Buying a house questions??

Question

Houses around my area are about 450,000 for the cheap rambling 3 bedrooms. That’s our max budget. We have poor credit (580s for both of us). What is a reasonable down payment? I was hoping no more than 20,000 but I’m seeing most banks will want 20% from us which is almost 100,000k! 😨😨😨

Answer

Yes, a standard mortgage will usually require 20%. There are other loan options, such as an FHA, that have lower options. Unfortunately, loans with these options typically have minimum score requirements. Also, another consideration is that the lower your down payment the higher your mortgage payment will be, and your lender will be VERY interested in your income and debts.  
You might as well contact some lenders and get a preapproval. You’ll want to have it when you start house shopping anyway and it will give your lender a chance to tell you how big a mortgage you can be approved for and what amount you’ll need down.

Answer

Normal down payments are 20% and with your credit they will probably require at least 20%

Answer

You can do a USDA (0%) down loan depending on location. FHA is only 3% down, or if you have 5% you can do a conventional loan but will need to pay PMI until more equity is established. Conventional loans can be done at 5% now so for you about $22,000 on a $450,000 house. You just need to pay the PMI for a while. Meet with a mortgage lender and go over your options. Home ownership much more attainable now with all the different loan options.

Answer

Thanks everyone. It is looking like it might be in our best interest to move across the mountains where houses cost more around 200k. Thank goodness as a nurse (me) and iron worker (hubs) we have the job security to be able to relocate. I love this area but saving up 100,000 dollars would take so many years. So so so many years. Not really realistic for us unfortunately. ☹️

Answer

I don't think many banks require 20% down. I work at a bank and for a conventional Freddie Mac loan, we require 3% down. The 20% down is usually in regards to PMI (private mortgage insurance). You pay extra per month to insure the loan until your loan to value ratio drops below 80%. If you put down 20% up front, you don't have a monthly PMI added on. We bought our house for $105,000 and put 10% down. Our PMI is $78/month. I would check with whomever you bank with to check their requirements 😊

Answer

20% will keep you from paying PMI insurance. It’s insurance that protects the lender and you will pay it for them unless you have that 20% down. 
Usually banks just want you to pay for closing costs up front which in my case would be 5-6k max. I don’t know what it’s like in your state or for that price of a house as I’m looking to spend no more than $160k. I also have good credit so that may make a differences 
Lower credit scores mean a higher interest rate and sometimes the banks will want a higher down payment so it all depends on the lender. Get pre approved, that will help.  Set up and appointment with your bank. It’s free and the loan advisor can answer all your questions and walk you through payments/credit/etc. 
Good luck!

Answer

Holy shit. $450,000 for a house?! Where do you live. That’s a mansion where I live. Anyways you can look into first home buyer loans or VA loans if you or your SO is military

Buying a house questions??

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