My husband and I are planning to buy a studio or one bedroom apartment in South Beach next year. Do you know how much of a down payment would be required? We are from the NY/NJ area, and here people pay 15% to 20% as a down payment, but we have been told that we can pay as little as 5% to 10% in Miami. Is this true?
2006-09-19 17:21:46 · 5 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
We're not trying to flip it and don't plan to sell it. This would be a vacation/retirement home.
2006-09-20 03:43:36 · update #1
Second homes are considered primary residences as per Fannie Mae, as long as you are more than 50 miles away, which obviously you are. That being said, there are MANY programs and investors out there that will do second homes at 100% financing, depending upon credit. Where you get into an issue is the interest rate. With it being an apartment, it will be a leasehold property, which you should be use to being in NY/NJ. Investors really do not like them a whole lot and hit you in the rate. There are sooo many brokers and mortgage companies in Florida that is is unreal! Be careful, and compare your Good Faith Estimate with your Truth in Lending. That will tell you what they are really charging for the mortgage. Look at the "amount financed" on the Truth in Lending and compare it to your actual loan amount. The difference between the APR and the Interest Rate is that of what it is REALLY costing you annually to pay on this loan. Call a major company. GMAC, Chase, Countrywide. Get estimates. Keep in mind they must pull credit in order to really give you an accurate estimate.
2006-09-27 12:04:56 · answer #1 · answered by naughty_mattress_monkey 4 · 0⤊ 0⤋
Yes, you can pay as little as 5% for downpayment. There are several programs where they can even give you a 100% financing, and now with the high inventory of houses/condos, sellers are giving contributions toward buyer's closing costs. This is the right time to buy in Miami. I'm working in real estate and with a mortgage company that can help you finding the best deal and getting you the best mortgage. I'm in the International and Relocation Department of my company. You can call me at 954-821-9109 or see my webpage: www.floridapremiumhomes.com or send me an email: ReginaAvalos@Keyes.com. I will be glad to help you.
2006-09-25 12:49:28 · answer #2 · answered by Reg 1 · 0⤊ 0⤋
No one in this forum can determine how much you will be required to place down on a property you plan to buy any place in the good ole US of A.
That is determined by your credit score. So you need to get to a mortgage "Broker" with 1 month of pay stubs, 6 months of bank statements, to include any 401k plan and profit sharing with your employer, 2 yrs each of your fed income tax and W-2 forms.
Once these documents have been recieved by the mortgage broker, he will run a credit check which will have your credit scores listed.
Now he can tell you what loan programs you are qualified for. Looking at your debts vs income to pay the debts on your credit report he can now tell you the amount of house you can buy in other words how much a lender will allow you to borrower to purchase a home.
You and the mortgage broker will select a loan that you agree that is in your best interest, to include # of years, interest rate and monthly payments.
Once these two things have been established he can now issue you a pre-approval letter (Not pre-qualified letter). Your pre-approval letter could be good from 10 days to as many as 45 or 60 days.
With the pre-approval letter you can now contact a realtor who can show you houses or property that you are qualified to purchase. Your mortgage broker might know of a realtor he works with to assist you in finding a house.
Once you have found a house the realtor will get a contract signed by you and the seller, he will also give your mortgage broker a copy so he can complete your loan application. Your mortgage broker will hire you an appraiser to get the value of the property you plan to purchase.
Once all this has been done he will also get an escrow closing agent, title company to handle to see if the property is in a transferable state.
After this he will set up a time for you to sign your loan docs which will have your interest rate, monthly payments, the number of years your loan is amortized.
Now if you want to speak of norms, it is normal for some buyers to pay 5%-20% down depending on their credit score. If you have high enough credit score you might not be required to make a down payment at all.
Don't be afraid of PMI there are many companies that don't even charge that fee any longer. Make sure you consult your mortgage broker about this payment. Sometimes 2 loans might have to be ,made to avoid this payment.
Even if you are qualified for a 100% loan you may put down as much as you want, so you decide about the amout you want to put down once your mortgage broker tell you want loan programs you are qualified for.
I hope this been of some use to you, good luck.
"FIGHT ON"
2006-09-26 19:56:23 · answer #3 · answered by Skip 6 · 0⤊ 1⤋
Glorida market is already cooling down, and by next year it may be flat. the prices aren't already increasing 25% a year, like in the last 3 years.
So if you plan on buying this studio hoping to make money in 1-2 years, make your own due dilligence, don't trust the agent.
2006-09-20 09:26:51 · answer #4 · answered by Anonymous · 0⤊ 0⤋
there are different loan packages that you can get that will allow for that. Typically 20% is required. anything less than 15 usually requires PMI.
You should shop around for different finance packages depending on your needs because they vary wildly.
here: http://www.savingslife.com/loans/step1.php
requires just some basic info about the property and how much you want down, and youll get a few competeing quotes and advice.
2006-09-20 04:00:54 · answer #5 · answered by Anonymous · 0⤊ 0⤋