2006-09-24 16:15:27 · 8 answers · asked by n_hall_22 3 in Business & Finance ➔ Renting & Real Estate
That depends on several things.
1) Your credit
2) The amount of money borrowed
3) The appraised value of the home
4) The length of the loan
5) The purpose of the property (Primary residence vs investment property)
6) The neighborhood (are property values going up or are they sinking in your area)
7) The lenders policies (some will loan up to 120% of value, others will only loan 80%
8) Any "special" circumstances such as a VA Loan.
In general, if you are buying a home for much less than the appraised market value (instant equity), and you have good credit, you will probably need little to no down payment.
if you are buying it at or above market value, or your credit is bad, you will probably need a substantial down payment.
There is really no way to answer this one without way more information.
2006-09-24 16:21:40 · answer #1 · answered by Jim R 5 · 1⤊ 1⤋
NO!!!!!! Depending upon your credit history, debt ratio, income, etc. you can get 100% financing and your Realtor can even write the contract to wrap up the closing costs within the body of the loan so that you don't need to bring any money to the closing table. You will have to make a good faith deposit when you find the right house but realize this is a deposit that gets refunded to you at the closing table. The Good Faith Deposit simply binds the contract and shows the sellers that you are serious about buying the property.
I have helped dozens of people buy houses with no money down and inform them about government agencies that offer down payment assistance too (often in the form of grants) designed for lower income people/families.
2006-09-25 01:02:06 · answer #2 · answered by linkus86 7 · 0⤊ 0⤋
As housing market continues to slump, if you don't plan to delay your plan, please interview several and pick a good realtor or agent.
Bad ones will talk you into buying the largest property at your credit limit. Good ones will find you a good deal (Sellers are offering discount and incentives now).
Try to stay away from Adjustable Mortgage, because 30 year fix mortgage rate is very low right now. There is no reason to use Adjustable loans except fatter commission for loan agents.
Interests only loans are not good iether. Mortgage payment consists of two parts: interests and principal. Interests are like rent, which doesn't add to the equity to your house. It simply disappear as your pay it. If you want to use interests only loans, might as well rent, especially during market downturn, because housing price won't appreciate.
Finally, for tax benefits, talk to your CPA or tax accountant. Do not consult finance with realtors or agents. They get commissions when you sign the check!
Good luck!
This article gives you tips on negotiation:
http://biz.yahoo.com/brn/060909/19463.html
Articles about current market:
http://money.cnn.com/2006/09/08/real_estate/caught_in_the_bubble/index.htm?postversion=2006090814
http://money.cnn.com/2006/09/05/real_estate/Ofheo_home_prices/index.htm?postversion=2006090514
2006-09-25 03:44:21 · answer #3 · answered by Price is what you pay for value. 3 · 0⤊ 0⤋
Most do require some sort of down payment,depending on credit.
2006-09-24 23:23:03 · answer #4 · answered by beez224 2 · 0⤊ 0⤋
Most of them do, but some people pay the closing cost or the bank/lender will add that into the payment.
2006-09-24 23:23:21 · answer #5 · answered by cfoxwell101 2 · 0⤊ 0⤋
Although you can get 100% financing, most sellers require a deposit in case you flake or your financing falls through.
Regards
2006-09-24 23:32:05 · answer #6 · answered by Anonymous · 0⤊ 0⤋
no, must dont. 580 or above fico on single family residents, no problem 100% financing
cjkloanguy@yahoo.com
2006-09-25 15:07:39 · answer #7 · answered by cjkloanguy@yahoo.com 2 · 0⤊ 0⤋
yes, but there are plenty of lenders that don't
2006-09-24 23:18:10 · answer #8 · answered by T C 6 · 0⤊ 0⤋