Good luck and make sure you connect with a knowledgeable realtor.
a zero down mortgage would cost you $671 per month P&I.
With 3% down your payment would be $650.
With 10% down your payment would drop to $604 and if you
put 20% down your payment would be only $537.
These payments reflect P&I only and do not include taxes, insurance or PMI if applicable.
Even though your payments would be significantly less with the larger down payment, there is only a $130 difference between the 3% and 20% down payments.
What I would consider is what other investment(s) could I purchase with my money if I only put 3%, 5% or 10% down on this house and used the rest to invest in another asset.
For example, what if you bought a second house and used it as a rental property... generating positive cash flow, annual depreciation allowances, interest deductions and built up equity during ownership. run the numbers to see what provides the best return on your investment dollars.
If you have any questons or would like more information about this idea, please email me.
The amount of money you need for down payment will depend on the loan you decide to go with. FHA requires as little and 3 percent while a conventional loan would require around 10 percent. I am a Realtor in Greenwood and would be happy to get you in touch with a Mortgage Rep I work with and help you in purchasing this home if you are not currently working with a Realtor.
First the bad new, unless owner financed most lenders require a down payment in today's financial market.
Now the good news. When you use FHA has a backer of your mortgage you may qualify with as little as 3% down. With the property you have selected you will need in the area of $4k. Down.
Now FHA does offer great rates. To get an idea you can see them at my website at http://www.amerisave.com/partner/agrego.
Please let me know if you have any additional questions.