Home Buying in 19149>Question Details

Jie, Home Buyer in Oxford Circle/ Castor,...

My friend said the downpayment must be 20% now. Is that true?

Asked by Jie, Oxford Circle/ Castor, Philadelphia, PA Tue May 18, 2010

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11
Hello Jie,

you can pout down as little as 3.5% and have the seller finance the closing costs.
On a $50,000 purchaseyour expected down payment will be $1750.
On a $130,000 purchase your expected down payment will be $4550.

However, in June the FHA is going to be limiting the seller assist towards closing costs which may mean that you may have to contribute towards some of those costs.
Call me and I'll get you pre-approved.

Best Regards,
Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
0 votes Thank Flag Link Thu May 20, 2010
Jie, That is not true. FHA is 3.5% down, conventional is 5% down. If you'd like to discuss mortgage options in more detail feel free to email or call me. Have a good night. Chad 610 457 7262 cbahnsen@mortgagenetwork.com
0 votes Thank Flag Link Wed May 19, 2010
Depends on your credit score, your debt, your ability to verify your income. You need to talk with a mortgage lender to determine what you are qualified for.
0 votes Thank Flag Link Wed May 19, 2010
Good Evening Jie,

Being a former mortgage professional there are multiple factors that will dictate your minimum. If you go conventional it will be different than FHA. If your credit is in the 700+ range you have greater possibilities. If you would like to discuss in detail and get a GFE estimate based on your specific situation please contact me.

Thanks,

Justin O'Malley
Long and Foster
6th and Walnut St
610-457-4727
justin.omalley@longandfoster.com
0 votes Thank Flag Link Tue May 18, 2010
Hi Jie --

You can put less than 20% down on any type of property. I have been a Mortgage Advisor for 9 years and can walk you through the details and adjustments based upon the type of property you plan to purchase. Call me at 610.291.1460 or e-mail at MMcDonnell@phillyadvisors.com.

Maura
0 votes Thank Flag Link Tue May 18, 2010
Hi there - my suggestion is to connect with a mortgage pro in your area - if you don't have one, your agent can make recommendations. That discussion will help you confirm that you are trageting the right price range and also provide you the information you need regarding down payment requirements for different loan products. FHA financing is still available and you can go as low as 3.5% with your down payment.

Good luck,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Tue May 18, 2010
Jie, this is a misconception that even some real estate agents have. First of all, you can put a lot less down if you are taking out an FHA loan. What you can't do any more is put together 2 loans that equal more than 80% to avoid PMI.
Michael, I would advise most investors to put down 25% because the adjustment to rate with only 20% down is so much that it just doesn't make sense, especially if it is a multi-family, so you have 2 different adjustments. It gets difficult to price the loan out without points. If you are paying points, you might as well put more down.
0 votes Thank Flag Link Tue May 18, 2010
I am a first home buyer. I am looking the home around 19149 area. I am looking for a house around $ 50000.00 to $ 130000.00, so in my situation, what is my minium downpayment?
0 votes Thank Flag Link Tue May 18, 2010
What are you looking to purchase--generally with 20% down you will avoid paying PMI--Private Mortgage Insurance--an insurance lenders require on any loan less than 20%.
0 votes Thank Flag Link Tue May 18, 2010
Some lenders are requiring larger downpaymets, but maybe your friend is reffering to 20% down to avoid having to pay PMI.
0 votes Thank Flag Link Tue May 18, 2010
20% downpayment for investement property is the norm today, 25-30% for commerical properties
0 votes Thank Flag Link Tue May 18, 2010
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