Profile picture for LHairston

Down payment on home

When looking at a home on-line there is always financing information available.  I have found that most sites have a downpayment amount of 20% when figuring the payment amount.  Are they saying that that is the amount "required" to purchase the home or will those of us with less funds be considered for the purchase (5% down)?

  • April 22 2010 - Locust Grove
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (6)

Best Answer

Typically the 20% down quote allows the lender to post the lowest rate, with the least unknown factors. Terms can change with LTV and credit score.

But yes you should be able to qualify for the property with other loan terms. It is just that the lender is then not held to the low advertised rate.

Zillow procedures guard against quotes that are based on unrealistic terms that might offer the lender a way out of honoring the advertised terms.
  • April 22 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

You should contact a reputable lender, who will be able to provide you with detailed information on what to expect and the requirements involved.
  • February 17 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

You may also be able to qualify for a USDA loan which is a 100% loan utilized in rural areas.  A mortgage broker would be able to fill you in on the details and also see if you qualify.
  • March 20 2011
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

You can purchase a home for less than 20% down. FHA lets you come in with as little as 3.5%, and there are also some conventional programs available that allow 5% down.  However, these programs typically require a minimum credit score, very stable employment history with W2 documentation, etc.  The interest rates are usually a little bit higher as well.  I would suggest talking to your bank or a mortgage broker to find out which program makes the most sense for you.

Jon Lichterman
Provincity, Inc.
  • August 20 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Open Home Mortgage
FHA loans require only 3.5% down, and if you purchase a HUD home, you may only be required to put $100 down.
Contact a reputable lender (on Zillow, which we are a partner with) and get pre-approved, that will let you know what to expect.
Grant
  • August 20 2010
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

they usually are there for practical purpose or ideal, you should be able to change the amount of down payment on most of these calculators.

Tha bank, mortgage company lender or type of program, FHA, Conv, etc. will determine how much downpayment you actually need
  • April 22 2010
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.