How Much Do I Need?

How much do I need?” is the second article of my series title The First Timer. While there are a few specific loan types that allow 100% financing, they will be covered at another time. Those loan types are USDA, VA, 80/20 or 80/10/10 loans. It is important to note that although they allow 100% financing, it doesn’t mean you can’t have any money and get into a home. There are certain criteria you must meet and certain asset levels you must be at.

Down Payment: This is one of my favorite questions. The bare minimum for FHA and Conventional loans is 3.5% of the sale price to put down. This is your skin in the game. While 3.5% is the minimum down, mortgage insurance will be required and your rate will be higher to reflect the increased risk. While you have to pay mortgage insurance whether you…

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