when being a first time buyer, would I have to make any down payment on a home?

Asked by Katherine86, West Palm Beach, FL Tue Jan 29, 2013

I dont really know how this industry works but what are the payments that have to be made when buying for the first time, besides the monthly mortgage payment?

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Stephen McRory’s answer
Stephen McRo…, Mortgage Broker Or Lender, Tampa, FL
Wed Jan 30, 2013

First of all, unless you want to live in the Everglades, the 100% USDA loan is not an option are you'd have to live quite a ways west of Hwy 95.

Second, I'm assuming you're not prior military or you'd be very aware of the 100% VA loan.

There is a 100.00 down FHA program, but its on spacific properties and not likley you'll find one you'll like in the area you wish to live.

The next lowest down pament loan is 3% down. This is NOT an FHA loan that requires 3.5% down, it does NOT have the 1.75% FHA financed MIP fee and does NOT have the monthly Mortgage Insurance payment.

see a quick list of loan programs at: http://www.pro-option.com and contact me after 2:00 today

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Bob Brubaker, Agent, Lake Worth, FL
Tue Jan 29, 2013
Katherine: Great Question! These costs you are asking about
can best be thought of as " Up-Front Costs" ! Essentially 3 parts!
There would usually be a " Downpayment " ( your contibution to the
Purchase Price) most financing has some required %
. Second
There are " closing Costs " for Legal work and Title Searches,
lender's fees, Recording fees,etc.
Third would entail " fees paid outside of Closing " POC
These are items such as pre-payments for Insurance,
Appraisal fees, Mortgage Application Fees, Inspection
fees for "Home inspection" , Pest Infestation,and the like.
These are costs to you. The professionals you choose
will give you a clear picture of how far your $'s wil go!
and how a deal would be structured.

I would recomend a " sit down" with both a Mortgage Lender,
and a Local Agent to get an idea of what is "reasonable and
Customary. Contact me directly for more. Glad to help!

Bob Brubaker Highlight Realty Palm Beach County Fl. 561-876-6649
Web Reference:  http://pbc-realcam.com
0 votes
marc jablon,…, Agent, Boca Raton, FL
Tue Jan 29, 2013
If you are planning to purchase a west palm beach home, you will need to make some kind of downpayment, even if you are able to pay cash. The buyer will want an earnest money deposit, just so he or she knows you are serious.

In terms of mortgage downpayments, you will first want to determine what kind of mortgage you qualify for. Your best source for that is a reliable mortgage banker. Call Preston Ware at 561-329-0075 or go to PrestonWare.com

Your monthly mortgage payments will vary based upon the type of mortgage you obtain and the price of the home in West Palm Beach that you purchase.

Marc Jablon, The Jablon Team
RE/MAX Complete Solutions
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Jennifer Rob…, Agent, Oklahoma City, OK
Tue Jan 29, 2013
Depends on the type of loan you get. VA, which is a Veterans loan is zero down. FHA is usually 3.5% but they do have programs if you qualify that allow $100 down. Conventional loans are 5,10,20% down. Closing costs are another expense that include title work, inspections, commissions and down payment. Once you decide your lender ask them for a GFE ( good faith estimate) this is the total you can expect to have to bring to closing. If you need a lender let me know and I can recommend some one.
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Jared Dalto, Agent, Boca Raton, FL
Tue Jan 29, 2013
If you qualify for FHA as little as 3.5%.
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Annette Law…, Agent, Palm Harbor, FL
Tue Jan 29, 2013
Yes, you will and Yes you should.
If you do not have the money saved for a down payment, it is most likely that now is not the right time for you to buy.
There are exceptions and you may be one.
Here is what I would recommend.
Get your finances in order so that you will be ready, able and willing to buy the house you want, NOT the house you think you can afford today. Start with consulting with a local lender. A lender who has a history of investing in the community. These are 'A' And "B' graded lenders. The big banks, who rob the community through late fees and add on charges, you will discove,r are "F" graded lenders.
When you consult with an "A" or "B" graded lender, let them know your home purchase plans. If you do not have an idea regarding the price of a home that meets your requirements, a real estate pro can help.
The local lender will advise you regarding how to be financially prepared with the right level of debt and sufficient savings. The plan they lay out will also have a time line that will indicate when you should start looking seriously for a home. Simply enter your city or zip code and select the "A" or "B" graded lender of your choice.
Now, go to: http://www.BankingGrades.com

Take note of the West Palm Beach real estate professional who respond to your question. You will want to give one of the a CALL when the time is right. That could be right now.
Don't use that 'contact' link.
Don't rely on Trulia email.
Go old school and call,
but only if you are serious.

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
0 votes
Dorothy Bass, Agent, Pompano Beach, FL
Tue Jan 29, 2013
Unless you are a veteran or qualify as a low income buyer in a rural area, chances are you will need some sort of deposit. If the property qualifies for FHA financing, then you will need 3.5% down payment. Don't forget that there is also closing cost.

If you are searching for property in South Florida, then contact me. I will be able to advise you on the type of loan that you may get on a particular property. There is also, in some situations the opportunity to have a seller help you to pay your closing cost.

Another important program to consider is a program that will allow you to get up to 50% of your interest back each year as a credit on your tax return. Contact me for details on this.

I have banking background and real estate knowledge to help you through this process.
0 votes
, ,
Tue Jan 29, 2013
Hi Katherine, The popular program of choice for first time homebuyers is an FHA 30 year fixed. This program requires 3.5% down or if you are getting a gift from family, 5% down. If you are in a situation when the majority of your funds to close are coming in from other sources later,(such as a gift or income tax refund) you may secure the property with a deposit of say $1000 or $5000 and bring the remainder of the funds at closing. Hope this helps. - Preston
0 votes
Stephen McRo…, Mortgage Broker Or Lender, Tampa, FL
Tue Jan 29, 2013

After reviewing these programs below, please email me at Steve@pro-option.com with the ones you'd like more info about:

1) 100% LTV- VA - pay off debt at closing on a purchases too!

2) 100% LTV- USDA - 12 mo. into Chapter 13 BK…OK Too!

3) 99% LTV- FHA

4) 97% LTV- NEW- No PMI -No FHA 1.75% MIP Fee!

5) 95% LTV- NEW-No PMI!

6) 95% LTV- NEW-CONDO Loan

7) 90% LTV- NEW-No PMI -2nd Home

8) 90% LTV- New-Jumbo w/cc

9) 85% LTV- NEW- No PMI to Super Jumbo

10) 80% LTV- Rental Property

Stated Income Alt Loan programs

11) 80% LTV- to Super Jumbo

12) 80% LTV- FIX n’ FLIP Invest. Prop. – No min. credit!

13) 75% LTV-to Mega Jumbo

14) 75% LTV- Foreign Nationals-to Super Jumbo

15) 75% CLTV-after Short Sale, BK, Foreclosure to Super Jumbo

16) 70% LTV- Hard Money to Jumbo

17) Lot Loans / Land Loans Too!
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Scott Godzyk, Agent, Manchester, NH
Tue Jan 29, 2013
Your first step should be to meet a local and trusted loan officer who can pre-qualify you at no cost and let you know what types of mortages you may quailify for. there is not many no down payment mortages any more. VA and usda are about it. There are down payment assistance programs and grants in some states and fha is lonly 3.5% down. They will guide you through the process.
0 votes
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