All about the down payment

By
Mortgage and Lending with Veterans United Home Loans NMLS #1907 NMLS# 261072

When obtaining a home loan or mortgage, most loans require a down payment-

FHA requires 3.5% down

VHDA is a state program that allows you to finance the 3.5% down payment for FHA loans

VA loans (military members) have a $0 down payment requirement

Conventional loans usually requires 20% down

Investment property loans require 20% at least down

 

Sources for down payments:

Checking/Savings account

401k loans

Vehicle equity loans

Other property equity loans (jewelry, art, etc.)

***Not allowed from unsecured funds- credit cards, unsecured/signature loans

Gifts from Churches / Non-profit organizations / Employers

Gifts or loans from family members

 

Interest Abatement Features:

If a Seller is willing to give maximun Closing Cost Assistance, it should cover all closing costs and pay the first 6 months of interest on the mortgage payment. This allows you to build your savings back up, or repay car, 401k, or family loans.

Comments (1)

Jody Lautenbach
Century 21 Premier Associates - Pella, IA

Sometimes you just have to save to buy a home - the more down the better off you will be!

May 24, 2010 03:26 AM