Zillow Advice: Home Buying - I have heard you now need a 20% down payment to buy, is this true?

It depends what you're trying ...

Tue, 23 Jun 2009 21:17:00 GMT

It depends what you're trying to purchase.
For investment properties you need 25% to 50% down to qualify for a loan.
For owner occupied properties you need to put 3% minimum as down payment with fha government loan.
If you're doing a stated loan, you will need to put more than 40% down, I'm actualt not sure if banks can still do stated loans because I don't do them anymore.
If you want to avoid mortgage insurance than you will need to put minimum 20% down, maybe that's what you're referring to.

Goodluck
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bob, it may be hard for 1st ...

Tue, 23 Jun 2009 02:39:00 GMT

bob, it may be hard for 1st time home buyers? yeah, it should be. thats why we are in the mess we are in now beacause we made it too easy to buy homes.

You heard wrong, from my ...

Mon, 22 Jun 2009 05:37:00 GMT

You heard wrong, from my understanding the largest percentage of current loans are F.H.A. insured(3.5% down)..

its actually not a lot to ...

Mon, 22 Jun 2009 05:29:00 GMT

its actually not a lot to ask, bob. its the way it was always done. the entire concept of credit should be that you pay a little more to get what you want a little sooner. PMI +ARM+30year loan = a big fat scam vs home buyers 0.02

youll end up paying 3 times what you actually borrow and most of it is up in smoke

Walty, that is a lot to ask ...

Mon, 22 Jun 2009 04:18:00 GMT

Walty, that is a lot to ask for with first time home buyers....and that is why we have insurance.

no but it should be 20% down ...

Mon, 22 Jun 2009 03:49:00 GMT

no but it should be 20% down to buy with any loan IMHO.

You will need 20% down if ...

Mon, 22 Jun 2009 03:47:00 GMT

You will need 20% down if you want to avoid paying for mortgage insurance on a Conventional loan. Mortgage insurance protects the lender against loan default.. Mortgage Insurance can be cancelled once the loan reaches 80% loan to value thru normal amortization or property appreciation.

FHA loans can be made to qualifying borrowers wth a 3.5% down payment. The down payment can come from the borrower, a relative, or a HUD approved down payment assistance program.

You should talk to an experience loan officer about the right program for you.

FHA has programs that help ...

Sun, 21 Jun 2009 22:12:00 GMT

FHA has programs that help with a downpayment which can be 3.5% but you should start to try get some form of a preapproval letter for a loan.

This will help you save time when you start your search for a home and show the Seller that you are a serious Buyer.

0 down in some areas using ...

Sun, 21 Jun 2009 21:48:00 GMT

0 down in some areas using FDA program, or buying a Fannie Mae house, 3.5% down for FHA loans, some states like WA have a state bond program for 1st timers that makes it almost 0 down. I currently have a client using this, and they need $1000 out of pocket. MOst investment loans are 20% and up to get the best rates.

My advice: Consult a reputable lender and get thos questions answered properly for your area!

FHA will loan with 3.5% down ...

Sun, 21 Jun 2009 20:09:00 GMT

FHA will loan with 3.5% down payment.