(Closed) What do I really need to put down?

posted 8 years ago in Home
Post # 3
Member
179 posts
Blushing bee
  • Wedding: November 2010

Ooh, I’d like to know this, too.

Post # 4
Member
10366 posts
Sugar Beekeeper
  • Wedding: September 2010

@heather25: Ummmm, nowadays they are way way stricter than they used to be. I think that agent is trying to get you to bite in the hopes that you’ll “make it work” if you fall in love with a home. If you can’t afford the 20%, I really don’t think you should buy a house. If it’s that much of a stretch/it completely depletes your cash reserves, it’s not a good place to be. In fact, being house rich/cash poor is precarious at best.

Your best bet would be to actually talk to a bank about what they would be willing to offer.

Post # 5
Member
5670 posts
Bee Keeper
  • Wedding: August 2010

You need to put down at least 10% for a bank to get an insurance company to back them. Less than 10% a bank cannot lend right now because they are unable to get you PMI.

Post # 6
Member
5496 posts
Bee Keeper
  • Wedding: April 2010

I remember my husband telling me a few months back that some bank will waive the PMI, but not many. I’m not sure what is required in order for consideration/approval, etc. I believe lenders are stricter now than ever-or so I thought, so I didn’t think this was likely to be a feasable option. We decided recently not to upgrade to a single-family home for a few years until we can come up with the 20% down. We don’t want to pay PMI, either. But, I’m hoping there is a way around it like you do, so that we can upgrade sooner!

Post # 7
Member
2792 posts
Sugar bee
  • Wedding: May 2011

If you qualify for an FHA loan, it only requires 3.5% down 🙂

Post # 9
Member
3176 posts
Sugar bee
  • Wedding: May 2011

My friend just bought her house and they only put 5% down. I know because I was jealous she was able to buy a house and asked her how they managed to save for the downpayment. She told me it was easy because they only paid 7k.

Post # 10
Member
3176 posts
Sugar bee
  • Wedding: May 2011

@heather25: Just saw that, I don’t know what that means so ignore my post 🙂

Post # 12
Member
3942 posts
Honey bee

We just bought our house and I never heard of it. Although I am sure in other areas there could be banks that offer it as a promotion. Have you been pre-qualified yet? I would get quotes from a couple of banks that youre familiar with and talk to them about it.

We put down way less than 20% and to be honest, the PMI doesn’t bother me that much. Our mortagage is the exact same amount as our rent was. Plus, when I see our mortgage statement each month and see how LITTLE goes towards the principle and how much goes to the interest, I forget abou the PMI anyways haha.

Post # 13
Member
3762 posts
Honey bee
  • Wedding: May 2010

For a traditional loan I was told I had to have 10% down with less than 5% of that being a gift. 

For an FHA loan I would need 3.5% down (I don’t think any gift restrictions). 

I dont’ think there is any way around PMI if you put down less than that.  The best way around that would be if you paid less than your house is worth and you basically immediately get it reappriased (traditional loan) or refinanced (FHA loan). 

The only other thing that I can think that maybe would skip the PMI would be because it is a rural land loan through the government.  My friend just did this and only had to put $4k down but I don’t know if she has to pay PMI or not. 

Post # 15
Member
1205 posts
Bumble bee
  • Wedding: December 2011

We’re putting 20% but I know you can get away with less if you qualify for the FHA loan.  To me…it is enough of a pain getting a regular mortgage; I think the rates also differ based on how much you can put down.  If we came up with an extra 5% we could have gotten a better rate, but we’re pretty much scraping the bottom of the barrel as it is.  Alas.

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