How Much is my down payment ep 10

anthony patton

How much down payment do I need? ?

Great question I hear it all the time… and the answer… it depends….

Different types of loans require different types of down payments…

USDA loans are United State Dept of Agriculture has a loan called rural development for people that want to buy houses outside of the urban and suburban areas.. these loans don’t require a down payment. The area is limited and is set each year by the USDA… they have a map on their website that allows you to see where you can buy a house using USDA and where you can’t….

VA Loans are loans for Veterans… they don’t require a down payment up to $484,350 and then above that there is a strange calculation about how much you need to put down….

Conventional loans are a mixed bag… on some loans you can put down as little as 3% of the sales price… so.. 6000 on a 200,000 purchase price… you can also choose 5% 10% 15% 20% or any other combination… there are pros and cons with all these figures. The major pro/con is mortgage insurance.

Mortgage insurance is the insurance you pay to protect the mortgage company in case you don’t pay for the mortgage. The cost of mortgage insurance depends on the down payment and your credit score…. 20% down and your cost is zero….

10 % down has a higher cost than 15% down and 5 down has a higher cost than 10% down… but when your mortgage gets paid down or the value goes up and you reach 80% loan to value…. Then the mortgage insurance goes away…

750 credit score has a cheaper mortgage insurance cost than a 650 credit score,….

Typically if you have less than 700 credit score… or less than 10% down we may need to look at an FHA loan because the FHA loan mortgage insurance will be cheaper than convention mortgage insurance

FHA has its own version of mortgage insurance and while it is cheaper in some cases… the mortgage insurance does not go away like on conventional mortgage…

So which one is best for you… it depends…. This is why you need an expert advisor like me to help you compare… we have several tools to help you compare and make the best decision for you… this is why you need an expert advisor over some do it yourself online mortgage company that does not care about you and your family…

We can also look at a list of down payment assistance programs to see if you qualify for them and if they are a right fit for you.

This is why our clients have financial peace and can sleep at night and why other people are worried all through the home buying process..

I hope this helps… we are here for you all along the journey… if you want proof our reviews are online… or I can send you a list of happy customers…

Don’t worry we have this… get some sleep….

www.anthonypatton.loan

www.inspiredbuyrealestate.com

214-226-0885