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Old 03-14-2011, 09:21 PM
 
19 posts, read 27,807 times
Reputation: 10

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Are 5% downpayments still possible with a conventional mortgage?

I am just wondering because I will be moving to the area in June from Buffalo, NY where the typical house is under $200k to NOVA where we'll probably have to spend at least $550k for a detached single family home.

As a first time home buyer I just wonder how anyone can afford 20% down for their first home, I mean if the house is $600k thats $120k!!!

Even with my "high" salary that will still take years to come up with. So, I'm just interested to hear from people in real estate if they think 5% down is still common with NOVA?

Thanks.
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Old 03-14-2011, 09:26 PM
 
Location: Everywhere and Nowhere
14,141 posts, read 16,300,253 times
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I think you can still get FHA loans with 3.5% down.
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Old 03-14-2011, 09:30 PM
 
Location: Fairfax, VA
1,422 posts, read 1,532,438 times
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good question - I'm curious about the same thing. Before, most people came up with 5% for their first/starter home and then could come up with a larger downpayment when they sold that house for a profit. We don't put a ton aside for straight savings, plus we don't want to drain that entirely for a downpayment.
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Old 03-14-2011, 09:32 PM
 
Location: Virginia
5,295 posts, read 6,775,808 times
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We put down 7% when we moved to Springfield in '09. Sales price on our SFH was $428k. The loan was an 80/20 through our credit union. The downpayment went on the 80%. You might not have to spend 550k. Where are you looking?
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Old 03-14-2011, 09:35 PM
 
19 posts, read 27,807 times
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Quote:
Originally Posted by tgbwc View Post
We put down 7% when we moved to Springfield in '09. Sales price on our SFH was $428k. You might not have to spend 550k. Where are you looking?
Reston area most likely. I am sure I can find something around $500k, but the question still applies.
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Old 03-14-2011, 10:09 PM
 
87 posts, read 183,223 times
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Quote:
Originally Posted by CAVA1990 View Post
I think you can still get FHA loans with 3.5% down.
We went this route in the end of 2009 for our home. We only put 3.5% down on our South Riding townhome. You just have to pay PMI.
Let FHA Loans Help You - HUD
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Old 03-14-2011, 10:11 PM
 
Location: Northern Virginia
4,489 posts, read 5,570,354 times
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Quote:
Originally Posted by rwingace View Post
As a first time home buyer I just wonder how anyone can afford 20% down for their first home, I mean if the house is $600k thats $120k!!!
Most people aren't paying $600k for their first home. DH and I are looking to buy this summer, and are aiming for the $350k range (for a SFH in Annandale or Springfield, most likely).
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Old 03-15-2011, 06:30 AM
Status: "Now working for a true portfolio lender" (set 18 days ago)
 
Location: MID ATLANTIC
3,977 posts, read 8,602,254 times
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My competition will tell you it's illegal, not available, or one customer was told, "it's not good for you" but I work for a small regional bank in Northern VA and we are doing 80/15/5 loans (5% down) without PMI.

I'm not on the site to solicit business, so DM me if you would like more information.
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Old 03-15-2011, 06:36 AM
 
Location: among the clustered spires
2,289 posts, read 2,110,836 times
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Quote:
Originally Posted by SmartMoney View Post
My competition will tell you it's illegal, not available, or one customer was told, "it's not good for you" but I work for a small regional bank in Northern VA and we are doing 80/15/5 loans (5% down) without PMI.

I'm not on the site to solicit business, so DM me if you would like more information.
1) Illegal? That's odd.
2) Not available? This is more true, I know I was told flat-out by Wells Fargo, BB&T, and NWFCU, nope, no loans above 80% LTV available. I did find a bank that was willing to give me a 90% mortgage at a nice rate, no PMI. Another bank was willing to give me an 80-10 with 10% down but the 10% was a HELOC with 9.5% interest. Plus the rate on the 80% loan was pretty high.
3) Not good for you? Well, that may be true for some people.

OP, PM me for the details
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Old 03-15-2011, 06:45 AM
 
Location: Northern Virginia
1,776 posts, read 1,593,981 times
Reputation: 2222
Check out the FHA Plus program. This program requires no down payment.

There are certain guidelines that you have to fall within to qualify, there is PMI and a VHDA training course that you are required to complete but it's worth looking into as you might fall within those guidelines. My husband and I bought our home using this program last summer. If it wasn't available, we'd still be renting and saving our down payment.

They even offer an overage (103% financing, if I recall correctly). You can use that extra percentage to help with closing costs if the Seller won't pay them. We used our overage to buy points off our interest rate since our Seller paid the closing costs.
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