looks nice, if you don't mind me asking, how big of a down payment for it?
Well, I don’t want to hijack BuffyGirls’ thread, but it depends on the type of loan you’re getting.
A conventional loan will require you to put 20% down, which is a lot of money. However, in the money grubbing days of the housing boom, banks and lenders were approving no money down loans since the money was flowing. When the music stopped, and interest rates on adjustable rate loans went up and housing values were underwater, people who didn’t put any money down simply walked away from their homes…which from a pragmatic point of view, made sense.
You can get an FHA loan which will require only 3.5% down…but will require that you pay PMI (private mortgage insurance), which you’ll have to pay until the total of your PMI payments reach the 20% threshold. Unfortunately, recent FHA regulation changes now require that PMI be paid for the life of an FHA loan.
If you’re a veteran and are purchasing with a VA loan, you are not required to pay PMI.
Now, there are some ways to get around the down payment. Some lenders will offer a package loan, in which your first loan is 20% of your purchase price and would be used as the down payment. The second loan would be for the remainder of your mortgage.
Also, if you're looking to buy a condo, bu advised that it is very hard to get approved to get an FHA loan for a condo.
Very happy for the both of you!
