…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
Did you know even if you have “challenged” credit you can still get a low…
If you receive money from the State or a County sponsored organization for providing foster…
I wanted to address the two most common questions that I get regarding reverse mortgages……
If you purchased a home using your own cash, and now would like to pull…
I wanted to let you know we have a 2% to 5% downpayment and closing…
If you want to acquire rental properties, but you are having issues proving your income…
