Question about buying a house

[Mr210]

watching shows about buying a house I always hear people talking about how much do they have saved up for a downpayment. So my assumption is the down payment comes straight out of pocket from the homebuyer and its not part of the mortgage loan that they get. Is this correct and does this include the closing cost and paying the realtor or is the loan cover this for example

If someone gets approved for $400,000, but buy a house that is $330,000, can that $70,000 go to paying the down payment and realtor or what

 

[john goodman]

You used to be able to do that but not anymore

You need 20% cash these days


Edit: by the way those shows are planted by the national association of realtors to encourage Americans to buy houses... So demonic

 

[Mr210]

You used to be able to do that but not anymore

You need 20% cash these days


Edit: by the way those shows are planted by the national association of realtors to encourage Americans to buy houses... So demonic

so for example on a 300,000 house you will need to pay $6,000 cash for the downpayment...shyt guess I wont be coping a house anytime soon

 

[john goodman]

60k ya

eventually lending standards will be relaxed, this country likes to create bubbles to keep the economy chugging along so they'll start handing out money again at some point this decade

 

[Mr210]

60k ya

eventually lending standards will be relaxed, this country likes to create bubbles to keep the economy chugging along so they'll start handing out money again at some point this decade

wait a sec....on $300,000 house the downpayment is 60,000 or 6,000 no one is 60,000 who the hell has that cash especially young folks

damn i really thought the loan took care of the downpayment, im ready to move into a house, have the money for the monthly mortgage but I dont have no 10k or so to put down on house straight cash

 

[BlvdBrawler]

wait a sec....on $300,000 house the downpayment is 60,000 or 6,000 no one is 60,000 who the hell has that cash especially young folks

damn i really thought the loan took care of the downpayment, im ready to move into a house, have the money for the monthly mortgage but I dont have no 10k or so to put down on house straight cash

Yea it's 20% down or 60k.

Most first-time buyers aren't buying a house for 300k. What you do is buy a 120k home, earn some equity in it, then sell it and use that equity for your next home. Eventually you'll have 60k in equity no problem that can go towards that 300k home.

 

[The ADD]

You should look into first time home buyer programs in your area. They can be a resource for education on the process and down payment assistance

 

[jab343irk]

buy a low cost house like someone said. Live in there for some years fix it up and sell for a profit and use that money for a down payment on a huge house

 

[Tyuhnjko]

Buy a home that has been in foreclosure or a short sale. You can get them cheap. Then do some upgrades and wait... in a few years the market will go back to normal and you will have mad equity. You can then sell and use the profit to buy a more expensive home.

 

[K-O-B]

FHA Loan. 3.5% down

 

[beenz]

FHA Loan. 3.5% down

this right here. also you can get a conventional loan with as little as 5% down as well.

the days of folks taking cash home at their closing date are LONG gone. if you get approved for 400k and buy a house for 350K, minus your downpayment, that's how much the bank is cutting a check for. and you will NEVER EVER be seeing that additional 50K coming to your pockets.

also, someone said a first time homebuyer would NEVER get approved for 300K. that's not true either. how much mortgage you get approved for is contingent on your credit, your income, and the amount of outstanding debt you have every month.

also, when you put less than 20% down on a house, you have to pay PMI (mortgage insurance) every month until you get 20% equity in your house, and then they'll take it off.

so if your house cost $250K, is it worth it to you to put down a sizeable amount of capital in $50K or more (given you have it) in order to save like $100 a month in PMI??? personally, for me, I'd prefer to preserve my capital and pay a little more for a few years on my mortgage than have to drop so much cash.

 

[I_Got_Da_Burna]

You used to be able to do that but not anymore

You need 20% cash these days


Edit: by the way those shows are planted by the national association of realtors to encourage Americans to buy houses... So demonic

An FHA loan only requires 3%

 

[Timeis$]

Yeah the standard is to have to 20% down payment but there are certain loans the require less or no down payment depending on your lender.

My credit union has 100% financing loans so zero down payment if you have good credit and no PMI. This is what I used but then they can throw in other fees into the loan amount like origination fees.
VA loans you can also do zero down payment. But with closing costs and down payment it can get expensive to buy a home. So you'll usually need some type of savings.

 

[Skooby]

also, when you put less than 20% down on a house, you have to pay PMI (mortgage insurance) every month until you get 20% equity in your house, and then they'll take it off.

so if your house cost $250K, is it worth it to you to put down a sizeable amount of capital in $50K or more (given you have it) in order to save like $100 a month in PMI??? personally, for me, I'd prefer to preserve my capital and pay a little more for a few years on my mortgage than have to drop so much cash.

They won't do that automatically. You have to inform the lender to take the PMI off. And even then you have to get the house appraised before they'll removed it, which could be a few hundred dollars.

 

[beenz]

They won't do that automatically. You have to inform the lender to take the PMI off. And even then you have to get the house appraised before they'll removed it, which could be a few hundred dollars.

every time I have bought a house, you have to do an appraisal anyways. that was always part of getting a mortgage.

ironically, I JUST bought my current house 3 days ago, and I'm renting out my old house. I have never seen a way to get around paying PMI if you don't have 20% equity. so unless you got a GREAT deal on a spot where it appraised waaay over what you paid, you're gonna be paying that PMI (given u didn't put down 20%).