Latest Down Payment Requirements

By
Mortgage and Lending with The Mortgage Experts at America's Mortgage, a Division of Cherry Creek Mortgage Co. NMLS #241555

Here are the latest down payment requirements for mortgages in the US:

 

Primary residence (your main house):

  • 3% for conventional loans
  • 3.5% for FHA loans
  • 0% for VA loans

With primary residences, you can get a gift from a relative to cover the down payment!

 

Second homes (a second home that you do not rent to others):

  • 10% for conventional loans

Investment properties (houses that you rent to others):

  • 20% for conventional loans

  

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!

 

Make sure you check out our web site:

 

www.mtgsupportservices.com

 

And check out all our great tips on our blog at:

 

http://TheMortgageExperts.blogspot.com

 

By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

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Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

Is there still a requirement that the purchaser have 5% of "their own money" in a conventional financed transaction???



 

Oct 17, 2012 08:43 PM #1
Rainmaker
130,195
Chris Thomas
The Mortgage Experts at America's Mortgage, a Division of Cherry Creek Mortgage Co. - Denver, CO

Lenn - Fannie Mae only requires a 3% down payment.  Everyone seems to think that it's 5%, but it's only 3%. 

Fannie Mae also allows the entire down payment to be a gift from a relative, employer, etc.  However, most of the lenders have underwriting overlays that say that the purchaser have at least 3% or 5% of their own money in the transaction.  GMAC Mortgage (Ally Bank) allows just 3%.  That's the lender we use for these transactions. 

You also need to be concerned with the underwriting guidelines of the mortgage insurance companies.  3% is the minimum amount that they say has to come from the borrower's own funds as well. 

So to answer your question, a purchaser only needs 3% of their own money.

Hope this helps.

Chris

Oct 17, 2012 11:58 PM #2
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Rainmaker
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Chris Thomas

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