HOW MUCH MONEY IS NEEDED FOR A DOWN PAYMENT & CLOSING COSTS?
There are loan programs available that do not require any down payment (100% financing). These loan programs have higher interest rates and may have a prepayment penalty. RATE IS ALWAYS TIED TO RISK! For most loans a minimum down payment of 5% is required plus money for closing costs, which tends to average 3 ½ – 4% of the sales price. Some programs allow the down payment and/or closing costs to be paid by the seller or to be a gift from a family member. During our consultation, I can advise you on these different types of loans. WHAT IF I DON’T HAVE AN ESTABLISHED CREDIT HISTORY? If you do not have enough established credit, we can work together to document alternate credit information. If you have been renting, we can obtain a rental rating from your landlord as a way of verifying your payment history. Or, we can contact your utility companies, phone service, cable companies or car insurance carrier to obtain a rating on your payment history. Not all loan programs will accept alterna
