Sid Lopez, Home Buyer in Citrus Heights, CA

What is the minimum down payment possible, with FHA?

Asked by Sid Lopez, Citrus Heights, CA Fri Dec 6, 2013

I looked at some homes, but when i plugged in my 9-10 thousand down payment, it said there were no rates to quote, because my down payment was less than 20 %. I thought with FHA you did not need more than 3-5 % down ? Am I correct to assume this scenario ? On a home listed at 199k, what other costs should I anticipate to close this deal ?
Thank you

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Randall Ortiz, Agent, Sacramento, CA
Sat Dec 7, 2013
FHA is 3.5% down. If you put 20% down, it's conventional. I see you are in Citrus Heights, contact me if you need help with this, I'm in Sacramento and I can put you in contact with a local mortgage broker. 916-529-3707
1 vote
Wendy Zampar…, , Roseville, CA
Fri Jan 24, 2014
A ball park figure for "other costs" is 3% of the loan amount for median price homes and some of those costs can often be pad by the seller, the lender, the agent or some one else on behalf the borrower. There is a much wiggle room with a generic scenario such as what you stated.
Minimum Down Payment: 3.50% which can come from Immediate Family, Labor Union, Employer Group, Non Profit 501C3 and other down payment assistance
Up Front MI of: 1.75%, added to Loan
Monthly MI of: 1.25%
Maximum Loan Amount SFR: Loan amounts are set by counties. In many northern California counties, the limit is $580,000. Loan amounts above $417,000 have additional costs and or rate increases. In the San Francisco Bay Area, FHA loan limits are as high as $729,750.
Maximum Seller Concession: 6%
No minimum FICO requirements but most investors are holding to their own established minimum credit score corporate overlays

100% financing with no down payment!
Property must be 8 acres or less
Property can’t have a pool
Flexible Underwriting!
Properties must be located in eligible rural areas (generally towns with a population of 20,000 or less that are removed from an urban area)
Income limits are 115% of the U.S. Median Income (for most counties, the 4 person household income limit is $65,000 maximum)
No cash reserves are required
Borrowers are not required to be first time homebuyers
No Loan limit restrictions
Minimum credit score of 620 from most lenders

For Veterans
No down payment required
Loan amounts up to $650,000
Must have DD214 with honorable discharge
Fairly reasonable underwriting guidelines
Must be owner occupied
Multi-Unit by two or more eligible veterans may consist of up to 6 family units
Bankruptcy and foreclosures do not necessarily eliminate veteran from qualifying– looking for 2 years in most cases
No cash reserves required
0 votes
My NC Homes…, Agent, Chapel Hill, NC
Fri Jan 10, 2014
3.5% is the minimum down payment for an FHA loan.
0 votes
Michael Burns, Agent, Carlsbad, CA
Thu Jan 9, 2014
FHA will allow you to purchase a home for as little as 3.5 percent down. If you are a first time home buyer (defined as someone who has NEVER owned a home OR has not owned a home in at least 3 years), and your meet certain income restrictions (based on the size of your family), you may qualify for CalHFA's California Homebuyer's Down Payment Assistance Program (CHDAP). This program offers a deferred payment subordinating loan in the amount of 3% of the purchase price. In essence, CalHFA will "loan" you the money for 3% of the 3 1/2 percent required for the down payment so you end up only having to put down 1/2 of a percent of the purchase price. I have helped many of my clients obtain homes using this program. It really is a great program. I'm in Southern California, so I probably would not be the right fit to sell you a home in Sacramento (although I did live in Natomas for a short while..ha ha). But feel free to reach out to me (951) 216-8688 if you want some guidance on the process. Also, I would be happy to refer you to a couple of great lenders who SPECIALIZE in this type of loan and offer the best terms and rates. One lender that comes to mind is Richard Cocca at North South Mortgage (909) 215-1522. Good luck.

Michael Burns
0 votes
Maria Cipoll…, Agent, Coral Springs, FL
Thu Jan 9, 2014
Contact a mortgage broker that can explore all your financing options and advice properly. Mortgage brokers have access to many banks, private lenders and different programs.

Best of Luck,

Maria Cipollone
0 votes
Congratulations, this would be my answer.
Flag Thu Jan 16, 2014
Mike Xavier, Home Buyer, Chimayo, NM
Tue Jan 7, 2014
Talk to Karl Kimm at Alpine Mortgage Planning in Roseville. He's awesome! Ended up with four income properties since November 2012! Was using CHASE Bank until they screwed me over!

Karl's number is 916-960-0395.
0 votes
, ,
Sat Dec 7, 2013
Actually you can get conventional with as little as 5% down.

Let's discuss your loan scenario in more detail.Contact me at 800 315 8803. My name is Bart and I have been in the mortgage business since 1987. I am happy to answer your mortgage questions, 7 days a week and review your loan scenario.

Until then, I look forward to hearing from you.

Bart Gabe - 800 315 8803
Lending Since 1987
0 votes
Walter 'Skip'…, Agent, Brea, CA
Sat Dec 7, 2013
You can get FHA financing with 3.5% down. Other costs would include escrow, title, homeowner's insurance, and inspections. You might also need cash reserves for impounds. It is not as bad a it sounds. Have a local Realtor figure the exact amounts for you. They will do it free of charge.
Good luck,
0 votes
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