Home : Blogs : Caroline Tsou Chai : Caroline's Blog

How Much Should I Put Down For A Home?

Due to the mortgage meltdown crisis, lenders are very tight on issuing loans. Therefore, in order to secure a loan, it is best to put at least 10% down payment when you purchase a new home in today's market.

Posted by Caroline Tsou Chai on 05/12/2008 11:29 AM

Comments (5)

buyers

This post has been included in California Information San Bernardino County, CA Information Chino Hills, CA Information

5 Comments on How Much Should I Put Down For A Home?

MAY

2008

Many first time home buyers are challenged with putting down 20% in our market, as I'm sure they are in yours. PMI then becomes an issue. Whether it's a condo? Whether it's in a declining market?

The sure thing is to send your buyers to a local lender for prequalification prior to putting them in your car.

Some FHA programs are still allowing 5% down, and some lenders for specific properties are requiring more than 20%, so it really is property and buyer specific. You are right that 20% is a good "average".

I think it comes down to what they can afford to pay monthly after there down payment.

Caroline -

Here is the hot water we find ourselves in now - many haven't saved 20% for the down payment, or have the equity in their current home to swing it.

PMI is an option for qualified buyers with less than 20% down - but those with less-than-perfect credit, or those buying in zip codes the lender or PMI Company feel are "declining" may have to come up with some additional last-minute money.

Condos pose their own problems, as their financials are being more heavily scrutinized these days as well.

Tread carefully - but don't throw away anything you don't need to!

DEAN & DEAN'S TEAM CHICAGO

Wouldn't it be great if all our buyers could put 20% down. It just seems that so many times, they don't have that much money saved, especially with first time home buyers. Also, we see that buyers who have to sell a home first do not have the money down, since all their money is tied up in their houses. Unfortunately we very rarely get buyers to put 20% DOWN.

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?