The Minimum Down Payment On Your Loan Program...

 Good Morning!

I wanted to give you a brief updated summary of various loan products and the minimum down payment for each…

Loan Programs…

VA loan: No down payment necessary. No monthly MI. This is the best loan going if you can qualify for it.

USDA: No down payment necessary. Low monthly MI. Mainly for rural areas or outlying suburbs. Has geographic and income restrictions.

FHA: The minimum down payment is 3.5%. Great rates, has upfront and monthly mortgage insurance.

Conventional: 3% down for first time home buyers, and 5% for non first time home buyers.

The bottom line:

1) If you have less than 5% to put down VA and USDA are best if you qualify for them. Otherwise FHA is a wonderful loan program – very friendly to the borrower.

2) If you have 5% or more to put down you can get a Conventional loan, and you will have multiple loan choices.

Have a good day today!

…and thanks for reading.

Brett

Get Pre Approved For A Loan Here
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Make Sure Of This Before You Buy A House...

 Hello!

I touch on this from time to time, but it’s important so I want to revisit it…

One of the most important things you will have to do when you apply for a loan is to show that you have the money for the down payment.

This is called sourcing in the mortgage industry.

For instance, the minimum down payment on an FHA loan is 3.5%, and Conventional is 5% (3% for first time home buyers).

You can have this money in your checking account or savings account now. You can borrow it from your retirement account.

…You can even get the down payment as a gift.

…but, it’s crucial that we are able to show where it’s coming from.

I can tell you that cash is a problem when it comes to sourcing your down payment. You will need to put it in the bank and leave it for 60 days before we can use it.

If you aren’t sure where your down payment is coming from – find out now.

..before you apply for a loan.

That’s it for today.

Thanks for reading!

Brett 

 

Get Pre Approved For A Loan Here
My Previous Blog

New Conventional Loan Limits...

 Hello!

I wanted to let you know that as of last week we have increased the Conforming loan limit to 715k.

This is good for both buyers and sellers.  It means more people will be able to qualify for loans in this price range, and hopefully more houses will be sold.

Jumbo rates are higher than Conventional rates, and the down payment is higher also.

If you want to see if you or someone you know will qualify for financing just reach out to our office.  We are here to help you!

That's it for today!

Have a great week!

Brett

 

Get Pre Approved For A Loan Here
My Previous Blog