How Much Cash do I need to Buy a Home?

How Much Cash do I need to Buy a Home?

You won't be homeless!  It's CAN be cheaper to buy a home than rent an apartment.  You don't have to break the bank to buy a home.

If you are getting a VA, or Veterans Administration, loan you can get a loan for 100% of the purchase price of your home. 

If the seller agrees to contribute money for your closing costs you could get into a home for less than you can rent an apartment. 

You will need upfront cash for the survey, elevation certificate, home inspection and insurance.  You can get that money back from the seller at closing if it's written into your contract.

If you are getting an FHA or an FHA 203K loan on a Key West property you will need 3.5% of the final loan amount.  An FHA 203K loan is a home renovation loan.  An FHA 203K loan can help you get some quick equity if you get the right property at the right price. 

FHA Loan Cash Requirements

If the puchase price is $150,000 you need $5,250 cash down.

If the purchase price is $200,000 you need $7,000 cash down.

If the purchase price is $250,000 you need $8,750 cash down.

If the purchase price is $300,000 you need $10,500 cash down.

You also need closing costs if you the seller does not agree to contribute to your closing costs. 

Closing costs (documentary stamp tax, intangible tax, recording costs, closing fees, loan costs) and pre paid expenses (insurance, survey, elevation certificate, home inspection) are between 2% and 3% of the purchase price depending upon the purchase price and date that you close.   If the property is less expensive some fixed costs like the survey and elevation certificate ($900) are a larger percentage of the purchase price.  If you close in the middle of the year the seller will give you 1/2 of the property taxes.

Real estate is selling quick so start searching for real estate on my web site now!