If you are buying conventionally, the down payment depends on whether you are buying a personal residence, or rental property, your credit score, and perhaps even the type of loan that you are obtaining. You can find many low down or nothing down loans, but there are always variables, like the interest rate, points, etc. Best of Success!
Local lenders tend to be more flexible than Big bank lenders. My bank will do a 85%LTV at 6% (for 20 year loan) with no mortgage insurance and will allow seller second mortgages. If you are willing to pay the increase in rate (7-8% or more) I have seen 95% LTV if you have the credit. Look at the lenders tab above. Closing cost tend to be big on that type of loan (3000 or more as opposed to my loan with closing costs of less than 2000)
As stated in other replies, quite dependent upon your goals, credit...my exp. has contributed to a strategy of 80% financing (LTV or LTSP), 30 yrs, no ARMs, recently 7.50%, and generally no buy downs...obvously I'm pursuing buy & hold...this will typically maximize ROE over the long-haul, building equity, while minimizing risk as well as cost of capital...the flippers will scoff, but I want to continue to buy for many years to come and don't believe IRAs nor 401ks can outperform good rental property when factoring in leverage, inflation & taxes. Best of luck.
Anywhere from the seller giving you money at closing to 50% down. Yes, it's usually always negotiable.[ Edited by Raj211 on Date 10/21/2003 ]
Hi Lisa,
If you are buying conventionally, the down payment depends on whether you are buying a personal residence, or rental property, your credit score, and perhaps even the type of loan that you are obtaining. You can find many low down or nothing down loans, but there are always variables, like the interest rate, points, etc. Best of Success!
BAMZ
Keep in mind that the more you put down the better the rate or at least negociating power.
If it is an investment property, put the lowest amount down you can and use your cash to fix up the place.
Good luck!
Local lenders tend to be more flexible than Big bank lenders. My bank will do a 85%LTV at 6% (for 20 year loan) with no mortgage insurance and will allow seller second mortgages. If you are willing to pay the increase in rate (7-8% or more) I have seen 95% LTV if you have the credit. Look at the lenders tab above. Closing cost tend to be big on that type of loan (3000 or more as opposed to my loan with closing costs of less than 2000)
Lisa,
Also keep in mind that if you have less than an 80% Loan to Value, you will also have to pay Private Mortgage Insurance every month.
Depending on your situation, you may be ok with that. But put that in your back pocket and remember that when analysing the loan options!
Best of Success!
BAMZ
As stated in other replies, quite dependent upon your goals, credit...my exp. has contributed to a strategy of 80% financing (LTV or LTSP), 30 yrs, no ARMs, recently 7.50%, and generally no buy downs...obvously I'm pursuing buy & hold...this will typically maximize ROE over the long-haul, building equity, while minimizing risk as well as cost of capital...the flippers will scoff, but I want to continue to buy for many years to come and don't believe IRAs nor 401ks can outperform good rental property when factoring in leverage, inflation & taxes. Best of luck.