Your Down Payment Options…

I have borrowers ask me every day how much they need to put down to purchase a home.

Here are your minimum down payment options on the loan products currently available in the market place.

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 up front and monthly mortgage insurance.

Conventional: You will need 5% down for Conventional loans.

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.

That’s it for today!

Have a good day! …and thanks for reading.

Brett

Get Pre Approved For A Loan Here.
Get A Rate Quote Here.
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5 Ways To Pay Your Closing Costs…

When you buy a house you will have closing costs and prepaid taxes, insurance, and interest.

These costs are in addition to your down payment.

I want you to know there are other ways to pay closing costs and prepaids.

In fact, there are five different ways these costs can be paid. I’ll go through each one here…

1) You. …You are the borrower and you can pay these expenses yourself. Although I wouldn’t recommend it.

2) The seller. In my opinion this is your best bet. You simply ask the seller to pay these costs at the time you make your offer. If you are using a normal Texas Real Estate contract – you would write in the seller help amount under section 12. The reason it’s your best bet is that it’s the best combination of lowest rate, and least money out of your pocket at closing.

3) Gift. You can get a gift from a family member to pay your closing costs. The guidelines are different with each program for gift giving – so check with me before you attempt to go this route to make sure it’s appropriate for your loan program.

4) Grant. If you have access to a state or government grant program you can use this to pay these costs. There are some programs in Texas that you can use, and I have access to. Check with me to see if you qualify for these programs.

5) Loan officer and/or realtor. You can get help with paying your closing costs and prepaid expenses from the loan officer, and the realtor can help to.

Good luck house hunting, and give me a call or shoot me an email if you have more questions!

That’s it for today!

Have a good day! …and thanks for reading.

Brett

Get Pre Approved For A Loan Here.
Get A Rate Quote Here.
Need A Mortgage Calculator?

Here’s A Loan To Build Your Dream Home…

Did you know we do build out loans? …We do!

We can finance the acquizition of land, and the building of a home for you.

The max loan to value ratio is 80%, so you will either need 20% down, or you would need to own the land that would represent 20% of the overall appraised value of the home.

Here is what we would need on the construction side to get started…

1) Copy of contract on property to be purchased or HUD from property purchase.

2) Copy of plans and specifications.

3) Copy of construction contract and budget.

4) Survey.

If you or someone you know wants to build a home I’ll be happy to help you with this. Just give me a call or shoot me an email.

That’s it for today!

Have a good day! …and thanks for reading.

Brett

Get Pre Approved For A Loan Here.

Get A Rate Quote Here.

Need A Mortgage Calculator?

My Previous Blog Posts