do i need 20 percent down

do i need 20 percent down
Speaker 1:
So people have asked, “Do I need 20% down for a conventional loan?” And the answer really is no, you don’t. There are some conventional loans that require 5% or 10% or even 20%, but they have some creative financing programs. What’s called the portfolio program that you could put as little as 3% down, believe it or not. And FHA, the traditional scope of FHA normally would require 3.4% down. So for less money than an FHA loan, you can actually get a conventional if you know the right lenders. Just a little bit about that. So if you Google it too, there are different requirements. So an FHA loan usually is a loan that has very many requirements such as safety items. Make sure that the roof is good and that there’s no peeling paint, no trip has hazards and such.

And then a conventional loan is usually just a little bit more lenient, right? Less stringent. That’s something again that you can Google and find out a good amount. And then there are other types of loans. Obviously, there’s the 203K loan, which is the fix up loan. In this market space, they’re really not doing a lot of those at this time. There are portfolio loans, which is what they call an in-house loan. And that’… you’ll see that a lot with credit unions or other creative lenders. So this 20% down, is it needed? Is it necessary? No. Are advantages to that. Ah, that’s another story because people know about PMI going away. Once you get beyond that point of the 20% being down, that’s something that you’re going to want to discuss with your lender. And again, it’s great that in this mid to post-edging out type of pandemic market space to that we’re in right now, this atmosphere, if you will, that you know, lending is still very, very strong.

The market’s still very, very strong. It’s still an extremely strong seller’s market. However, you’re starting to see prices edge down and trend down just a little bit with kids going back to school, whatever that piece looks like now. Hybrid of distance learning and going back certainly. And with some of the easements and restrictions being eased up over different markets and areas, you’re starting to see that prices are trending down just a little bit, but it’s still very, very strong both sellers and buyers markets. And again, talk to your lender because they’re really the ones that are going to put you in a position to understand how much you need down for your personal requirements in buying a home. So hope that helps. Any questions, give me a call. Tony Lanni, or Love to hear from you. I’d love to talk to you and love to help get you inside your next home. Take care.
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