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Old 01-02-2009, 09:12 AM
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I'm interested in knowing what the lowest downpayment requirements are for both conforming and non-conforming loans for 30-year fixed rate mortgages. Assume good credit. I realize FHA requires 3.5% but what about non-FHA loans? This question pertains to the purchase of a new home, not a refinance.

Thank you in advance!
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Old 01-02-2009, 11:12 AM
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It really depends upon your market and the type of property you plan to purchase. For example, many lenders are still classifying certain areas as declining markets and would require an additional 5% down on top of normal down payments (while Fannie has since removed this restriction).

To answer your question in the broadest sense, plan on 5% down should be the minimum, unless a condo. Many areas you can still get 80/15/5 or 80/10/10 (meaning you can avoid mortgage insurance if you get two loans instead of one). It willl take an excellent score to get there. This would be true of a purchase price up to 521K (and keeps you out of the "jumbo conforming). Most of the jumbo loans I have seen require 10% down.

When you say "new" home, if it's new construction, to be delivered well into the future by a builder, well, almost every builder mortgage company got left holding the bag on loans they could not close due to guideline changes. They do not use their own money and don't offer long-term locks. The new construction contract requires serious scrutiny in this market.

If you mean "new home" as in resale, you shouldn't have any issues.
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