Speak with a mortgage broker or bank prior to searching for real estate. It will help you manage expectations. This way you wont get your heart set on a property only to find out you cant afford to own it.
You really need to sit down with a Mortgage Professional to investigate what programs are out there and which ones you would qualify for. If you don't have a mortgage professional in your network, you should hire a Buyer's Agent who should have a few lender's that they trust and can refer to you. I put a sight together specifically for first time home buyers to explain the entire process and it has some tools that will help you to understand what you want before you start the hiring process. I hope it helps http://8stepstohome.webs.com/
It depends on the loan program you qualify for. For example, FHA requires a 3.5 percent down payment, i.e., $10,500 on a $300,000 home. MassHousing (http://www.masshousing.com) has programs with 0 percent, 3 percent and 5 percent down payments, but your credit score must be excellent to qualify for a 0 down loan. MassHousing also has income limitations, but you can make a lot more money than you might think and still qualify.
Many lenders will steer you to FHA; however, FHA has an upfront mortgage insurance requirement that adds thousands of dollars to your closing costs. This amount is rolled in to the loan, but it still makes buying more expensive. FHA is a good product, if you have a low credit score.
If you qualify, MassHousing is a much better deal.
Of course, if you have more than 5 percent to use as a down payment and you have a good credit score, you'll have other options.
I certainly can provide you with a referral to a lender that handles MassHousing loans (not all lenders do), if you'd like. I am also an exclusive buyer agent that has helped many first-time home buyers purchase in Chelmsford and the surrounding areas. I'd be happy to answer any other questions you might have.
I was in Chelmsford showing homes yesterday and there are 32 homes for sale in your price point. What a great time to be a buyer client. Have you selected a buyers agent? I would love the opportunity to interview for your business. Best
I would suggest obtaining a mortgage loan preapproval to determine the loan programss (and hence the amount of down payment) forw which you would qualify and could afford. I would be happy to help with that or there are many other lenders you could contact.
If you are using FHA you can put 3.5% down which in this range is about $10,500.00. There are some other costs involved with this loan, but it is a great way to get into a home. If you have not selected a buyers agent, I wanted to let you know that my partner and I offer a free 1 hr consultation and we discuss soup to nut all that involved in buying a home. I live in Maynard and grew up in Acton and am very familiar with the area. Best
NEW FED MORTGAGE - they literally specialize in all mortgage type and have a great reputation.
I costs nothing to call and get the full facts and find a mortgage that best suits you and the wisest amount to put down. It cannot hurt and they have never disappointed me. Give it a go 978-590-2442 - The branch managers name is Mike Bornstein. I get nothing out of this- its just the best place for answers in my experience.
Good luck - and if you need me for anything - I always answer the phone 978-335-9092 - J
The agents that have responded already are correct. Your downpayment amount it going to depend on which financing program you use. I notice that you are in Chelmsford MA. I know of quite a few lenders in the area that would be happy to sit down with you and discuss your options. In this market, it's very important to get pre-approved for a mortgage prior to looking at houses. That way, you know exactly what you can afford. Also, Seller's are going to want to know that you are pre-approved prior to signing and accepting an offer that you've submitted.
Let me know if I can help in any way.
Catherine Condon, Broker MA & NH