You’re probably wondering “how much should I put down on a house” especially right now. It all depends on the loan type and your capabilities. Our founders get down to the surface and explain how much you should be putting down. Check it out!
Transcription
Paul Apostolakis 0:00
So how much do I have to put down on a new house? So if I’m a new homebuyer right now?
Salvatore Cusumano 0:06
If you’re a first-time buyer, 3%. And if you don’t qualify for a conventional loan, three and a half with FHA. And if you’re a veteran, zero, or if you find a rural development loan, zero, I mean, there’s a lot of questions that we ask that could potentially unlock one of those programs for you. But really, you know, I would say, realistically, you need 3%. But, I think right now, people fail to realize the closing costs. You know, that’s one of the big things.
Brad Weissgerber 0:37
That’s always, people don’t ever think about the closing costs. I don’t think that’s just right now.
Salvatore Cusumano 0:41
Well, but right now, it’s almost impossible to get a seller to pay for them, you know, unless you already get under contract, which is a huge risk if you don’t have your like, let’s say okay, $200,000 house, right? 3%, six grand, typically, in a transaction, right, let’s just say you have another $3,000 of actual closing costs, fixed cost, right? Title work, appraisal, lender fees, recording fees, right, probably three grand $3,500. Then you have a year of taxes and a year of insurance between at least in Southeast Michigan, right? Yeah. Where you have to come up with. I mean, like, for example, right now taxes are the large tax installment in most counties or cities is due in like a month. So you’re basically bringing a full year of that upfront, just in your escrow, then you have to pay back the seller for the taxes they’ve already paid. Right? So it always works out to about a year of taxes and a year of insurance, let’s say $1200 bucks. So let’s just say the taxes are 3,600 bucks. 1,200 bucks for insurance, right? That’s 4,800 bucks. Right? So plus another three grand. I mean, yeah, you’re looking at more than what your down payment is for your closing costs, right? Plus, that six grand I mean as a buyer, you better have 13, 14 grand right?
Check Out the Full Episode: The Omega Boys, Omega Lending Group – Episode 152┃Inside Real Estate
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