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rob_s
08-27-10, 12:06
I'm kind of curious to hear what you're seeing right now. Rates, downpayment requirements, income vs. purchase price ratios, total closing costs, etc.

What I'm hearing right now sounds like needing to come up with upwards of $25k up front to buy a $300k house.
austinN4
08-27-10, 12:29
What I'm hearing right now sounds like needing to come up with upwards of $25k up front to buy a $300k house.
That is less than 10%. Doesn't sound like enough to me.
rob_s
08-27-10, 12:33
What I'm hearing is 5% down (which in this case would be $15k) plus closing costs and escrow up to $10k.
Skyyr
08-27-10, 12:36
I'm kind of curious to hear what you're seeing right now. Rates, downpayment requirements, income vs. purchase price ratios, total closing costs, etc.

What I'm hearing right now sounds like needing to come up with upwards of $25k up front to buy a $300k house.

I'm not in the industry, but I just bought a house and have the details fresh in my mind. Unless you qualify for a FHA loan or government-assisted/sponsored program, the new "standard" is 5% down. Closing costs are typically between 3 and 6%. In the case of buying a previously owned home, the sellers will typically pay up to 3% of the closing costs. At least, that's how it was in April / May here in Tennessee.

For previously owned homes, that's a ~8% overall payment, which co-coincides with your $25,000 figure (8% is actually $24,000).
austinN4
08-27-10, 12:58
Unless you qualify for a FHA loan or government-assisted/sponsored program, the standard is 5% down.
Wow! Seems like low downpayments were part of what got us into this mess. On the 3 houses I have bought in my lifetime I had to put 20% down.

Edited to add: What are the income and debt formulas now?
Safetyhit
08-27-10, 18:53
What I'm hearing is 5% down (which in this case would be $15k) plus closing costs and escrow up to $10k.


This would be an FHA scenario. They run between 3% and 5% down plus closing costs and escrows. The escrows forecasted are often on the high side and you will probably end up paying a bit less. Assuming your loan officer and title company estimated correctly, that is.

A standard conforming loan usually requires 10%-20% down and these days a credit score of 660 or higher. The primary benefit is a moderately lower interest rate.
Impact
08-27-10, 19:32
+1 austin12gauge.

I thought 20% were required.
Safetyhit
08-27-10, 20:00
+1 austin12gauge.

I thought 20% were required.


As stated above, 20% is often required for a what is commonly known as a conforming loan. Conforming referring to someone with a high credit score over the current threshold, which is currently 660 with most groups.

Some require low 700's as a minimum.
Nathan_Bell
08-28-10, 11:26
From the folks that I used to work with when I was in the game, almost all are re-finances. People who are in a good position shifting to a really good positions.
The purchases have been 20%+ down or FHA. No banks are offering non-conforming programs of their own anymore. The biggest stretch I have heard is that they are willing to count your payment of the closing costs out of pocket towards their down payment percentage figure.