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What is the preferred down payment for a house? Is it better to put less if i can get a loan or is it advised to put 20% in this economy?

by DorothySklar from Weston, Massachusetts. Aug 14th 2010 Reply


Gregorio Denny (GVDenny)
#258 ranked lender in California - 380 contributions

The choice is yours based on your goals. You can put as little as 3.5% down with an FHA loan.

Aug 15th 2010
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Akali Dennie (adennie)
#54 ranked lender in Florida - 196 contributions

If you put less than 20% down, you will have to pay mortgage insurance. Other than that, it is certainly up to you. adennie@fmbranch.com

Aug 15th 2010
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Brett Pehrson (brettpehrson)
#19 ranked lender in Utah - 228 contributions

It depends on your goals and circumstances. With rates as low as they are, personally, I believe in keeping your liquid assets and making them work for you in other ways. If nothing else, you should at least keep 6-8 months reserves (ongoing obligation payments) in the bank for a "rainy day," especially in this economy. I hate to see people put all their savings into a down payment for a house and then not be able to make their payment if something happens a few months down the road.

Aug 15th 2010
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Richard Woodward (RichardWoodward)
#39 ranked lender in Texas - 106 contributions

I would suggest putting less down if it fits into your goals. With rates at historic lows my thoughts are to take advantage of leveraging your money. Depending on your circumstances, it could possibly be better to pay off debt or contribute to an IRA to offset taxes. Every case is unique so I would suggest you speak with a mortgage professional that discusses your long term goals and designs a loan for you.

Aug 16th 2010
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Rudi Hofmann (CaPortfolioLoans)
#282 ranked lender in California - 380 contributions

It would be your preference, along with the minimum down payment required for your loan amount, property type and location. Minimums on a single family owner occupied:FHA 3.5%Conforming 5%Super Conforming 10%Jumbo to $2MM 20%We will probably see another downward trend to residential property. But, anything less than 20% down on 30 F will need Mortgage Insurance. FHA requires MI on all 30F loans regardless of how big of a down payment. .... Happy funding, Rudi

Aug 16th 2010
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Ron Wohlfarth (RonWohlfarth)
#34 ranked lender in New Jersey - 65 contributions

With the rates that are available today, the Minimum down is the better choice...Try an obtain the FHA Mortgage...Ron856-853-1234e/m Money@RonWohlfarth.comweb www.WoodburyMoney.com

Aug 18th 2010
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