how much do you need for a down payment on a house?

Question

looking for a house in the 100,00 to 130,000 range

Answer 1

This depends entirely upon your credit profile, type of property, and what you wish your payment to be. It's possible to pay nothing or next to nothing, in down or closing costs, to get into a house. If your credit sucks, or you want to keep your rate low to keep your payment down, figure on at least 3-5%. Nobody puts 20% down anymore, by the time you save that much you could have bought for 0% down and had your house appreciate for 20% over, refinance it as a no-cash out, and get the interest rate advantage of a low loan-to-value loan. Let the property work for you, the most important thing is getting in. The house will build equity on its own. Be focused on a purchase money mortgage, refi when you have enough equity to dump the higher interest rates assessed for high loan-to-value loans, and DO NOT take cash out to pay your consumer debt. Word on the street is FHA is going to increase their loan limits, loosen their guidelines, and require less cash down, and their rates are better than most sub-prime lenders, so I would go that route. An 80/20 can be good to avoid mortgage insurance but the 20% second mortgages usually have rates that are downright painful, even if you have good credit. Talk to a mortgage broker, mortgage bankers are not subject to the same disclosure laws that brokers are and tend to take more profit from their clients.

Answer 2

It is dependent upon how much you can afford to pay (qualify for) in mortgage payments.

Most lenders want at least 10% down, but the standard is 20%. In some cases you can get a loan for no down payment, but the interest rate is usually much higher.

In general, less down payment = higher interest rate and higher monthly payments.

Answer 3

Required down can vary, in a few cases- it can be nothing, but in the long run those are usually more expensive deals and/or distressed properties.

It depends on who provides financing and the terms. If possible you want to get in with a reliable lender that won't resell the note or play games with charges, and better lenders usually want more secure loans.

The down payment along with your credit rating is the leverage you have to help get the best interest rate, lowest points and best loan conditions. If you are able to put down 20% or more, you will be able to secure the lowest interest rates and in many cases lower some associated costs of the loan.

The smart move is the 80/20 loan.

Answer 4

Typically it is best to put as much as 20% down on a house to avoid owing too much money on it and to get the best financing rates. In reality, people usually put down only what they profited from the sale of their last house.

Answer 5

Your best bet is to save up enough for 20% down. There are mortgage companies that can work with you to allow very little or nothing down, but that is a bad idea as this means that you pay extra.

Answer 6

You dont have to put a down payment down, if you cant afford to, they usually only request a $500 "good faith" deposit which gets put in your escrow at closing (usually) If you have the funds to do so they usually suggest 20%, then you dont have to pay mortgage insurance.

Answer 7

NONE, if your credit is half decent. do you know your 3 scores?