Financing in Chicago>Question Details

Dwilson, Home Buyer in Chicago, IL

What determines the percentage amount for a down payment on a property?

Asked by Dwilson, Chicago, IL Sat Jan 31, 2009

I am a Canadian relocating to Chicago for work and I am trying to keep my property here. That means I will not have as much cash for a down payment on a new property.

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4
Dear D,

Bill is exactly right. If you are seeking a loan to purchase a property in the U.S. and you are a Canadian citizen, then at this time you will have to put down a minimum of 25% and more likely 30% or more.

Low down payment options are not available for foreign citizens purchasing in the U.S. currently. The first two answers here are simply wrong.

Sincerely,
Christopher Thomas
Broker Associate, Sudler Sotheby's International Realty
773-418-0640 (cell)
christopher.thomas@sothebysrealty.com
http://www.mayagentchris.com
1 vote Thank Flag Link Mon Feb 2, 2009
D Wilson,

It really depends on a few things. 1st, you need to talk to a loan officer and find out where you stand as to what your credit score is.

The other issue is what price range. The price range is important because there's a cap on FHA loans. After January 1st of this year you now need 3.5% as a downpayment for FHA. A conventioanl loan can start at 5%.

If I can help in your home search feel free to contact me.

Good Luck.
1 vote Thank Flag Link Sat Jan 31, 2009
The bank. :) Depends on your credit score, what type of loan you are using, your income, the house, etc. If you go FHA you will need 3.5% minmum. Conventional can range from 5-20%+ depending on the type of home, location, and your information.
1 vote Thank Flag Link Sat Jan 31, 2009
D,

If you are financing this property expectation from US lenders is a deposit of between 30 and 35% of the sale price.

On the other hand, if you are paying cash, the deposit amount becomes negotiable with the seller. Obviously they will want to see the greatest committment on your part reflected in the deposit.
0 votes Thank Flag Link Sun Feb 1, 2009
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