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All Locations : Nationwide Real Estate Advice

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A few minutes ago
Densilucy answered:
The most common mortgage types for residential properties are an FHA loan and a Conventional loan.

Depending on the loan program, the required minimum down payment amount varies. For FHA loans it is 3.5% but keep in mind that with less than 20% down you'd have to pay "mortgage insurance".

The Fannie Mae conventional 97 loan program allows for home financing with just 3%. However, it may be difficult to secure the mandatory mortgage insurance if you have a low credit score.

USDA has ZERO down payment loan programs. To be eligibile, the property location must be in a designated rural zone.

Find out more about the low down payment mortgage programs.
... more
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A few minutes ago
Densilucy answered:
Typically the down payment is not due until closing, although it all depends on how your contract is written. On new construction homes, Some builders may request increased deposits throughout the building process and/or option deposits if you select certain upgrades.

The closing costs are generally not due until the closing, except maybe for the appraisal and home inspection fees.
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A few minutes ago
Densilucy answered:
Finding a Lease to Purchase home can be very difficult if you are not looking to put any amount as security deposit or down payment.

The first step is to tackle your low credit score. Bad credit or no credit can be fixed over time, provided you are committed to doing so.

Here are some of the most common features of lease to purchase terms:

1. The amount of Down payment expected by the owners can be substantial. Most owners generally ask for 10% to 20% of the purchase price. This amount is non-refundable.

2. The amount charged as monthly rent is much above the fair market rent for the area, with the only the excess amount going towards the house purchase. Even this is also not refundable.

3. If not qualified for financing at the agreed upon time and price, then you lose all money you've put into the property so far.

4. The sale price is usually agreed upon at the beginning of the rent to own contract, and the housing prices may still decline before you finally take ownership.

5. The owner must also properly pay their mortgage, if they own. If they fail to pay or default, you lose.
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A few minutes ago
Densilucy answered:
The amount of down payment you need inorder to purchase a house is one of the most frequently asked questions. The correct answer is - it depends.

Depending on the the type of mortgage loan program, the required minimum down payment amount changes significantly. For FHA-insured home loans it is 3.5% and for conventional, conforming loans it can be 10% or 20%. It really depends on the type of loan.

You'd be required to put a minimum of 3.5% down for the FHA loan - but keep in mind that with less than 20% down you'd have to pay "mortgage insurance". In case of Fannie Mae loans, you'll have to opt for private mortgage insurance or for a second mortgage.

USDA has ZERO down payment loan programs. To be eligibile, the property location must be in a designated rural zone. For eligible veterans, VA loans can allow for very low down payment.

Find out more about the minimum down payment requirements for various loans at http://downpaymentguide.org
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A few minutes ago
Densilucy answered:
The Georgia Dream Homeownership Program provides first mortgage loans, down payment assistance and home buyer education to eligible home buyers. An eligible borrower must not have owned a home in the past three years, or must be purchasing a home in a targeted area. The borrower must meet income and purchase price limits, have limited assets, and must invest at least $1,000 into the purchase transaction.

Find out more the dream program and other GA down payment assistance programs at http://downpaymentguide.org
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0 votes 12 answers Share Flag
A few minutes ago
Densilucy answered:
Closing costs are settlement fees and charges associated with the cost of obtaining a residential mortgage loan. These fees include a wide range of items such as the cos tof the appraisl, lender origination fees, escrow handling charges, wire transfer fees, discount points, document preparation fee, lender’s title insurance and prepaid taxes and hazard insurance premiums.

The down payment is the amount that is applied directly toward lowering the loan amount. This is normally based on a percentage of the total sales price. The down payment amount is established by the lending guidelines of the home loan program the lender has chosen for your loan.

For in depth information related to this, visit: http://downpaymentguide.org
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0 votes 5 answers Share Flag
A few minutes ago
Densilucy answered:
Finding a Rent to own home can be very difficult if you are not looking to put any amount as security deposit or down payment.

The first step is to tackle your low credit score. Bad credit or no credit can be fixed over time, provided you are committed to doing so.

Here are some of the most common features of rent to own homes:

1. The amount of Down payment expected by the owners can be substantial. Most owners generally ask for 10% to 20% of the purchase price. This amount is non-refundable.

2. The amount charged as monthly rent is much above the fair market rent for the area, with the only the excess amount going towards the house purchase. Even this is also not refundable.

3. If not qualified for financing at the agreed upon time and price, then you lose all money you've put into the property so far.

4. The sale price is usually agreed upon at the beginning of the rent to own contract, and the housing prices may still decline before you finally take ownership.

5. The owner must also properly pay their mortgage, if they own. If they fail to pay or default, you lose.
... more
0 votes 10 answers Share Flag
A few minutes ago
Densilucy answered:
When buying a HUD home, qualification guidelines vary depending on the type of mortgage program you choose. If you opt for a FHA loan, you can secure financing with down payment as low as 3.5%.

If the HUD home is in need of renovation work, the FHA 203K rehab loan can be a great choice. It provides the necessary financing needed to purchase and renovate. The down payment for this program is also 3.5%.

Find out more about the qualification requirements for purchasing a HUD home: http://downpaymentguide.org
... more
0 votes 18 answers Share Flag
A few minutes ago
Densilucy answered:
Owner financing simply means that the person who owns the property is willing to sell and agrees to take payment over time for the purchase price of that real estate. This is generally used when you have a willing owner and the borrower is unable to secure a mortgage from other sources.

Learn more about the seller financing process here: http://downpaymentguide.org
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0 votes 7 answers Share Flag
A few hours ago
Densilucy answered:
If you are looking to purchase a new home, you can take advantage of a number ofNew Jersey first-time buyer assistance programs, which can help cover some costs associated with the buying and home ownership process.

Find out more about NJ down payment grants here: http://downpaymentguide.org
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0 votes 12 answers Share Flag
A few hours ago
Densilucy answered:
IRA has clear guidelines regarding withdrawing IRA or 401k money for a home down payment. There is a limit to the amount you can use to buy a home. You will have to pay income tax on it and a 10% penalty. It must be your first home. Your plan may have additional restrictions.

Check out the latest guidelines regarding using a 401K loan here: http://downpaymentguide.org
... more
0 votes 103 answers Share Flag
A few hours ago
Densilucy answered:
Even if you get a no closing cost loan, you'll probably still have to come up with some money before you close your loan.

Closing costs do not include down payment, real estate taxes, insurance fees, and several other expenses. ... more
0 votes 5 answers Share Flag
A few hours ago
Densilucy answered:
If you are looking to purchase a new home, you can take advantage of a number of Pennsylvania first-time buyer assistance programs, which can help cover some costs associated with the buying and home ownership process.

Find out more about PA down payment grants here: http://downpaymentguide.org
... more
0 votes 9 answers Share Flag
A few hours ago
Densilucy answered:
An Earnest Money Deposit (EMD) on residential home purchases is simply held by a third-party escrow company based on the terms outlined between you and the seller in the home purchase contract. The amount you deposit will be credited towards the downpayment and/or closing costs when you close on the motgage. Understand more about the escrow process and mortgage settlement. ... more
0 votes 10 answers Share Flag
A few hours ago
Densilucy answered:
The first time home buyer down payment assistance can help you realize your dream of homeownership faster. A number of federal, state and local agencies and organizations offer a number of programs for home buyers in Texas. Learn more about them. ... more
0 votes 10 answers Share Flag
A few hours ago
Densilucy answered:
The Freddie Mac First Look initiative came into effect on September 17, 2010.

This basically means that a home shopper can buy a HomeSteps home as their primary residence during the first 15 days of the property's listing without competition from investors. Nonprofit organizations may also buy during the 15-day window. ... more
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A few hours ago
Densilucy answered:
It is possible to use your built up home equity to purchase another property. The exact amount that is needed depends on the type of property you plan to buy and how you plan to use it.

Using existing home equity is a common strategy among homeowners to re-invest.

A lender will want to look at your debt to income ratios and total financial picture to understand what type of loan product would work best for you.
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0 votes 46 answers Share Flag
A few hours ago
Densilucy answered:
There are numerous construction lenders that can finance new construction loans with little to no down payment. When it comes to government insured mortgages, VA would be the only one that allows for a zero down on construction loans; however, most other programs allow for 3.5% (FHA) to 5% (conforming) down payment.

Find out more about the down payment guidelines for construction loans here: http://downpaymentguide.org
... more
0 votes 18 answers Share Flag
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