Can I get a home loan with less than 20% down payment? – Lending options in today’s marketplace

The Barr Team First Time Homebuyer Info, Info for Home Buyers, Info for Home Sellers, Info on Home Financing, Info on Real Estate Transactions Leave a Comment

In this video Henry Barr briefly explains lending options in our mountain community…
This is Henry Barr from The Barr Team here at Remax Properties of the Summit in Frisco, Colorado. Today I am going to speak a little bit about lending options, particularly how much down payment is necessary in today’s marketplace. There are two segments of the market that down payments are a little bit different, first homes and second homes. For a second home normally 20% down to 25% down depending on how much documentation you want to provide. Occasionally we will see it less than that but for that you really need to check with your lender because those 10% down loans on second homes is really very much a specialty and rare in the marketplace. If it is an investment property they will usually want 25% to 30% down, so check with you lender if it is an second home or investment property. Now onto first homes, or owner occupied, right now the market is any where from 20% down to (actually there are some with) 0% down. You can do what we call a USDA loan if you can qualify and the property qualifies for basically 0% down. FHA (Federal Housing Authority) loans are roughly 3% to 5% down. And then for 5% to 10%  down your can do unconventional with PMI (Private Mortgage Insurance). When you get to 20% down PMI usually goes away. Those are some options so people that think they don’t have enough for down payment probably do. They need to check with a good lender to find out what options are available for them.