Pat Starnes Snippets

FAQ - How Much Down Payment Do I Need To Buy a House?

One question I hear frequently from home buyers is how much down payment will they need to buy a home.

Down payments typically start at 3%, 3.5%, 5% and go to 20%, but in some instances, loans are available where NO down payment is required.

 

Question mark inside light bulb

THREE OPTIONS FOR NO DOWN PAYMENT (Zip, Zero, Nada):

  1. VA Loans ~ If the borrower is eligible for VA financing, you can borrow 100% of the sales price. 
  2. USDA Rural Housing loans ~ offers 100% financing to qualified buyers based on credit approval, income limits, and qualifying location.
  3. Mississippi Home Corporation ~ has Bond money available which is a Cash Advance feature to assist borrowers with down payment and closing costs. These loans are for either first time home buyers or people who have not owned a principal residence in the past three years. Income guidelines must be met. 

 

FHA:

This stands for Federal Housing Administration. The FHA program has been around since the 1930s. Backed by the Federal Government, these loans are designed to make home buying affordable for most Americans. The maximum loan amount in Rankin, Hinds, and Madison counties is $281,750 before MIP (Mortgage Insurance Premium). You must have a minimum credit score of 600 to qualify, and a 3.5% down payment.

 

CONVENTIONAL:

Conventional loans have a minimum down payment requirement between 3-5%, with a minimum credit score of 620. Mortgage insurance is required until your equity in the property is roughly 22%.

 


 

Other programs are available, but these are the most popular choices. Specialty loans are available for doctors, teachers, self-employed individuals with verifiable income, but I won't go into these here.

As you can see above, there are a few types of loans that require no down payment. Others require between 3-5%. If you have specific questions you'd like to ask on a personal basis about home buying or financing in the Jackson metro area, feel free to call me. I'm here to help.

Magnolia Photo by Pat Starnes

Image courtesy of sscreations at FreeDigitalPhotos.net

 

Written and Published by Pat Starnes REALTOR

Join ActiveRain for Free - Pat Starnes   facebook   google plus   twitter   linkedin   pinterest

Pat specializes in Residential and New Home Sales 

Primary Service Area:

Brandon, Pearl, Ridgeland, Flowood and the Ross Barnett Reservoir area

 Pat Starnes, Broker Associate

Front Gate Real Estate, 6700 Old Canton Rd., Suite C

Ridgeland, MS 39157

601-991-2900 - Office

601-278-4513 - Cell

 

Recent Blog Posts by Pat Starnes:

 

Rankin County Requires Utility Permit and Inspection When House Sells

Six Easy Tips to Save Money on Your Home Inspection

What Does The ABR Designation Stand For?

Should You Consult a Realtor When Buying New Construction?

Homes for Sale in Scottish Hills ~ Brandon MS 39047

Homes for Sale in Hidden Hills Subdivision, Brandon, MS 39047

Homes for Sale in Castlewoods Subdivision, Brandon, MS 39047

Gardens of Manship Neighborhood Information - Brandon, MS 39047

 

Are you looking to buy or sell a home in the Brandon MS market? Call me!

Comment balloon 4 commentsPat Starnes, Brandon, MS • June 25 2017 03:33AM
FAQ - How Much Down Payment Do I Need To Buy a House?
share
One question I hear frequently from home buyers is how much down payment will they need to buy a home. Down payments typically start at 3%, 3. 5%, 5% and go to 20%, but in some instances, loans are available where NO down payment is required. THREE… more
FAQ ~ Why Wasn't My Offer Accepted?
share
You found a house you love and want to make an offer. You discuss price, terms, etc., with your Realtor, write the offer, and mentally start making plans for the future. The next day, your Realtor tells you another offer was more favorable, and you… more
Patrick Farms Subdivision ~ Homes for Sale in Pearl MS
share
ABOUT PATRICK FARMS: Patrick Farms is a planned residential community located in Pearl MS 10 minutes from the Jackson International Airport and convenient to I-20. It is surrounded by a semi-private 18 hole golf course built in 1999 by the… more
Sellers, What Makes Your Neighborhood Great?
share
If you were looking for a home, would you consider the neighborhood as much as you consider the house you will ultimately select? Smart buyers also look at the condition of the surrounding homes, whether the yards are maintained, what the amenities… more
Market Snapshot for Castlewoods Subdivision ~ Brandon MS
share
ABOUT CASTLEWOODS: Castlewoods Subdivision in Brandon is home to over 2000 households that entwines with Castlewoods Golf Course, a Jack Nicklaus designed course built in 1994. The club is independently owned and operated. Castlewoods consists… more