Is 5% down enough? (mortgage, mortgages, sale, housing)
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We bought our 1st home through FHA 5 years ago and had to put very little down. We bought our second house 3 years ago and put 5% down.
We have excellent credit and not much debt at all. Will 5% be enough in this market, say late this summer? That's when our rental lease will be up. I know there are probably several factors that play into it.
I don't mean we're trying to qualify for FHA again, we had a conventional mortgage with our second home and intent to seek pre approval for another one. Of course I know I need to speak to a lender , just looking for opinions.
To qualify depending on your credit and if the lendors will lend, sure. Will you need more money? Oh yea. Even after the sale I am wishing I had more money. So much more to do to our home and I don't want to spend my reserve fund. My next purchase if their ever is one, I want to have cash on hand and no debt plus 10% for the home. To explain we put in a new water heater, rebuilt our furnace, replaced the carpet, repaired all the interior walls, repainted in colors we liked, and a few other things all before moving in. Then again this was a bank owned take it as it is home. Maybe next time we will buy a new place. LOL. To tell you the truth we both like our home and have no desire to leave this place. LOL
Yes, 5% is enough for a conventional. If you can't find a lender that does a combo (80/15/5), you'll have to pay PMI. Seriously, look around, many don't believe that the combo mortgages still are around, but I assure you, we do exist.
There are loans available out there from 0% down to 25% down (or more). It all depends upon where you live (USDA 100% loans are only available in "rural" areas). 5% for a down payment may be enough providing everything else falls into place, such as your credit score, etc. Find a good real estate agent/lender combination and they will be your best partners in your new home purchase.
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