2006-08-27 04:01:33 · 9 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
There is no typical amount. Mortgage loans with no down payment are gaining in popularity. However, depending on your credit & income, you may have to put some money down. Also, you would probably qualify for a lower interest rate if you had some down payment (5% to 10%). In order to avoid MI (Mortgage Insurance), you would need 20% down (or do a combo 80/20 loan).
Now, how much money do you need? Even 100% loans with no down payment have closing costs. The costs can range anywhere between $3,000 to $6,000 depending on the sales price, loan amount, and your credit history. Keep in mind that the seller can pay most, if not all, of these costs for you if negotiated in the sales contract.
Rick Lanicek
www.primelendingonline.com
2006-08-27 04:09:56 · answer #1 · answered by Anonymous · 1⤊ 0⤋
It depends on several factors. There are many ways that you can achieve 100% financing even without perfect credit but if you are planning on using a conforming loan (standard terms and conditions) you will need anything from 5% to 20%, 10% being quite normal.
Even with conforming loans, sellers may be willing to carry back a second mortgage for the amount which would represent your down payment.
I would suggest that you contact an independent mortgage broker that represents multiple lenders and seek their assistance in researching the best product for the home you are interested in buying.
2006-08-27 05:23:16 · answer #2 · answered by Sailbad 1 · 0⤊ 0⤋
The "classic" home loan requires a 20% or larger down payment. However there are many programs, especially for first-time buyers, that provide for much smaller down payment requirements. As little as zero down is possible.
2006-08-27 04:54:50 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 0⤋
It depends on your circumstances and the type of loan you get and your willingness to pay PMI. Generally you will need about 5% just to cover closing costs, escrows, etc regardless of what you put down on the house. You can get traditional loans with 3% down (or even less with seller assists) or 80/20 loans will allow you to put nothing down but the closing costs.
2006-08-27 04:08:28 · answer #4 · answered by TheDude 3 · 1⤊ 0⤋
In Canada, bank require 25% downpayment and first time homebuyers can get a house with 5% down. with the assistance of CHMC (Canadian Housing Mortgage Corporation).
2006-08-27 04:06:52 · answer #5 · answered by capollar 4 · 1⤊ 0⤋
Generally 10% down, although sometimes 5% can suffice.
2006-08-27 04:05:49 · answer #6 · answered by Anonymous · 0⤊ 0⤋
20% is best when buying for the long term lower for the short term unless you need to outbid someone
2006-08-27 04:58:46 · answer #7 · answered by goldengirl 4 · 0⤊ 0⤋
anywhere from 0 to 20%, depending on your financing. usually around 1000.00 for earnest money
2006-08-27 04:04:35 · answer #8 · answered by daniel r 4 · 1⤊ 0⤋
10% to 20% of the full amount i think.
and how much you make from your work.
2006-08-27 06:25:19 · answer #9 · answered by DENISE 6 · 0⤊ 0⤋