Jose Diaz - Loan Officer
Jose Diaz - Loan Officer en Miami - ¿Buscando Préstamos hipotecarios en Florida? En los últimos años he ayudado a cientos de familias ¡Comprar su primera casa!

If you are waiting to have 20% to buy a property, perhaps you should reconsider. It’s a common misconception that you HAVE to put 20% down to buy a house. IT IS NOT LIKE THIS!

When people make an initial 20% downpayment, it is usually a Conventional mortgage to eliminate “Private Mortgage Insurance” or PMI, as it is commonly known. This is a small portion of the monthly payment that will be removed when the property has 20% equity.

Instead of putting in 20%, there are Conventional programs like “HomePossible” or “HomeReady” which, if you qualify, drastically reduce your PMI.

Conventional Loans

The minimum down payment required for a conventional loan under Fannie Mae or Freddie Mac guidelines with a loan amount of up to $417,000 is only 5% of the home’s purchase price. If the amount is greater than $417,000, the initial can be as little as 10%. But on many occasions when they are loaned below $200,000 you can get in with a 3% down payment.

FHA loans

The minimum down payment for an FHA loan is only 3.5% of the purchase price of the home. This means that a down payment on a house of, say, $250,000 would be only $8,750 with this type of loan. FHA loans are insured by the Federal Housing Administration (FHA), which is part of the US Department of Housing and Human Development (HUD), an agency of the federal government.

VA and USDA Loans

VA loans, guaranteed by the United States Department of Veterans Affairs (VA), and USDA loans, backed by the United States Department of Agriculture (USDA), do not require an initial , which means buyers can purchase a home with very little money down. VA loans are available to most active duty military personnel and US military veterans, among other groups. USDA loans are available in rural and outlying suburban areas.

Conventional, FHA, VA and USDA loans allow at least a portion of the buyer’s down payment to be a gift from a family member or funds from a down payment assistance program. “With FHA, 100% of the down payment can come from gift funds, and with the 5% down conventional loan, all of that 5% can come from a gift,”

Do you want to buy your First House? I tell you that the first buyers can obtain the lowest interest in a fixed term, with the lowest downpayment in the market.

 

If you are thinking of buying or refinancing a property in Miami, Florida, send me a message in the box below or click here, and I will be ready to provide you with a totally free Financial Advice.

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