Forgotten Your Password?

Need to Register?

Question Icon

How much down payment is recommended when buying a home?

by bladeshhh785 from Palm Springs, California. Jun 26th 2017 Reply


Mike Cuervo (mike@loansbynorthstar.com)
#1308 ranked lender in California - 7 contributions

A primary owner occupied home can be as little as 3% down. A 2nd home can be as little as 10% and investment usually is 20% or more down. What governs the down payment is your debt to income ratio or qualifying ratios. Under 40% is recommended. For more info please ask for Mike at (714) 273-1083

Jun 26th 2017
1
0
William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,008 contributions

The least amount possible. Most financial planners will tell you that "Cash is King".. the more you can keep in your bank account the better.. There are some benefits of putting more down.. if you put 20% or more down, you can avoid mortgage insurance.. but if you put 3 to 5 percent down.. and wait 2 to 4 years, you would most likely have enough equity to refinance and get the MI removed.. The reality is that applying extra funds or putting more down than required on a home does not pass the secure financial investment test.. If you put 40% down, and paid on your loan for 10 years, and now you have hundreds of thousands in equity.. but something happened and now you cannot afford to make the payments.. how many payments could you miss before the lender initiates foreclosure? 2,, 3 maybe?? You put much more down than required and payed on time for 10 years, and after a setback, you could potentially lose your home for missing 2 or 3 payments..Not Good!.. Right? But to answer your question. VA is 100% financing,, but you must have VA benefits available to you. . USDA is 100% financing also, but the home must be in a defined USDA area (usually rural).. Conventional requires 3% if you are a first time home buyer, otherwise, it's 5% minimum.. FHA requires 3.5% down.. I'd be glad to help you and promise to give you the best financial and mortgage advise for your scenario. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / RPM Mortgage NMLS 1541014 / AZMB0121893

Jun 26th 2017
1
0
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,560 contributions

Recommended? At least 20% in my opinion. This is where you get the most bang for your buck in terms of loan options, and you no longer have to consider dealing with mortgage insurance.

Jun 27th 2017
0
0
Larry Gray (lgray_312_247)
#565 ranked lender in California - 1,127 contributions

I like doing our first time home buyer loan with the 3% down minimum requirement that most lenders often do not do, probably because there is a 3% down standard conventional loan. and they are not accustomed to doing it and/or not trained in doing the loan. However, the rate can be much better, and you only need not have owned a home for at least 3 years to be considered a first time home buyer. I also like to provide down payment assistance for would be home buyers who have not been able to save sufficiently due to high rents, etc. but can easily afford the monthly payments for the home purchase they seek. You can reach me via my profile, and would be happy to work up the numbers for you to compare.

Jun 28th 2017
0
0
Subscribe to our news feed.