How much do I need for a down payment if I want to buy a house for my mother?

Asked by dventura, Waddell, AZ Fri Feb 22, 2013

I own my current home (not outright) and we are maybe $10K upside down. We have an appt with our realtor next week to go over comps in the area. The second home I am looking at for my mother is around $70K. What is the min down payment that I am going to need and what is the minimum amount that I can get financed? I have heard that lenders don't like to finance less than $50K. Is that true? Thanks in advance for any information.

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Tim Moore, Agent, Kitty Hawk, NC
Fri Feb 22, 2013
Your first meeting should be with a couple lenders, not the Realtor. You need to be educated on loans.
$50k is about right unless you find a lender that holds loans in house.
Down payments are based on the type of loan you get, FHA requires 3.5% and conventional is between 5,10,20% depending on the loan. Go speak to some lenders or call a couple at the very least .
0 votes
thank you. I will contact a few lenders.
Flag Fri Feb 22, 2013
Judy Golland, Agent, Randolph, NJ
Fri Feb 22, 2013
Down payment requirements depend upon the type of loan and the amount of the loan for which you qualify. There are loans that require no down payments, for example, but have additional restrictions. The process of obtaining mortgages has become quite complex. It is best to speak with a reputable and experienced mortgage lender before pursuing a home. I would be happy to direct you to one.
0 votes
Thanks but unfortunately I didn't change the city when I registered with Trulia and Im not in NJ. Im actually in AZ. Score and debt to income ratios aren't a problem with my situation so I was mainly concerned with the DP % and the min financed.
Flag Fri Feb 22, 2013
Michael Spin…, Agent, Sparta, NJ
Fri Feb 22, 2013
The DP will depend on what type of loan you qualify for and if you are going to occupy the property with her.
If you would like to discuss your scenario I can be reached at 973-670-9948. I am local to your area

Michael Spinetta
Mortgage Loan Originator, NMLS: 124703
115 Route 46 West – Building D, Suite 32
Mountain Lakes, NJ 07046
Mob: 973.670.9948
E-Fax: 877-693-2170
0 votes
No Im not occupying the property with her. This is strictly a home for her. She won't be paying rent either.
Flag Fri Feb 22, 2013
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