Do lenders still lend up to 90%, with buyer putting down only 10% if you qualify, of course

This is in California where people are outbidding daily and paying cash.. Do we have a chance to buy a house with 10%?

  • April 23 2014 - San Rafael
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Answers (14)

Yes they do. I just closed on a property where the buyers had 10% for the down.
  • April 26 2014
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Profile picture for Maynard Gottlieb
You will not have an issue finding lenders to do what you are asking for, I am sure you have already solved the issue but if you are still looking for someone I can send you to our preferred zillow lender.
  • April 26 2014
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Yes you can.  I'm getting buyers into homes with less than 10% down, some doing FHA 3.5% and some doing 5% conventional.

  • April 26 2014
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The short answer is "yes."  The long answer is that it will depend on your overall scenario.  Contact one of the lenders here on Zillow to get a detailed quote based on your scenario.  I'd be happy to help.

Best wishes,

Robert
  • April 25 2014
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Yes! There are many different options with 10% down, even Jumbo loans. When submitting your offers, you just want to ensure that the preapproval letter from your lender specifies it is a 10% down transaction. I wouldn't think it would hurt you in getting an offer accepted, at least it shouldn't. Especially if you are doing Conventional financing, which seems to be the preferred financing type with a large amount of sellers over government financing. In any event, you should contact a Mortgage Professional to get fully preapproved and get a free analysis of exactly what you qualify for and which loan program will make the most sense for you! My contact information is available on my Profile if you have any additional questions or need further assistance. All the best!
  • April 24 2014
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Yes, there are homes closing with mortgages that have as little as 3.5%. It may not be the down payments as much as the asking price. Some offers can be above the asking price which is why it may seem like you are being outbid. On the other hand, are you pre-approved? Most sellers will not take offers seriously unless they have a pre-approval. So if you do not have one, then I suggest you connect with a loan officer as soon as you can. The best thing for you to do is to speak with a knowledgeable lender to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!
  • April 24 2014
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Profile picture for wetdawgs
The problem in the Bay Area at the moment is that people are offering considerably more than asking price,  and the property may not appraise at the offer price.   (Often sellers will not accept an appraisal contingency).   So, if you are targeting 10% down and the property appraises at 90% of your offer price, you will be out of luck.

So, will it be possible?   Maybe.  I suspect San Rafael is a little less crazy than the peninsula, but you should discuss this with your agent for a reality check.

Just today at lunch I heard of colleague's kid with 50% down, bid 10% more than asking price and offer was not the winner.  Crazy, yup, hopefully San Rafael is still sensible.

 
  • April 23 2014
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Yes, there are transactions closing with 10% down. I believe if your offer is submitted with a loan approval and bank statements to document your liquid assets, you'll have a better chance.
  • April 23 2014
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Profile picture for GMerino

Even if you have a loan with out any conditions, California is a tough place to be a buyer!  Think about it, if you were selling a car and you had an offer that was $5,000 over the asking price all cash in 15 days - I assume that you would take that offer. 

I think if you have your loan approval with out any conditions other than the appraisal and title work you may have the upper hand over someone that is barely getting into the market and still needing to find a loan.  What is important to have in California is a strong Real Estate Agent to represent you and staying on top of any new listings coming on the market.  If you realtor knows what you like and you trust your realtor have them put in the offer!

Overall, you are in a tough market . . .

  • April 23 2014
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Agree with Ray should be attainable as long as the purchase price isn't over 1,000,000.   The best way to combat the cash offers is a thorouhgly underwritten and conditionally approved commitment from bank/lender where the only conditions left when you offer are purchase contract, title report and appraisal.

Often you can do a 17 or 21 day escrow on your purchase offer and be in position to breeze through to closing which is what the seller will be most concerned with. 
  • April 23 2014
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Profile picture for CA Direct Lending
Depending on the amount of your purchase, 10% down is very prevalent in California.  A couple of things you can do to help compete against cash offers is to go with a lender who can close your loan in three weeks. 

You can also apply with us and get fully approved by an underwriter so that on your next offer, you can make one with no loan contingency. 

If you'd like us to help or if you have any other questions, let me know!
  • April 23 2014
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There is a wide selection of down payment options for qualified borrowers.  With FHA, 3.5% is the minimum down payment, and Conventional is 5%. 

For well-qualified borrowers with strong credit scores, there are great mortgage insurance products such as "Single Premium Mortgage Insurance" where you can pay a one-time premium upfront and have no monthly mortgage insurance for the life of the loan.

Make sure you consult with an experienced lender in your area to know what your options are.

I hope you found this helpful!
  • April 23 2014
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YES! I just got an offer with only 5% down, but 10% is the new 20%.
If one lender does not (which I highly doubt), ask another. Not sure where you are located, but if you need the name of a great lender, I would happily give you one.
Good luck on the home search! And when placing an offer, I usually say give $1000 more than asking. It makes the sellers happy.
  • April 23 2014
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You can purchase with very minimal funds down depending on the program.

It can be anywhere from 0-5% down as a minimum. Please reach out to me as I would love to assist.
  • April 23 2014
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