Buying and financing a new home can be a daunting task and many of us turn to friends and family for advice. But the only experts in the mortgage field….are the experts in the mortgage field! Friends and family might not be the experts they think they are. The mortgage guidelines and interest rates are changing so frequently that unless someone is in the mortgage field as a full-time job, you should only take advice from a mortgage professional. Read the rest of this entry »
FHA, known as the Federal Housing Administration, offers a mortgage loan requiring borrowers to have mortgage insurance on the loan. The FHA loan originated during the great depression and has contributed to the growth of the housing market ever since. Read the rest of this entry »
I sometimes have a client tell me they are getting their down payment to buy a new home from some interesting sources. I have had client sell an antique guitar collection on eBay, sell a car, get cash from a suitcase under their bed, and sell an art collection, among many more interesting stories. However, homebuyers need to be aware of what is allowed and what is not allowed. Some sources of down payment are not allowed. Read the rest of this entry »
There is a requirement on Conventional loans to have a certain amount of your down payment come from your own hard earned savings. Not only do you need a certain minimum down payment for different types of Conventional loans, but you also need to make sure a certain amount comes from your own money, and not a gift, or borrowed funds, unless they are secured against an asset, like real estate or a stock account.
On a Conforming loan, which are loans that go up to $417,000, the minimum down payment is 5% down. Read the rest of this entry »
It seems mortgage rules change frequently, below is the latest on down payment requirements. (UPDATED 11-04-2018)
For a primary residence you need a down payment of: Read the rest of this entry »