…I know it sounds simple, but many people don’t realize the amount of funds they will need available to get into a house.
Here is a simple breakdown of your out of the out of pocket costs you could expect by loan program.
1) VA: 100% loan. No down payment.
2) USDA: 100% loan. No down payment
3) FHA: Minimum 3.5% down payment.
4) Conventional: 5% minimum down payment. (There is also a 97% conventional).
…but you can expect more out of pocket than just the down payment. There are two other costs you can expect to pay when you purchase a home…
1) One, is prepaids. This is pre paid interest, taxes, and insurance. Typically your prepaids will run 1% to 2.5% of a sales price.
2) Then there’s your closing costs… Typically closing costs (from all entities – title, appraisal, mortgage, survey, etc.) will add another 1% to 2% to a sales price.
Be prepared for these additional costs. However, there are a couple of ways to help you lower the closing costs and prepaid expenses.
The best way is to ask the seller to help you.
If the seller refuses to help you pay your closing costs and pre paids – there are other ways to get this done. Contact me and we can discuss some options for you.
That’s it for today!
Have a good day today! …and thanks for reading.
Brett
One of the most important things you will have to do when you apply for…
I wanted to remind you that we have a 2% to 5% downpayment and closing…
If you receive money from the State or a County sponsored organization for providing foster…
Do you have investment property, and would like to pull cash out of your property?…
I wanted you to know about a mortgage program that doesn’t require any income documentation…
The bad news is that according to Redfin, 38% of U.S. renters don’t believe they’ll…
