Property Q&A in Phoenix>Question Details

Karen White, Home Buyer in Phoenix, AZ

what is the down payment needed for a short sell?

Asked by Karen White, Phoenix, AZ Mon Jan 19, 2009

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The downpayment you need for a short sale depends on the lender that is financing your purchase price. If you are looking for a deal you should contact investment companies that have bargain priced homes.
0 votes Thank Flag Link Sun Apr 26, 2009
Hi Karen, First let me tell you that all of the answers below are essentially correct. Second, there are still ways to buy a home for zero out of pocket expense. Third, there are ways to have your closing costs covered at zero cost to you (these cost can be 2-3% of the purchase price or more). And Fourth there are ways to secure a lower mortgage interest rate at zero cost to you which would lower your monthly payment even further! If you'd like to know more about these creative solutions please feel free to contact me anytime.
0 votes Thank Flag Link Tue Jan 20, 2009
Hi Karen-

For much of Maricopa County, it's going to be 3.5%, via FHA loans. There are still exceptions/deals, but that's a very good place to start/set an expectation. In Queen Creek/Pinal County, it may be possible to use a USDA Loan, with a 1.5% down payment requirement.

All loans, of course, have credit score requirements, and the less you want to put down, the higher your credit score will need to be.
0 votes Thank Flag Link Mon Jan 19, 2009

The down payment is a requirement from your lender and is not based on whether it is a short sale, foreclosure, regular sale, etc. Down payments can be as low as 0% for first time home buyers on several areas of Phoenix (yes, we have done several of those lately) to as high as 20% and up for investment properties or second homes.

Good lucke!
0 votes Thank Flag Link Mon Jan 19, 2009
Hi Karen!

The down payment required to purchase ANY home, short, bank owned, or whatever, is dependent on the type of mortgage financing/loan that you are using to pay for the home. For instance, if you're going with an FHA loan, the minimum down payment required is 3.5%.

All the best!

0 votes Thank Flag Link Mon Jan 19, 2009
3.5% if you go FHA. Finding less than that will be difficult since Arizona is considered a declining market. If you go conventional, 5% will be the minimum required down payment.

If you have any questions or would like to prequalify, please let me know.
Luke Allison
Flagstar Bank

Apply Online:
0 votes Thank Flag Link Mon Jan 19, 2009

Purchase a short sale you need lender approval via a mortgage broker who will provide you requirements for downpayment. It can vary from 3.5% or more based on your credit scores, debt ratio, employment history, much more.
Web Reference:
0 votes Thank Flag Link Mon Jan 19, 2009
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