Home Buying in 91765>Question Details

Peaceandpowe…, Real Estate Pro in Bell And Hurd, Paine...

What is a good cash down payment to have for a house in about 3 years if the house is about 500k to 700k?

Asked by Peaceandpowerparenting, Bell And Hurd, Painesville, OH Sat Sep 15, 2012

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That is like saying what will the prices be and what interest rate will there be in 3 years. There are so many factors that effect prices, interest rates and mortgage programs, there is no way to answer your question. Your best bet would be to talk to a Mortgage Banker or Bank to have them help you with a plan as to what your might need to do regarding your credit, since that is a big factor on what will be available to you. Remember that the 3 years is based on no other derogatory items on your credit.

Let me know if I can help

Diana Margala
Web Reference: http://www.dianam.com
0 votes Thank Flag Link Sun Sep 16, 2012
It all depends on your situation. The higher the deposit, the lower your monthly bill, the easier is to obtain financing, the more likely your offer will be accepted.
Frankly, I would encourage you to buy as soon as possible. Although the Federal Reserve recently announced an extension of low interest rates, that could change if the economy improves.
In today's market, I would encourage you to borrow as much as possible with as little a down payment as possible. Why? Two reasons. First, in my life time and in my father's life time, interest rates have never been this low. Second, inflation. Inflation is coming. How high will it get, hard to tell, but more than likely it will be higher than 3% very soon. What does that mean? Basically, in simplistic terms, it means you will have a no interest loan or you will be making money on your loan!
0 votes Thank Flag Link Sun Sep 16, 2012
You only need half percent down payment with a minimum 580 fico score to qualify for an FHA 30 yr fixed rate loan in 3%-4% rates today up to $729,750 in L.A. County. Did you just go thru a foreclosure? Just wondering why you are using 3 years in your question. You don have to wait 3 years to qualify for an FHA loan with a minimum 580 fico and 10% down with fico's between 500-579. Rates and home prices will still be acceptable in 3 years. Any further questions you need answered?

Sheryl Arndt, Broker – Loan Officer
DRE# 01440252
NMLS# 297251
0 votes Thank Flag Link Sun Sep 16, 2012
Understand that there is no SET amount right now, and there probably won't be in 3 years either.
The more you put down, the lower your Interest Rate will be, and, naturally, the lower your Monthly payment.
You will also want to have built up your SAVINGS.

You can set your own goal; say, $100,000.
0 votes Thank Flag Link Sun Sep 16, 2012
While you may be able to do a jumbo FHA @ 3.5% down, it's best to come in with 10-20% down and go with a conventional loan for a purchase such as this.

It will all depend on your situation in 3 years.

Century 21 Amber Realty
DRE #01831474
0 votes Thank Flag Link Sat Sep 15, 2012
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