Down Payment Requirements For Various Loan Programs...

 Good Morning!

One of the most common questions I get from borrowers is “How much will I have to put down to get a mortgage?”

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

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: You will need 5% down for Conventional loans. (3% for 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.

That’s it for today!

Have a good day! …and thanks for reading.

Brett

 

Get Pre Approved For A Loan Here
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Don't Do This When Applying For A Mortgage...

 Good Morning!

Mortgage tip: If you are about to get into the loan process to buy or refinance a house – don’t go out and buy things on credit.

It sounds simple, and you would think most people would know this without being told.

…but, I have a loan right now where a borrower got himself into trouble from doing just this very thing.

There are three possible complications:

1) You have to explain the inquiries on your credit.

2) It will raise your debt to income ratio if you take on additional credit.

3) If you finance an amount over 50% of the available credit it could negatively affect your credit score.

So, while you are in the loan process – don’t apply for anything that would involve credit.  (appliances, lawn equipment, etc.)

That’s it for today.

Thanks for reading!

Brett

 

Get Pre Approved For A Loan Here
My Previous Blog

Proper Way To Complete A Lease Option...

 Good Morning!

When you give someone option money at the onset of a lease option agreement – you are going to have to prove you gave that money when you get a loan to buy that house.

How do you prove it?

If it’s certified funds you need to keep a copy of the certified check.

If it was a personal check – you need to keep a copy of the cancelled check (front and back).

Don’t give cash!

Anything less than this – the underwriter will not give you credit for giving that money.

That’s it for today!

Have a good day today! …and thanks for reading.

Brett

 

Get Pre Approved For A Loan Here
My Previous Blog