What's the current low down payment %? (3%, fees, PMI, condo)

[paddy205]

The last time I bought a house was in 2005 before the "crash" and lending fiasco broke. At that time, it was not uncommon to put 5% or less down. What is the current lowest down payment I can expect to put down and still get approved for a loan? I am looking at houses in the $150-200K range but only want to put $10-15K down (5-10%, preferably 5%). I have decent credit and good income.

[trickymost]

Sadly (or fortunately in your situation) we are back to low to no downpayment options.

A standard FHA loan requires 3% down. I've heard there are still 0% down and low doc options available, although they're not nearly as easy to get or as widespread as they were a few years back.

Alternatively, the less you put down, the higher you can expect your rate to be as well as the more you'll have to pay in PMI. This may make the loan easier to acquire but more expensive to service.

[MissNM]

Actually FHA is now 3.5%.

[rjrcm]

Originally Posted by MissNM

Actually FHA is now 3.5%.

Correct. Also, a USDA loan is 0%, but only available for areas defined as rural. You should be able to find conventional 5-10% down.

[Silverfall]

If you are a vet VA will do 100% financing also.

[MikeJaquish]

Some Credit unions are offering 100%. Some want the Buyer to have $500 into the deal.
Some Banks have Community Development shelf loans at 100%.

If you are a physician, out of school more than 4 years, you may be able to get JUMBO financing at 100%.

[homeowner35]

It depends. Coops will not look at you unless you have 10%. Many will not give you a loan unless you have 20%. A condo I visited wanted at least 10%. Why are so many people taking out FHA loans? That is not a desirable loan. Aren't there additional fees associated with this loan? Why not a Sonyma? It is a better loan.

[rjrcm]

Originally Posted by homeowner35

Why not a Sonyma? It is a better loan.

From OP's location in NJ, appears they would not be eligible for Sonyma.

[homeowner35]

Originally Posted by rjrcm

From OP's location in NJ, appears they would not be eligible for Sonyma.

Thanks for the catch. I have seen property in NJ and I was told most banks want 10% for a condo.

[MikeJaquish]

FHA is not an undesirable loan.
It is not a difficult process, certainly not the tarpit many seem to recall.

One marketable benefit is that the loan is assumable, and if the hyper-inflation that many predict comes to visit, the assumable FHA loan, fixed at today's rate, will make an attractive selling point.