Home Buying in Fairbanks>Question Details

Kate K, Home Buyer in Fairbanks, AK

Are down payments a requirement for a home loan when you're a first-time home owner?

Asked by Kate K, Fairbanks, AK Mon Dec 9, 2013

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Hi Kate,
Unless you are a veteran of the armed forces (VA mortgage) or purchasing in a rural area (USDA), then you are probably going to need to come up with a down payment.

FHA will let you put as little as 3.5% down AND you can even get a gift from a relative to do it. However, the extra charges for PMI have become pretty steep.

If you have good credit and can come up with 5% down on your own then conventional financing probably makes the most sense..

Speak to a local lender who can look at all the details of your situation and suggest some good solutions.

Best of luck!
0 votes Thank Flag Link Tue Dec 10, 2013
That depends on what type of Home Loan you're applying for. If you plan on using a VA Eligibility Certificate then you can buy with $0 down payment otherwise it could range from 3-10% of the sales price. When you go to a lender to get prequalified discuss your options with them. Also, depending on your income status there are some Grant Programs possibly available to you. Your lender is the expert when it comes to showing you what amount of money is required to purchase a home.

Thanks for the question and have a great day.

Bert Perkins
Associate Broker
Somers & Associates, REALTORS
0 votes Thank Flag Link Mon Dec 9, 2013
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