- 548
- 10
- Joined
- Feb 27, 2003
Info on the Cali credit:
Whats the least amount a realtor will accept for a down payment on a house Vol. Southern Cali
The problem is the term "long run" is subjective for a house. If this is someones first house, do they picture themselves in it forthree years, five years, 10 years, etc....I see your point and agree with you. However, the area is also going to play a roll on how much the house/condoappreciate in the future. Certain areas up here (Tracy, Modesto) touted themselves as being the future and how "accessible" the city is to SF. Therearen't enough jobs to hold the values they were getting during the peak (2005 - 2007) and look what happened....1 out of every 2 houses in the city is wayinto negative equity.
That being said, view your home as a place to live and not an investment. Purchase what you can afford (obviously) but run scenarios over a longer period oftime. Not just the loan terms, but your life and lifestyle.
3% down now in some areas will evaporate in 6-months and may not be able to be recouped for some time. Which could lead to problems down the road if you needto get a bigger place or need to move, etc.
- 4,081
- 390
- Joined
- May 25, 2008
How are the housing prices in rancho?
snow pl0w
Banned
- 91
- 10
- Joined
- Apr 13, 2009
If you can't stack 10-20% for a down payment then you can't afford the crib, period. Who is approving these loans? The housing market sucks, the jobmarket sucks..but banks are yearning to get broke guys who can't stack 10% dps into cribs? Just because some shady lo is getting you into a housedoesn't mean it's a good decision..but the people in this thread seem to have it all figured out....if all of this is true it sounds like the sharksare feeding again.
- 6,548
- 2,596
- Joined
- Nov 4, 2002
Is there a penalty or monthly fee for putting 3% down instead of the required 20% down?
- 403
- 61
- Joined
- Apr 27, 2006
Sorry, but you are completely incorrect. What you do not realize is that 10% is already a lot of money. If you are purchasing a house for example at 300,000then that is $30,000 right out of your pocket with a 10% down payment compared to 10,500 at 3.5% which is a difference of 19,500. You are not taking intoconsideration any upgrades or cosmetic damages done to the house that you might have to put into the house if it is not brand new as well as money forfurnishing your house. Furnishing includes furniture, electronics, appliances, kitchen utensils etc. which can cost anywhere from another 5,000-20,000 (on thelow side) depending on your taste. Cosmetic upgrades and materials are not as much but it still cost money to fix a house assuming you can do all yourselfwithout paying to hire anyone. Take also into consideration that you have monthly bills like electricity, water, garbage, telephone, cable, internet and yourmonthly food expenses. That total comes to about $35,000-55,000 without any of the monthly obligations taken into account just to move into your house at 10%down. I know that you do not want to eat top ramen for a whole year so unless you got money like it aint a thing then there is nothing wrong with taking a FHAloan at 3.5% and saving the other 6.5% for money going into your house. So to answer your statement YES people with under 10-20% downpayment can afford a houseand will continue to buy houses because for many its the most practical decision they can make.
- 403
- 61
- Joined
- Apr 27, 2006
There is no penalty for putting 3% down instead of 20%. The downside is having a higher interest rate and a higher monthly mortgage payment. Thegood thing is that at a FHA 3.5% down you still get a solid 30 year fixed loan at a good rate with no prepayment penalty assuming that you qualify of course.
- 6,548
- 2,596
- Joined
- Nov 4, 2002
Yea thats what I was referring about, PMI. Does anyone know the rate or have any info about it?
- 403
- 61
- Joined
- Apr 27, 2006
In CA the only way to aviod PMI is to put 20% down.
- 13,065
- 2,322
- Joined
- Jul 6, 2002
Yep. Back when my parents bought our current house about 1.5 yrs ago...they put down a 25% down, but the bank didn't approve because theyfelt the asking price was too high. A month of negotiation was made before the deal was closed.
I don't think anyone will loan you if you don't have at least 20% for a down.
I'm also trying to put a fat down on a house in the next year or two.
- 6,548
- 2,596
- Joined
- Nov 4, 2002
- 1,308
- 11
- Joined
- Apr 25, 2003
I'm glad to see a lot of good info in this thread. Some of you guys actually know what you are talking about. That's what I like to see.
I can't add anything that hasn't already been said. Carry on fellas..
I can't add anything that hasn't already been said. Carry on fellas..
- 96
- 10
- Joined
- Jan 30, 2003
Yeah you don't know what you're talking about. Like I said, I have the 10% down for the house but then that will leave me with almost no savings,something I'm not comfortable doing. The wife and I make more than enough money to afford our monthly payment which would only be about $2400 on a $350000loan. We make twice that every 2 weeks. She just graduated from her masters program two years ago so she hasn't had much time to save up money consideringthat we've payed off the big majority of our student loans. Trust me, I've researched this thing pretty well to make sure I won't have any problemsin the future. I have no debt, cars are paid off, why not jump in on the housing thing right now that these prices are dropping. I've seen homes going forunder $300000 that sold for about $550000 no more than 3 years ago.
- 21,947
- 1,374
- Joined
- Jan 12, 2003
A house in the range of 100,000-250,000?
Damn, houses around here in Queens, NYC (cheap ones) are probably 400,000....and they are usually crappy 2 family homes that need a lot of renovations.
Since I'm still relatively single (not married) I'm not sure if I should personally buy a large home unless I rent a floor out or something, butI'll probably stick with a condo.
Question though I thought down payments are usually 20% and not 3-5% like some posters are writing. 5% on a 500,000$ home is basically $25,000.....which Idefinitely do have already in my account. 10% would be nuts I'd def. need a loan.
Damn, houses around here in Queens, NYC (cheap ones) are probably 400,000....and they are usually crappy 2 family homes that need a lot of renovations.
Since I'm still relatively single (not married) I'm not sure if I should personally buy a large home unless I rent a floor out or something, butI'll probably stick with a condo.
Question though I thought down payments are usually 20% and not 3-5% like some posters are writing. 5% on a 500,000$ home is basically $25,000.....which Idefinitely do have already in my account. 10% would be nuts I'd def. need a loan.
da r entertainment
Supporter
- 9,758
- 3,568
- Joined
- Jul 20, 2002
Depends on how much the bank requires as a downpayment.Originally Posted by Mez 0ne
A house in the range of 100,000-250,000?
Damn, houses around here in Queens, NYC (cheap ones) are probably 400,000....and they are usually crappy 2 family homes that need a lot of renovations.
Since I'm still relatively single (not married) I'm not sure if I should personally buy a large home unless I rent a floor out or something, but I'll probably stick with a condo.
Question though I thought down payments are usually 20% and not 3-5% like some posters are writing. 5% on a 500,000$ home is basically $25,000.....which I definitely do have already in my account. 10% would be nuts I'd def. need a loan.
- 13,065
- 2,322
- Joined
- Jul 6, 2002
Those houses are in the mud valley, man. If you want a decent location in SoCal...I'm talking safe middle class, not even upper middle class,you're looking at half a million for a nice 1200-1400 sq ft crib.Originally Posted by Mez 0ne
A house in the range of 100,000-250,000?
Damn, houses around here in Queens, NYC (cheap ones) are probably 400,000....and they are usually crappy 2 family homes that need a lot of renovations.
Since I'm still relatively single (not married) I'm not sure if I should personally buy a large home unless I rent a floor out or something, but I'll probably stick with a condo.
Question though I thought down payments are usually 20% and not 3-5% like some posters are writing. 5% on a 500,000$ home is basically $25,000.....which I definitely do have already in my account. 10% would be nuts I'd def. need a loan.
Back a couple of years ago when everyone spent what they had, no one followed the smart rule of thumb of putting 20% down on a house and put the bare minimal,which is what you mentioned. Now...times are hard, people are getting laid off, payments are being missed, homes are foreclosed so banks are making the 20% arequirement.
- 96
- 10
- Joined
- Jan 30, 2003
Originally Posted by wj4
Those houses are in the mud valley, man. If you want a decent location in SoCal...I'm talking safe middle class, not even upper middle class, you're looking at half a million for a nice 1200-1400 sq ft crib.Originally Posted by Mez 0ne
A house in the range of 100,000-250,000?
Damn, houses around here in Queens, NYC (cheap ones) are probably 400,000....and they are usually crappy 2 family homes that need a lot of renovations.
Since I'm still relatively single (not married) I'm not sure if I should personally buy a large home unless I rent a floor out or something, but I'll probably stick with a condo.
Question though I thought down payments are usually 20% and not 3-5% like some posters are writing. 5% on a 500,000$ home is basically $25,000.....which I definitely do have already in my account. 10% would be nuts I'd def. need a loan.
Back a couple of years ago when everyone spent what they had, no one followed the smart rule of thumb of putting 20% down on a house and put the bare minimal, which is what you mentioned. Now...times are hard, people are getting laid off, payments are being missed, homes are foreclosed so banks are making the 20% a requirement.
Banks aren't making the 20% down a requirement. I've already been approved for a loan while only putting 3.5% down. If your credit is good and yourfinances are in order you'll have no problems getting approved for a low down payment loan. The big reason the housing market blew up in our faces in thefirst place was more about those ARMs that people were getting. Once they adjusted, people couldn't afford to live there any more.
- 403
- 61
- Joined
- Apr 27, 2006
20% is only a requirement if you are trying to purchase a second home as a primary or investment. You are right about the market blowing up in ourface with those ARMS, but the biggest factor was that a couple years ago 0% down was the standard and it was done by everyone and their momma. Back then with0% down you did not have to verify your actual income it was just stated perfectly so you were able to purchase the home even if it was out of your pricerange. That mean 1) no equity in the house 2) people were only paying interest on their loan which led to peoples mortgages going up 3) people usuallyrefinanced their house to either purchase another house or something else for example like a car all in hopes that the values would keep rising so the homeowner would gain more equity. Eventually the median price for a home stopped rising and it led to any one of the 3 scenarios if not all of them happening tohomeowners That led to people not being able to afford their payments any more and forced them to either short sale or foreclose on their home.Originally Posted by dannyv23
Originally Posted by wj4
Those houses are in the mud valley, man. If you want a decent location in SoCal...I'm talking safe middle class, not even upper middle class, you're looking at half a million for a nice 1200-1400 sq ft crib.Originally Posted by Mez 0ne
A house in the range of 100,000-250,000?
Damn, houses around here in Queens, NYC (cheap ones) are probably 400,000....and they are usually crappy 2 family homes that need a lot of renovations.
Since I'm still relatively single (not married) I'm not sure if I should personally buy a large home unless I rent a floor out or something, but I'll probably stick with a condo.
Question though I thought down payments are usually 20% and not 3-5% like some posters are writing. 5% on a 500,000$ home is basically $25,000.....which I definitely do have already in my account. 10% would be nuts I'd def. need a loan.
Back a couple of years ago when everyone spent what they had, no one followed the smart rule of thumb of putting 20% down on a house and put the bare minimal, which is what you mentioned. Now...times are hard, people are getting laid off, payments are being missed, homes are foreclosed so banks are making the 20% a requirement.
Banks aren't making the 20% down a requirement. I've already been approved for a loan while only putting 3.5% down. If your credit is good and your finances are in order you'll have no problems getting approved for a low down payment loan. The big reason the housing market blew up in our faces in the first place was more about those ARMs that people were getting. Once they adjusted, people couldn't afford to live there any more.
- 649
- 10
- Joined
- Nov 11, 2007
For an FHA loan, its a govn't back loan. You'll just need 3.5% of the purchase price.
*You will have to pay an Up Front Mortgage Insurance(.75 to 1.5 of the purchase price). You could ask to add this up front M.I. to your balance, whicheverybody does. Or pay it up front. And you'll still have the PMI until your Loan to value ratio (LtV) is less than 80%. When you have'd payed 20% ofthe loan balance the pmi will go away.
The only differece with an FHA to a Conventional is the up front M.I and how much you could ask the seller for closing cost.
For an FHA, you could ask the seller, which is probably the bank, up to 6% of the purchase price for closing cost(conventional is 3%). If you happen to haveextra money from the closing, then you could use that to maybe pay down your rate(or buy down) or go to a future property tax payment. But you cannot pocketthe money.
FHA credit score requirement is at least 620. And if you are in the 700's then you'll get a good rate.
You should get a Good Faith Estimate when you go qualify for a loan. The GFE will tell you all the fees, closing fees, ur interest rate, and money payment.
951- rancho has a variety of prices.
I used to do loans too, but it was a hassel really. So I just stuck with real estate.
*You will have to pay an Up Front Mortgage Insurance(.75 to 1.5 of the purchase price). You could ask to add this up front M.I. to your balance, whicheverybody does. Or pay it up front. And you'll still have the PMI until your Loan to value ratio (LtV) is less than 80%. When you have'd payed 20% ofthe loan balance the pmi will go away.
The only differece with an FHA to a Conventional is the up front M.I and how much you could ask the seller for closing cost.
For an FHA, you could ask the seller, which is probably the bank, up to 6% of the purchase price for closing cost(conventional is 3%). If you happen to haveextra money from the closing, then you could use that to maybe pay down your rate(or buy down) or go to a future property tax payment. But you cannot pocketthe money.
FHA credit score requirement is at least 620. And if you are in the 700's then you'll get a good rate.
You should get a Good Faith Estimate when you go qualify for a loan. The GFE will tell you all the fees, closing fees, ur interest rate, and money payment.
951- rancho has a variety of prices.
I used to do loans too, but it was a hassel really. So I just stuck with real estate.
- 10,490
- 229
- Joined
- May 2, 2001
my parents had to put down 40% of their home when they bought their house back in the day...
it's just a different mentality our generation has.
it's just a different mentality our generation has.
- 649
- 10
- Joined
- Nov 11, 2007
40%. Well back then, a price for a home would roughly be around $30,000.
You know FHA loans have been around for a long time. Its just the subprime, arm, and other adjustable loans became more popular.
You know FHA loans have been around for a long time. Its just the subprime, arm, and other adjustable loans became more popular.
- 10,490
- 229
- Joined
- May 2, 2001
a little bit more than that....I believe it was around 80K-100K.
even without taking into account inflation and what not.... that's still a hefty sum.
I don't even think too many people today could come up with that amount.
even without taking into account inflation and what not.... that's still a hefty sum.
I don't even think too many people today could come up with that amount.
- 4,081
- 390
- Joined
- May 25, 2008
Originally Posted by wj4
Those houses are in the mud valley, man. If you want a decent location in SoCal...I'm talking safe middle class, not even upper middle class, you're looking at half a million for a nice 1200-1400 sq ft crib.Originally Posted by Mez 0ne
A house in the range of 100,000-250,000?
Damn, houses around here in Queens, NYC (cheap ones) are probably 400,000....and they are usually crappy 2 family homes that need a lot of renovations.
Since I'm still relatively single (not married) I'm not sure if I should personally buy a large home unless I rent a floor out or something, but I'll probably stick with a condo.
Question though I thought down payments are usually 20% and not 3-5% like some posters are writing. 5% on a 500,000$ home is basically $25,000.....which I definitely do have already in my account. 10% would be nuts I'd def. need a loan.
Back a couple of years ago when everyone spent what they had, no one followed the smart rule of thumb of putting 20% down on a house and put the bare minimal, which is what you mentioned. Now...times are hard, people are getting laid off, payments are being missed, homes are foreclosed so banks are making the 20% a requirement.
- 22,977
- 4,913
- Joined
- Jan 19, 2002
i wanna do sumn bad about gettin a house
. but i have 1 year left inschool, so by the time im done and get a stable job with nice $$ these houses are going to not be such a good value as they are now
