This will be our first house and our credit is a bit iffy. I am working on trying to improve it and also save for a deposit. Houses in my area cost between $250,000 to $300,000 for a 3-bedroom.
2006-10-18 00:53:20 · 6 answers · asked by tiffani_90 2 in Home & Garden ➔ Other - Home & Garden
There are two issues to consider. The first is the fact that you can buy a house with no downpayment whatsoever. Furthermore, closing costs can be rolled up into the mortgage eliminating the need for any cash at closing. These loans can be very expensive in the long run because you end up paying interest on the closing costs for the term of the loan. Best advice is to seek the help of a good real estate agent. They will have knowledge of first time homebuyers programs in your area, and can walk you through the process.
The second issue is your "iffy" credit. If you have old debts that have not been settled, they will show up in your credit history. You can bet that the mortgage company will require that they be satisfied before you are approved for a loan. They go to great lengths to ensure that you are in the best possible position to repay your mortgage. The last thing they want is for one of your old creditors to force you into foreclosure after you have bought a home.
Good luck with your home purchase.
2006-10-21 21:38:36 · answer #1 · answered by exbuilder 7 · 9⤊ 0⤋
Generally you should put down 20% in order to avoid having to pay PMI (primary mortgage insurance) every month on top of your mortgage payment. However, if you don't have 20% most lenders these days can get creative and offer you two mortgages, one at a higher interest rate like 9% for example, in order to make it appear as if you had the 20%, thus avoiding PMI. It's all a racket against the homeowner anyway, so try to get the 20% together, even if family has to give you a hand.
2006-10-18 08:01:58 · answer #2 · answered by nido_tr3s 5 · 0⤊ 0⤋
We paid 5% down payment
2006-10-18 12:39:23 · answer #3 · answered by chopperlily 2 · 0⤊ 0⤋
That would depend on what type of financing you are trying to get.....
There are no down payment financing options available, depending on where you live ......
You really need to educate yourself before you sign any financial papers......
2006-10-18 08:06:06 · answer #4 · answered by jrsgurl62 4 · 0⤊ 0⤋
15%
2006-10-18 07:56:13 · answer #5 · answered by Dr Dee 7 · 0⤊ 1⤋
They say that 10% of the total cost is what is "recommended".
2006-10-18 07:56:01 · answer #6 · answered by Anonymous · 0⤊ 1⤋