Can I purchase a $400K with 5% down payment nowadays?

Asked by THT, Boston, MA Wed Nov 14, 2012

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Sat Jun 1, 2013
Yes and one of the best financing options in this situation is to do an LPMI (means "Lender-Paid Private Mortgage Insurance) loan. With this type of mortgage you don't need to pay a seperate monthly PMI payment, because the lender does. Although the rate is slightly higher as a result, the overall monthly payment is considerably less, keeping your housing expense to a minimum.
1 vote
June Siple,…, , 02129
Wed Nov 14, 2012
Depending on your specific situation, I would recommend looking into Mass Housing loans. FHA requires 3.5% down, whereas MA Housing is only 3%, and the requirements, especially concerning condo purchases, has made FHA a less desirable loan option. It can take longer to close than a Mass housing, and most importantly, FHA requires PMI (private mortgage insurance), where MA Housing has a no PMI program. The interest rate is a bit higher but not so much that your payment is seriously affected. Closing costs are less because you don't have the upfront PMI payments included. You can also go with a regular conventional loan with 5% down, but you will have PMI on top of your payments.
1 vote
Moy Lopez, Mortgage Broker Or Lender, Quincy, MA
Mon May 27, 2013
Just wanted to add that the FHA also makes it possible to purchase 2-4 family properties with as little as 3.5% down. Whats more, with a FHA 203K loan, you can purchase and renovate a home with 3.5% down payment based on the price of the home plus the cost of the renovations ( Total Acquisition Cost).

So if you find a home in the right location but it needs some updating, then check out FHA 203K loan. Its a great way to make that diamond in the rough shine!
0 votes
Heath Coker, Agent, Falmouth, MA
Sun May 26, 2013
I would contact a local lending professional to help with this answer.
There is not enough detail in your question.

I know this guy can be helpful:
Bob Tranchell Total Mortgage Services LLC (508) 367-5731 cell

(Please note: when you choose an answer as a Best Answer, or at least give a thumbs up, it helps those who answer questions here.)
0 votes
Mikel DeFran…, Agent, Canton, MA
Sun Nov 25, 2012
Yes... as discussed 3.5% FHA or 3% Masshousing may also be an option for you. Speak to your mortgage professional or I could certainly put you in touch with an excellent local lender.
0 votes
Mario Pavli, Agent, Boston, MA
Thu Nov 15, 2012
Absolutely you can. As long as you meet the requirements you can even put down 3.5% for an FHA loan.
0 votes
Meri Galstian, Agent, Boston, MA
Wed Nov 14, 2012
Yes, 5% is definitely doable. You can even put down as little as 3% for MA housing and 3.5% for FHA as long as you meet the income and loan specifications. Talk to your local mortgage broker to see what you are eligible for!
0 votes
Scott McCaul…, Other Pro, Portsmouth, NH
Wed Nov 14, 2012
Yes you can, as long as it is your primary residence. You could even go with less down through an FHA loan(3.5% down).

I would be happy to asist in pre-qualifying you to see which loan option would make the most sense. There is no cost or obligation. Please contact me for more info.

Scott McCauley
Licensed Mortgage Planner
Regency Mortgage Corp
NMLS #174108
Ph: 603-380-3798
0 votes
Johnny James, Agent, Carson, CA
Wed Nov 14, 2012
There are many factors involved in being approved for a loan, the down payment is only one aspect.
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CH Naamad, Agent, Boston, MA
Wed Nov 14, 2012
Yes, you can.
However, this depends on credit worthiness and the property in question, whether it is FHA approves or not.
Your broker and your mortgage broker can provide you with this information.
Best regards,
0 votes
Stephen Bour…, Agent, Brookline, MA
Wed Nov 14, 2012
FHA loans are available for as little as 3% down. Contact a mortgage broker or the loan rep at your bank for a no cost pre-qual consultation and they can point you in the right direction.

Best Wishes,
Stephen Bourassa
City Central Realty, LLC
0 votes
Richard Shap…, , Framingham, MA
Wed Nov 14, 2012
5% down at that loan amount is no problem. Long as your credit it is okay
0 votes
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