What is you don't have the 20% to put down on a house?

Asked by Yalandra Smith, Philadelphia, PA Thu Apr 29, 2010

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Thu Apr 29, 2010
Hello Yalandra.

Yoiu don't need to have 20% down. In simple terms the larger the downpayment and the higher the credit score, the lower the interest rate that you will pay.
FHA financing requires that you put 3.5% down and that can even be a gift from a relative.
If you are a veteran, you can apply for a VA loan where there is no down payment required. There are also certain Pennsylvania State programs that require as little as $500 down.
As a buyer you need to speak with a mortgage broker like myself to find out what programs you do qualify for before searching for a home.

Alan Openshaw
Cornerstone Lending Inc
215 674 9059
1 vote
Larry Lichtm…, Agent, Bala Cynwyd, PA
Thu Apr 29, 2010
Hi Yalandra,

The down payment you will need all depends on your credit rating and financing programs you may qualify for. If you have a FICO credit score of atleast 620+, you may be able to qualify for an FHA insured mortgage which only requires a 3.5% down payment. Other conventional mortgage programs may require a 5-20% down payment. There are also other closing costs to take into consideration when buying a home.

Your first step should be getting yourself pre-qualified and approved for a mortgage. If you don't know anyone, I recommend you call Ed Dubinsky from United Capital Lenders at 215-808-5353. Once you learn what programs are available to you , we will know how to proceed with your house search from there. Please feel free to contact me at your convenience if you have any other questions, or would like to speak with me about the mortgage approval process before we start your property search. I look forward to speaking with you soon.

All the best,
Larry Lichtman
Your Real Estate Resource For Life
CELL (267) 254-7994
1 vote
Community Mo…, Home Buyer, Philadelphia, PA
Thu Apr 29, 2010
Who told you you need 20% as your downpayment........you should try FHA and your downpayment can be a low as 3.5%.

Hey, why not try a PHFA/FHA .....your down payment would be 3.5% and you could get up to $3K from them to help with your closing cost. That along with 6% seller assit would make things really nice for you.
0 votes
David Beck, , Bucks County, PA
Thu Apr 29, 2010
Hello Yalandra,

How much you need to put down on a mortgage is often a mystery to those that rent. Lucky for you; depending on your credit and income, you could be very pleasantly surprised how little you will need to buy a home compared to what you expected.

It's important that you feel comfortable with who you are working with and that they explain things in plain English instead of mortgage and real estate language, especially when buying your first home.

I would be happy to answer any questions you may have about mortgages with no cost or obligation.

David Beck
First Rate Mortgage Group
407 East Pennsylvania Boulevard
Feasterville, PA 19053
office: 215 322 4121
e-mail: dave@firstratemortgagegroup.com
visit us on the web at: http://www.firstratemortgagegroup.com
0 votes
Carol Cei, Agent, Maple Glen, PA
Thu Apr 29, 2010
Hello, Yalandra,

You DON'T have to put 20% down, but if you put less you will pay an additional fee for private mortgage insurance. This is a small price to pay for purchasing a home with very little money down. If you are short on cash, there are programs and incentives for first time buyers where you can get some help with your downpayment funds. There are even some programs where you will not have to have a score as high as 620...did you know that?

I have a great deal of experience which would be helpful to you in this area. If you would like to discuss further, please contact me at your convenience.

Carol Cei
ReMax Millennium
0 votes
Mike B, , Raritan, NJ
Thu Apr 29, 2010
As many have stated, an FHA loan with 3.5% down is a great financing program. You can negotiate an offer to include the seller paying a portion of your closing costs as well.

I offer FHA loans if you would like a free, no-obligation, consultation.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Thu Apr 29, 2010
If you have a credit score of 620 or better, consider an FHA loan, currently they require a minimum downpayment of 3.5%.
0 votes
Sean Dawes, , Philadelphia, PA
Thu Apr 29, 2010
Also to add to what James said, you will need to pay closing costs which in many situations can be assisted into your mortgage.

Sean Dawes
0 votes
James Yoakum,…, , Philadelphia, PA
Thu Apr 29, 2010
Right now FHA loans are the best option for putting less money down up front. They only require 3.5% down payment and they allow you to ask the seller to pay for part of your closing costs. The downside is that you have to pay a mortgage insurance premium up front and on a monthly basis which increases your monthly payment compared to putting down more up front. I can recommend some great FHA lenders if you like.


James Yoakum - Realtor, SFR
Brown McKinney Real Estate
1631 W. Cabot St.
Philadelphia, PA 19121
office: 215-825-2250 x.1002
cell: 267-496-7739
fax: 610-910-3046
0 votes
Dp2, , Virginia
Thu Apr 29, 2010
Some conventional lenders might be willing to work with you. FHA loans are another option, and creative financing is another option.
0 votes
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