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You only need 3.5% down with an FHA loan. To put that in perspective, a $300,000 home would only require $10,500 down.
by g2ah5z 7y ago
You only need 3.5% down with an FHA loan. To put that in perspective, a $300,000 home would only require $10,500 down.
- sjg007 7y agoYou can buy as low as 3% down and then there are the NACA loans and a slew of zero down programs.
- itsbenweeks 7y agoSort of. You'd be left paying the difference of 3.5% to 20% (16.5% or $49,500) in a FHA Mortgage Insurance Premium (MIP). This means another loan that you need a 1.75% down payment for (making your downpayment ≈ 3.8% or $11,400) that adds another payment (≈ $400) in addition to the mortgage. MIPs last the entire life of the FHA loan, too.
- g2ah5z 7y agoYes, it's effectively a higher interest rate on the entire loan, but my point was that you don't need a massive amount of cash up front to close the deal.
- itsbenweeks 7y agoAnd it's still a valid point. It's good to mention that a <20% down payment has caveats, too.
- tbyehl 7y agoDown payment is only a portion of the costs to buy a loan. My 3.5% down FHA mortgage on $309K purchase price cost me about $16K. My previous 5% down conventional on $103K was around $12K. Moving in ain't free, either.