practiced lending for 7 years myself and know what it's like trying to earn credibility. However, it's been nearly 20 years since I was a loan officer and I wouldn't dare try to give anyone any specific advice. Best of luck and don't blow this opportunity of a lifetime trying to save for a 20% down payment if you have decent credit. Go For It!
0 votes Thank Flag Link Thu Jan 20, 2011
You might want to talk to a loan specialist at your local bank. They have all the programs available to home buyers. 1 option is the FHA loan, which would let you get in to a home for as little as 3.5% down (again, check with your lender to see if this and other programs are still available).
0 votes Thank Flag Link Thu Jan 20, 2011
Talk with a couple of lenders and you may find some good solutions!
0 votes Thank Flag Link Wed Jan 19, 2011
Great choice Casey, I live in East Cobb myself and my family loves it!

Let me know if I can ever help you, and feel free to set up an automated home search on my website below if you like.

Robert Whitfield
0 votes Thank Flag Link Wed Jan 19, 2011
Thank you everyone for your answers! You were all really helpful! We have just started to save, and we don't even have the 3.5% yet, but it is good to know that our credit scores should be good enough for the loans you mentioned. I was wanting to get an idea of how much we needed so I can start researching lenders and agents and look to purchase in the next year or two. When we are ready, I would love to reach out to some of you. My husband tells me now that we are actually looking at homes between $200,000 and $300,000 for now, and we will be looking to purchase in East Cobb.

Thanks again for your help.
0 votes Thank Flag Link Wed Jan 19, 2011
Hi Casey,

Hopefully, I answered your question on my prior email yesterday. I mentioned that closing costs and prepaids could be approximately $10,000 to $12,000. What I didn't mentioned is that I always work towards getting my buyers 90% to 100% of these costs paid by the seller. Whether that seller is an individual homeowner or the property is owned by the bank.

My goal is to have my buyers pay the downpayment ie., 3.5%, 5.0% etc., the home inspection approximately $250.00 to $350.00 and the appraisal fee approximately $300.00 to $400.00. I also try and get the selling costs to cover the appraisal fee and the inspection , if at all possible.

Thanks,

Rick Payne
Keller Williams Realty
0 votes Thank Flag Link Wed Jan 19, 2011
Casey,

There are various leanding programs that meet a variety of consumer needs. We recommend meeting with several different lenders to find out more about your specific personal options.

Good luck,

Bill
0 votes Thank Flag Link Wed Jan 19, 2011
If you have good credit, chances are you'll be able to qualify for a mortgage with a lot less down than 20%. The first step in the home buying process is to talk to a reputable mortgage lender who will assess your goals and help you determine the price range and downpayment that is comfortable and safe for you. Then, start looking at homes in the neighborhoods that appeal to you. Please contact me so that I can refer lenders to you that will help you through the pre-qualification process. By getting pre-qualified, you will not spend time or energy looking for homes in the price range that is not right for you. If you get pre-approved for a loan in advance, when you make an offer on a home, you'll have a lot more strength to negotiate! Contact me at jackson@jacksonbasshomes.com for more info.
Web Reference: http://jacksonbasshomes.com
0 votes Thank Flag Link Wed Jan 19, 2011
As long as your credit score is 640 you can go FHA for a minimum of 3.5% down payment. IF you find a homepath home is is only 3% down. The company I work is Southeast Mortgage and we can have you cleared to close in 8 days! You can reach me when you are ready at 770-279-0222 ext 718 OR on my cell at 404-579-9802. Have a great day!
0 votes Thank Flag Link Wed Jan 19, 2011
Hi Casey,

Hank makes a good point about being aware of the costs of homeownership, however other than taxes, it is size and condition rather than price that can increase your costs the most. In other words a $198K home is not necessarily that much cheaper to own than a $300K home.

It all depends on your income bracket - I have sold $600 and & $800K homes to first time buyers - so I am not going to suggest you start out lower especially since you say you want to stay in the home a long while. In this market you want to get into the home you will be happy with and intend on staying in for a while. I would not recommend the risks associated with buying cheaper with the thought of moving up in a few years - we dont know where prices will be or will loan rates will be. We do know it is not easy to sell - and that could remain the case for several more years.

I would be happy to discuss all this with you and give you some real life examples of what you might expect in the area of ownership costs, and many other important things to consider.

Hank is also right - you want to do thoughtful research especially when choosing an agent - I invite you to compare any Atlanta area agent/realtor/agent teams services with my Wise Buyer Program. If I represent you, I can assure any home you buy will be structurally sound and in good physical shape, both critical factors impacting your ownership costs and even long term appreciation performance.

I referred a great lender to you in my post below - about ten posts down.

Robert Whitfield
0 votes Thank Flag Link Wed Jan 19, 2011
Casey,
Now that you have all of this good and accurate advice on the types of loans and some good lenders to talk to, call me and let's go look at some homes. I live and work every week as a full time buyers agent in the 30339 zip code and adjacent areas. I would love the chance to interview to be YOUR agent. You can learn more about the entire buying process and me at http://www.duffyrealtyofatlanta.com.
Caroline Gamma-Duffy Realty 404-668-9167
0 votes Thank Flag Link Wed Jan 19, 2011
Get with a few solid lenders and see what they offer. It might also be good to be a bit more flexible on price. As you noted, a 300K first time house is a bit unsual, might be better to cut your teeth lower. You are also in a highly turbulent market and not having the experience of owning, maintaining and running a 300K home may be more than expected.

It goes without saying - you better really do your homework when aligning with a lender and agent. Missing the mark in the 300 range is much worse than missing the mark in the lower price points. There's much more to ownership than most people realize and it varies with price range.

Hank
Web Reference: http://www.hrmiller.com
0 votes Thank Flag Link Wed Jan 19, 2011
Casey if you have good credit and income you have been misinformed. The minimum down payment for FHA is 3.5%.
What county are you looking to purchase in?
Give me a call or email me so I can prepare some estimates for you.

Kevin Ramirez
Mortgage Consultant
SunTrust Mortgage
Direct line: 770-277-2341
Fax: 404-739-3213
http://www.suntrustmortgage.com/kramirez
0 votes Thank Flag Link Wed Jan 19, 2011
whoever told you that you must put down 20%? many good answers below. You can buy a home with as little as $100 but most likely only 3.5% on an FHA loan. Call a lender that is reputable and knowledgeable who can guide you. Try my friends at Southeast Mortgage:

David Neimark, Sr. VP Southeast Mortgage
770-279-0222
0 votes Thank Flag Link Tue Jan 18, 2011
As the saying goes "If you want to play you have you pay". I'm sure you probably can find a home with a cheaper down payment you just have to shop around. If I can be of help feel free to call Howard at (917) 681-6788.
0 votes Thank Flag Link Tue Jan 18, 2011
Casey,

I don't think anyone mentioned that the Homepath Financing through Fannie Mae is flexible with the origination of your down payment.... this is from their website:

•Low down payment and flexible mortgage terms
•Down payment (at least 3 percent) can be funded by your own savings; a gift; a grant; or a secured loan from a nonprofit organization, state or local government, or employer
•No appraisal required
•No mortgage insurance*
•Available for primary residences, second homes, and investment properties

If you need any help, don't hesitate to call, text or e-mail me.

Tony Teixeira
tony@muffleyhomes.com
770-851-5050
Web Reference: http://muffleyhomes.com
0 votes Thank Flag Link Tue Jan 18, 2011
I agree with Jill, there is many available programs
0 votes Thank Flag Link Tue Jan 18, 2011
Casey, There are several loan programs available for purchasing a home with little or no down payment depending on where you are looking to purchase a new home. USDA allows 100% financing in counties outside the metro area. Conventional programs like Fannie Mae Homepath require a minimum of 3% down. FHA requires 3.5% down, and is a great program for first time homebuyers. Also, check with the Georgia Dream program through the department of Community Affairs. They still offer certain down payment assitance programs.
Jill Richardson
Waterside Mortgage
404-641-1111
0 votes Thank Flag Link Tue Jan 18, 2011
I am sorry but I would avoid out of state firms that swoop in with their commission sharing schemes. I can tell you Casey, you get what you pay for - never use an agent who shares (or promises to share their commission with you) - even if they are from Atlanta. If they are that weak and desperate that is probabaly all they are worth to start with, but more importantly, that type agent can cost you way more than they pay you to be their client.

In this market, you want the best Buyers Broker you can find, not the weakest.

Sincerely,

Robert Whitfield
Broker/Owner - Realtor
Professional Buyers Broker
Relocation Expert
New Home Construction Expert
ICC Code Certified Building Inspection Expert
Advantage Realtors
678-585-9691
877-787-7167
"We Go The Extra Mile - For No Extra Fee!"
0 votes Thank Flag Link Tue Jan 18, 2011
Hi Casey,

You are very fortunate that you are in an apartment - many sellers would like to take advantage of the deals to be found in this buyers market but need toi sell first - and that is not easy in a buyer market!

You now know that 3.5% down is all you need and an FHA loan is the way to go. For competant and experienced advice, I suggest you call one of the best lenders in town - Jason Young, Branch Manager at American Bank Mortgage Group at 678-608-2944. They have in house underwriters and can get a loan done and closed faster than almost any lender I have referred a client to in over 10 years. I suggest you stay away from mortgage Brokers in 99% of cases - they have no control of the third party underwriters they use.

There are a variety of special programs you may quailfy for as well depending on where you want to move to etc.

Drop me a line in the morning at 678-585-9691 and I would be happy to give you some helpful strategies and advice on the best way to move forward based on your circumstances.

If you can get a loan, I would be happy to assist amd represent you - see the site below for information on the many benefits of my unique Wise Buyer Program.

Regards,

Robert Whitfield
Broker/Owner - Realtor
Professional Buyers Broker
Relocation Expert
New Home Construction Expert
ICC Code Certified Building Inspection Expert
Advantage Realtors
678-585-9691
877-787-7167
"We Go The Extra Mile - For No Extra Fee!"
0 votes Thank Flag Link Tue Jan 18, 2011
You can put 3% down on Home Path homes. Do searches for your price range for fannie mae foreclosures offering Home Path financing. Keep in mind not all lenders can do Home Path.

If you need some help with this call or just shoot me a email. If you have a realtor you should ask them.

John J. Reinhardt
REALTOR
Solid Source Realty

T 770.475.1130 Ext. 6806
0 votes Thank Flag Link Tue Jan 18, 2011
Hi Casey,

An FHA loan only needs a 3.5% down payment. It's not necessary to put down 20%. I would be happy to help you with your home search, and guide you through the process with every step. Buyers really need to do their homework in this market, there are so many things to consider, and a lot of distressed property to choose from. As a Realtor, my commissions are paid by the seller, so you don't have to pay me for representation. I look forward to hearing from you.

Karen Phillip
Exit Realty Champions
404-422-5026
karen@karenphillip.com
Web Reference: http://www.karenphillip.com
0 votes Thank Flag Link Tue Jan 18, 2011
You can get a loan with as little as 3.5% down. You must be talking to some uninformed people. Some investors need 20% but not if you are going to occupy the home yourself. Call me in the morning and let’s discuss details.

Mark Lackey
Atlanta Housing Source at
Solid Source Realty, Inc.
Associate Broker
EcoBroker
Mark@AtlantaHousingSource.com
404-886-8789

Services
Home Buyers & Sellers - http://www.AtlantaHousingSource.com
Property Management – http://www.RentalHomeAtlanta.com
0 votes Thank Flag Link Tue Jan 18, 2011
Casey,
It's not necessary to put 20% down at all. If it was, there wouldn't be many $300,000 homes being sold today because not a lot of people have $60k lying around doing nothing these days ! As others have mentioned you may be able to put as little as 3.5% down...there are other programs for 5% or 10% down and depending on your situation those may work better for you than the FHA 3.5% loan. Get out of that apartment, Casey. Interest rates are low and real estate is on sale. I'd love to help you out. But any way you go, good luck finding a great home !
0 votes Thank Flag Link Tue Jan 18, 2011
Casey,

You can get into a home for as little as 3.5% down and depending on how you work you're offer you can get the Seller to contribute to cover your remaining closing costs. I'd be glad to refer you to a few lenders that you can shop and give you more options, just give me a call 404-507-2267
0 votes Thank Flag Link Tue Jan 18, 2011
Casey, I heard that question from another home buyer today. Like everyone has already said, you can do 3.5% down on a FHA loan, up to $417,000 here in metro Atlanta. (The FHA limit is different in different parts of the country.) Michael is also right about the $100 down (instead of 3.5%) on a HUD foreclosure.
Feel free to contact me with any questions you may have.

Jen Bowman, Broker Associate
Keller Williams Realty Atlanta Partners
404-456-5024
Web Reference: http://www.JenBowman.com
0 votes Thank Flag Link Tue Jan 18, 2011
Hi Casey: No, it is not necessary for 20% down. There are grant funds available right now for first time home buyers to use toward their down payment. I am local and would be happy to assist you further upon request.
0 votes Thank Flag Link Tue Jan 18, 2011
All of these answers are correct. 20% down is required on a conventional loan, but FHA loans only require 3.5%. If you need the names of some local Atlanta lenders, please let me know and I'll send you a few. If you need a Realtor, I'd love to help you.

~Carol
0 votes Thank Flag Link Tue Jan 18, 2011
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