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Answers (3)
- Bob Willett, "SacRELender"
- Contributions:194
Great explanation Brian! It really is that simple, but the really important thing is that you agent – this is the person that works for YOU – really need to be sharp enough to negotiate a deal for you that will work. Make sure that your Realtor (make sure that they are a Realtor and not just a licensed agent; there is a difference) and your lender are on the same page. If your lender and Realtor are both professional and work together you should be fine.
- Vanessa Rojas, "VanessaRojas1"
- Contributions:56
- Brian Goetz, "bri_gets"
- Contributions:295
FHA loans require a down payment of 3.5% of the sales price. On a $150,000 purchase, that would be $5250. This money can be your own money OR they will allow for a gift from a family member for the down payment.
I would estimate the total closing costs to be around 3-4% of the sales price. You can pay for these in different ways. You can either pay this on your own, negotiate with the seller to have them give you a credit for closing costs, or get a credit from your lender to cover them.
The lowest 30 year fixed rate is 3.75%, but if you take a rate of 4.25% your monthly payment would not be that much more and you would be able to get a credit from your lender to cover the closing costs. I am guessing that this is how your friends were able to buy a similar priced home with only $5k out of their pocket.
Keep saving your money so you have options come summertime. It is important to get a Realtor who has good negotiating skills (to try to get the seller to pay the closing costs) and a knowledgable lender who can break down your options and structure the deal to fit your scenario.
Good luck!
I would estimate the total closing costs to be around 3-4% of the sales price. You can pay for these in different ways. You can either pay this on your own, negotiate with the seller to have them give you a credit for closing costs, or get a credit from your lender to cover them.
The lowest 30 year fixed rate is 3.75%, but if you take a rate of 4.25% your monthly payment would not be that much more and you would be able to get a credit from your lender to cover the closing costs. I am guessing that this is how your friends were able to buy a similar priced home with only $5k out of their pocket.
Keep saving your money so you have options come summertime. It is important to get a Realtor who has good negotiating skills (to try to get the seller to pay the closing costs) and a knowledgable lender who can break down your options and structure the deal to fit your scenario.
Good luck!
Needing some FHA help...
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