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but your offer will never be accepted. someone will offer more down, conventional, or even multiple cash offers. especially for homes in the starter price rang

but your offer will never be accepted. someone will offer more down, conventional, or even multiple cash offers. especially for homes in the starter price range.

gizmo686 5y ago
The seller doesn't care about how much you put down. Cash offers will beat a comparable offer with a mortgage contingency. At the margin, sellers may compare equivelent offers based on how likely they think the mortgage is to be approved; but most buyers are pre-approved regardless of down payment or mortgage type, so this wouldn't be that significant of a factor. The bigger factor sellers look at is how much money you offer them. At 20% on a conventional, you may be able to get your lender to wave the appraisal requirement, which would be a help if you try offering much over the list price (unless you also have the cash to make up the difference, which if you need the 3% down payment, you probably dont).
- seanmcdirmid 5y ago
  Sellers care about down payments in so much as they can gauge how serious you are about closing successfully. Everything else being equal (if the bids are the same, if not it doesn’t matter).
- locusofself 5y ago
  FHA loans are less attractive to a seller than an equal conventional loan because they have stricter inspection and appraisal requirements.
Beached 5y ago
you can do conventional with only 3% too. your down payment has no affect on the offer chosen, the seller doesn't even get to know.
- ganoushoreilly 5y ago
  Some markets have home buyers picked based on earnest and Diligence monies. Usually these are applied to closing / down payment. In those instances it’s clearer.
- locusofself 5y ago
  I sold a house last year in Washington and I saw the down payment amounts in the offers I received.
- gamechangr 5y ago
  That's for sure not accurate. Sorry friend. The seller both sees your down payment and it also affects which offer is chosen. Let me give an example to explain why they see it and why it's important. let's say that the agreed contract says that the buyer and seller agree to pay $600,000 for the house. Let's pretend that you have 10% down or $60,000 down. You need a loan for $540,000 The loan requires an appraisal to make sure that the bank (the loan) is a safe investment. The bank/loan only agrees to lend you the amount the house appraises at. Back to the example and the appraiser comes out and says that the house is worth $500,000. In this case, again the signed offer says $600,000 with a $60,000 deposit. The buyer either has to bring $100,000 to the table or the seller has to agree to make less money than the original offer (or some combination of the two) , but the bank will only give $500,000. So if a buyer had a $100,000 downpayment and offered $600,000 and a second buyer offered $600,000 as well but only had $60,000, the seller would most likely choose the offer with more money down. it would be more likely to close. Hope that helps
notfromhere 5y ago
You can get a conventional mortgage for 3.5%

but your offer will never be accepted. someone will offer more down, conventional, or even multiple cash offers. especially for homes in the starter price range.

gizmo686 5y ago

The seller doesn't care about how much you put down. Cash offers will beat a comparable offer with a mortgage contingency. At the margin, sellers may compare equivelent offers based on how likely they think the mortgage is to be approved; but most buyers are pre-approved regardless of down payment or mortgage type, so this wouldn't be that significant of a factor. The bigger factor sellers look at is how much money you offer them. At 20% on a conventional, you may be able to get your lender to wave the appraisal requirement, which would be a help if you try offering much over the list price (unless you also have the cash to make up the difference, which if you need the 3% down payment, you probably dont).

seanmcdirmid 5y ago
Sellers care about down payments in so much as they can gauge how serious you are about closing successfully. Everything else being equal (if the bids are the same, if not it doesn’t matter).
locusofself 5y ago
FHA loans are less attractive to a seller than an equal conventional loan because they have stricter inspection and appraisal requirements.

Beached 5y ago

you can do conventional with only 3% too. your down payment has no affect on the offer chosen, the seller doesn't even get to know.

ganoushoreilly 5y ago
Some markets have home buyers picked based on earnest and Diligence monies. Usually these are applied to closing / down payment. In those instances it’s clearer.
locusofself 5y ago
I sold a house last year in Washington and I saw the down payment amounts in the offers I received.
gamechangr 5y ago
That's for sure not accurate. Sorry friend. The seller both sees your down payment and it also affects which offer is chosen. Let me give an example to explain why they see it and why it's important. let's say that the agreed contract says that the buyer and seller agree to pay $600,000 for the house. Let's pretend that you have 10% down or $60,000 down. You need a loan for $540,000 The loan requires an appraisal to make sure that the bank (the loan) is a safe investment. The bank/loan only agrees to lend you the amount the house appraises at. Back to the example and the appraiser comes out and says that the house is worth $500,000. In this case, again the signed offer says $600,000 with a $60,000 deposit. The buyer either has to bring $100,000 to the table or the seller has to agree to make less money than the original offer (or some combination of the two) , but the bank will only give $500,000. So if a buyer had a $100,000 downpayment and offered $600,000 and a second buyer offered $600,000 as well but only had $60,000, the seller would most likely choose the offer with more money down. it would be more likely to close. Hope that helps

notfromhere 5y ago

You can get a conventional mortgage for 3.5%