Home Buying in Auburn Hills>Question Details

Bfleming300, Home Buyer in Pontiac, MI

What is the standard amount for a down payment on a 50,000 home.? What are the cost that goes with purchasing a home closing, agent, etc?

Asked by Bfleming300, Pontiac, MI Thu Sep 15, 2011

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As has been stated, the down payment depends upon the type of mortgage for which you are approved. FHA mortgages are very common at this time. The miniumum FHA down payment is 3.5% of the sales price. While you may be able to include in any offer a request for the seller to contribute toward your closing costs ... often 3%-6% (the specific amount requested may be limited by the type of mortgage). However, there is no way you can avoid the required down payment. Rural Development mortgages require 0% down payment, however, the property being purchased must qualify under this type of mortgage. There are a limited number of areas in north Oakland County that qualify for the Rural Development. Your loan officer will be able to verify by address whether or not the property qualifies. The VA (Veteran) mortgage can also have 0% in down payment, however, you must be a qualified veteran to for this type of mortgage. If you have not already done so, you need to align yourself with a trusted loan officer.

Closing costs vary but in general include: property tax proration, buyer title insurance fees, mortgage origination fees, pre-paid home owner's insurance, etc. Once you have identified a property in which you are interested, your loan officer can prepare a "Good Faith Estimate" of your closing costs and your monthly payment. Of course, remember that closing costs may be offset by the above-mentioned seller concessions if agreed to by the seller.

Good luck in your search for a home!


Shirley Coronado
1 vote Thank Flag Link Thu Sep 15, 2011
You understand the issues now from the other replies. If you need help in finding a local Loan Officer, I can send you a list of ones that my buyer clients have used and like. Contact me.
Web Reference: http://www.MichaelJurca.com
0 votes Thank Flag Link Fri Sep 16, 2011
Closing costs can vary for the buyer in terms of actual dollars, but oftentimes in this market sellers will pay most or at least part of those costs. Some of those costs may be rolled into the actual mortgage loan. Some states and/or loan programs have closing cost or down payment assistance (qualifying requirements apply). Also, usually the cost of a buyer's agent is paid for by the seller, usually 100%--shop around and read any buyer agency contract a realtor wants you to sign to see what terms they want.
0 votes Thank Flag Link Thu Sep 15, 2011
there is no exact answer unless you know what type of loan you are getting, first is the average closing costs are 3%. different type sof loans have different requirements depending on your credit score and financials, VA and USDA have no money donw, FHA is 3.5% down, a conventional loan could be 5-10% down and if you have poor credit, 20-25% down. Your bets bet is to meet with a local and trusted loan officer who can prequailify you at no cost and give you an exact amount for your situation.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Thu Sep 15, 2011
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