Home Buying in Carneys Point>Question Details

Amy, Other/Just Looking in Woodstown, NJ

is a 3.5% down payment acceptable? do we pick how much our down payment is? if they only except a 20% down payment does it have to be cash ?

Asked by Amy, Woodstown, NJ Mon Jan 11, 2010

I asked before how much is required for a down payment. now i would like to know can we get a 3.5% down payment for this house 212 Morgan Ave, Carneys Point NJ 08069

Help the community by answering this question:


Jenny - you must be a gas at parties!
2 votes Thank Flag Link Mon Jan 11, 2010
Hi Amy -

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.

Mike Lavanco
First Choice Bank
Office: 732-536-3330

Mike will be able to discuss the mortgage process with you in depth.
Good rates also! Great Guy!

John Sacktig
Broker / Manager
Orange Key Realty

1 vote Thank Flag Link Mon Jan 11, 2010
Yes, 3.5% down payment is a gov't loan. See if you are able to receive an FHA loan. 20% down you would have to pay cash.
0 votes Thank Flag Link Tue Jan 12, 2010
Amy - don't be confused by all of this - just speak with a mortgage rep...................you will be fine!
0 votes Thank Flag Link Mon Jan 11, 2010
Currently, the minimum down payment is 3% for Fannie Mae and 3.5% for FHA. For investment properties, the minimum is 20%. Down payment may be less, but the interest rate and fees will be higher.

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?
0 votes Thank Flag Link Mon Jan 11, 2010
Debbie, you never speak too soon or too late-your words are always timely :)
0 votes Thank Flag Link Mon Jan 11, 2010
speak with your lender, the amount down is a function of loan program you and the property qualify for.
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.
0 votes Thank Flag Link Mon Jan 11, 2010
Hah! I spoke too soon...............Al can help, and is a great place to start, Amy...good luck!
0 votes Thank Flag Link Mon Jan 11, 2010
Amy what you really need to do is sit down with a mortage rep and have them explain all of this to you, as I think you have some confusion. it is a lot to absorb, and your personal financial situation will play into what you can afford and how much you can borrow. There are many options for you out there, but you need to have it personalized for your needs. It's not so much what the sellers will accept, as how much you can afford and will qualify for.

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.

Best eishes....
Debbie Rose
Prudential NJ Properties
0 votes Thank Flag Link Mon Jan 11, 2010
Amy, yes you can put down 3.5%. It is very acceptable. If you offer the full price of $127,500, then your down payment would be $4,462.50.

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.

Good luck.
0 votes Thank Flag Link Mon Jan 11, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer