Cmd, Home Buyer in Northeast Philadelphia...

what is the minimum % for down payment? can i use the stimulus as the down payment?

Asked by Cmd, Northeast Philadelphia, Philadelphia, PA Thu Mar 4, 2010

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6
Your minimum % for a down payment will completly by dependant on your bank or lending facility, and where you are purchasing.

The "Stimulus" is a home buyers "credit" Here is the IRS explaining what you can and can't do with it!
http://www.irs.gov/pub/irs-pdf/p4819.pdf

Good Luck!! And ANYTHING is possible with a little creative financing!
1 vote Thank Flag Link Thu Mar 4, 2010
There are banks still offering 100% financing. You need to check with your local lenders to find out what each provide. We recommend that you shop around different lenders. Otherwise the lowest down payment is an FHA loan for 3.5%.
0 votes Thank Flag Link Thu Aug 23, 2012
All the answers are correct. For a short time PHFA will give you an interest free loan up to $5000 for the stimulus refund. But time is running out.

Cinnamon Boffa
ReMax Realty Services
1955 Street Rd
Bensalem, PA 19020
215-245-2121
zcinn@verizon.net
0 votes Thank Flag Link Sun Mar 7, 2010
All answers so far are correct. For some finer details, the minimum down payment for different types of loans (i.e. Conventional, FHA, etc.) and residential type (Primary, Investment, etc.) are all listed below:

1. Conventional (Fannie Mae / Freddie Mac, Privately Insured Loan)
- Primary Residence = 5% down (or 95% LTV) is typically the minimum. It will also depend on your credit score, debt-to-income ratio, and what state/county you're buying in.
- Investment Property = 20% down (or 80% LTV) is typically the minimum. It will also depend on your credit score, debt-to-income ratio, and what state/county you're buying in.

2. FHA (Federal Housing Administration, Government Insured Loan)
- Primary Residence = 3.5% down (or 96.5% LTV) is typically the minimum. No investment properties are allowed with FHA financing.

3. VA (Veteran's Administration, Government Insured Loan)
- Primary Residence = 0% down (or 100% LTV) is typically the minimum. This will depend on your military qualifications. No investment properties are allowed with VA financing.

I hope all of this information helps you out. Please let me know if you need any more assistance.
0 votes Thank Flag Link Thu Mar 4, 2010
3.5% is the minimum downpayment based on credit scores. They can require higher down payments if the credit scores are less then great. The stimulus can not be used this year for a down payment. Last year they did, this year the banks are not participating in that program. You can ask for a seller concession if you need help with closing costs, you can get back up to 3% of the sales price of the home that way.
Web Reference: http://www.sjrates.com
0 votes Thank Flag Link Thu Mar 4, 2010
For FHA loans, the minimum down payment is 3.5%. You can have the seller pay your closing costs. I'm not sure what you mean by using the stimulus for down payment, but if you are talking about the tax credit please see my blog for an explanation of how it works.

http://www.trulia.com/blog/phillip_baird/2010/03/first_time_…

hope this helps.
0 votes Thank Flag Link Thu Mar 4, 2010
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