Sure, 3.5% is an accetable downpayment. Some people are ding 100% financing. But it does all depend on your credit and the type of loan you are looking to take out.
You should speak with a qualified mortgage consultant.
First Choice Bank
Mike will be able to discuss the mortgage process with you in depth.
Good rates also! Great Guy!
Broker / Manager
Orange Key Realty
For single family homes, condos, townhomes...all down payments are cash. For commercial properties, down payments can be in other forms of assets such as pledged marketable securities.
You should know that the down payment is an option control "mainly" by the buyer (you)...not the lender or the seller.
Subject to your verifiable income and FICO score, you have a "higher chance" of loan approval with a "higher down payment" because it "reduces" the borrowing amount which then lowers your monthly payment.
The "sellers" just want to know if your mortgage loan is "pre-Approved." They shouldn't care how much down payment you have.
The down payment is a mechanism for the lender to control risks and to provide a "personal stake" to the borrower. This means if the borrower has his/her own money (i.e., the down payment) invested in the house then it is "less likelihood" that he/she will walk away from the house which in turn "lowers" non-repayment risks for the lender.
Due to the current financial crisis, the major banks have learned their lessons and so they've stopped approving loans with "zero" down payment.
So the question of "how much down payment?" should be asked and answered by the borrower (you)...not the lender or the seller. How much can you afford?
Seller may refuse an offer with this low down payment out of fear that the appraisal could come in low. Sometimes buyers will use an 80/10/10 mortgage to avoid pmi fees or go conventional. Again, speak with your mortgage rep and have them tell you all the options that might work for you.
Rather than explain it here, you will need to discuss your individual situation with an expert...then you will know if you need to put down more than 3.5%...........if you need the name of a mortgage rep, please let me know, although I have a sneaking suspicion that some will be coming along, and offering you their services.
Prudential NJ Properties
There are advantages to you if you put down 20% but it is not a requirement. You can put down 3.5% and if you have decent credit and income you would be able to qualify for a mortgage.
I hope this helps, but feel free to contact me if you like. You can call or email me-my information is in my profile.