Profile picture for mdeaver5

Conforming Loan with $417,000 Loan Amount

I was wondering if I was to purchase a home "new construction" purchase price $430,000 can I get away with only putting down 3%? on a Freddie or Fanny Conforming Loan

Also any idea what the PMI amount would be monthly?
  • April 07 2014 - Santa Clarita
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Answers (10)

5% would be the only option
  • April 08 2014
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You will need to put down 5%

  • April 08 2014
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Ted, your information seems to be accurate and valuable, however please refrain from spamming as it is against Zillow's policies. 
  • April 08 2014
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Fannie Mae and Freddie Mac stopped offering 97% loans as of November 2013.  They still offer highly qualified buyers 95% financing.  Here's a link to the article I wrote for Mortgage News Daily on the topic:
[Self-promoting hyperlink removed by Zillow moderator, see our Good Neighbor Policy]

Glad to go over your scenairo if you'd like.  I write loans nationally.
Thanks,  Ted Rood [spam/self-promotion removed by Zillow moderator, see our Good Neighbor Policy]
  • April 08 2014
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Unless the property is a Fannie Mae owned and qualified Homepath eligible property or if you are eligible for the moderate to lower income My Community Mortgage Product, otherwise you will be required to put a minimum of 5% down for Conventional Financing. As long as your loan amount is at or below $417,000 these are the down payment requirements. As far as the monthly cost of PMI, that comes down to your specific qualifications as everyone does not qualify for the exact same amount so you need to contact a Mortgage Professional directly to get a free analysis of exactly what you qualify for. If you have a decent credit score you should find that it is much lower than FHA mortgage insurance. If you have any additional questions, you are welcome to visit my profile. All the best!
  • April 08 2014
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Profile picture for JoshBarnettREIB
Discuss this with your Realtor member and Loan officer, they should have already gone over this with prior to looking at houses. 
  • April 08 2014
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You will need 5%.

  • April 08 2014
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Profile picture for JerodMayer
Your loan amount would fall under confirming limits. However, I don't know if 3% down is still an option. Used to be a homepath program, but lending has changed so much over the last year that I would encourage you to reach out to a trusted lender for specifics, and accurate info. As for Private Mortgage Insurance (PMI) that will be based on a percentage of loan amount. Also, this will vary greatly depending on if you go FHA or Conventional. There used to be a "lender paid" program whereby you could offset paying "PMI" by taking a higher interest rate. Sometimes these programs made the low-down financing more affordable. Hope this helps! Jerod Mayer of Santa Clarita [Spam and self-promoting content removed by Zillow moderator, see our Good Neighbor Policy]
  • April 07 2014
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Fannie Mae and Freddie Mac now require a minimum of 5% down. It can be all gift funds. Can you get a gift from an immediate family member?
  • April 07 2014
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Profile picture for daveskow
No ... Would Need 5% down
  • April 07 2014
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