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I know that subprime loans were a huge contributing factor to our current recession. However, I am just curious if I am looking at homes that are less than 200k would 5 percent down be accepted? How about 10 percent?
FHA you need 3.5% down.
USDA is 103% of appraisal and up to 6% towards closing costs is allowed to be paid by the seller, so no money down.
You should have no problem finding 5% if your credit is strong.
I know that subprime loans were a huge contributing factor to our current recession. However, I am just curious if I am looking at homes that are less than 200k would 5 percent down be accepted? How about 10 percent?
Thanks in advance for the help
I still see ads pushing 3% down here in SoCal: the Home of International Mortgage Fraud. However I'm sure you're NOT in this area because $200K here would only buy you a doghouse (needs some TLC!) & a water bowl (5 years new!).
We were approved for a 5% loan with excellent credit. We were just informed that because the area we are buying is considered an area in distress, we'd need to put down 10%. This is a conventional loan.
Thanks you so much for the replies, here is a little more about my situation:
I am currently only 17 so technically I have perfect credit. I have always been very interested in real estate, and am looking to buy in the next year or so, obviously after I turn 18. I have been saving money for awhile and will soon have about 7k to put down. I am not really serious yet, but I am curious about how much I would need to make to qualify for a 200k? 150k? house. I see a 170k house will be about 1100k per month which I am sure that I can afford, but what must my income be to qualify? I have been saving since my freshman year in HS for this. Will I be discriminated against because of my age?
Thanks you so much for the replies, here is a little more about my situation:
I am currently only 17 so technically I have perfect credit. I have always been very interested in real estate, and am looking to buy in the next year or so, obviously after I turn 18. I have been saving money for awhile and will soon have about 7k to put down. I am not really serious yet, but I am curious about how much I would need to make to qualify for a 200k? 150k? house. I see a 170k house will be about 1100k per month which I am sure that I can afford, but what must my income be to qualify? I have been saving since my freshman year in HS for this. Will I be discriminated against because of my age?
Thanks again, I really appreciate the replies.
Actually if you have had no credit cards or any other loans you do not have perfect credit, you have no credit history.
This and not your age will make it hard to get a loan.
Actually if you have had no credit cards or any other loans you do not have perfect credit, you have no credit history.
This and not your age will make it hard to get a loan.
Yes, this.
And keep in mind that on top of mortgage, you will also have to pay things like PMI, property taxes, homeowner's insurance, and possibly HOA fees. Depending on where you live, this could be several hundred dollars a month.
And when you close, you will need to bring money to the table for closing costs.
Keep up the good work saving, though. That's excellent!
Go to the website of nearly any bank and you can find a mortgage calculator where you will be able to change terms (interest rate, total borrowed, term of loan) etc to see what fits for you.
As others have said....
1. check the taxes on the property
2. Get an insurance quote - try the person who does other policies for you, sometimes you can get a slight discount if you have a car and property w the same carrier
3. Factor in PMI insurance
4. As the Realtor to get the monthly costs (electric, gas and HOA fees if applicable.)
5. Will you be cutting the lawn/shoveling snow or hiring someone? Factor that in too.
If I were you, I would get a credit card when you are 18 and make sure you pay it on time so you can start to build a history.
Sounds like you are off to a great start! Good luck.
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