How much money do I need

Buying: How Much Do I Need?

Often I find when talking with prospective buyers or every day people, they are shocked to learn that you DO NOT need 20% down to buy a home.

I’m in the business day to day and tend to forget that what I know is not common knowledge. This post is to break down for those of you who have never even contemplated buying a home because you have already denied yourself.  Do me this favor….give me a chance to at least point you in the right direction if I can’t qualify you. My brother who is also a broker, jokes “Valli doesn’t deny loans, there’s no loan she can’t do.” Unfortunately, I had to deny a loan last week, it does happen, but it is the only one I’ve had to deny in the last 2 years. So, the odds are in your favor.

 

Quick Yes or No quiz:

1⃣ Have you foreclosed on a home within the last year?

2⃣  Have you filed Bankruptcy within the last year?

3⃣ Are you unemployed?

 

If you said yes to any of those 3, it’s likely your odds are not so good. But, if you passed the test, let’s talk about what else you need to do:
In most cases, you will need 3.5% as a down payment. That is 3.5% of the sales price. So, if you buy a $200,000 home that is $7,000. But you don’t need it right away. You only need your deposit right away and that is negotiable. You need the full amount 30 days after your offer has been accepted. Most people put $1000-$2000 as a down payment and that goes toward the balance of your down payment.   A good lender will pay your closing costs so $7,000 in 30 days and you’re in. The best part about it is you skip a month in payment. IF WE CLOSE IN APRIL, THE FIRST PAYMENT ISN’T DUE UNTIL JUNE 1st. And even then you have a 15 day grace period to pay without a late charge. So no rent or mortgage for over 30 days. This would be a good option for those of you between 560 and 620 credit scores.
If you have above a 640 mid credit score, I can get you a small grant for the 3% and you would only pay .5% toward the downpayment ($1,000)….if that isn’t enticing, I’m not sure what is.
Let’s say you are know a little more about loans and know that if you don’t put 20% down you will have to pay PMI. What if I told you that is not the truth any longer?  We offer new products with just 3% down no PMI but you must have slightly higher credit than the above scenario. The more you are able to use as a down payment, the lower your rate but always no PMI. I need a 640 credit score for this program but the payment is always lower than the options above. It’s also a perfect option for a condo that may not be FHA backed. And again, all closing costs paid.
So, what are you waiting for? You owe it to yourself and your family to see what you can qualify for and what way we need to do to assist in your down payment. Down payment programs are available per county or city as well.