Friday, May 13, 2011

Down payments

Conventional mortgage loans require minimum of 5% of purchase price down. So if you buy a house for $100,000, 5% of that is $5,000.

FHA mortgage loan require minimum of 3.5% of purchase price down. So if you buy a house for $100,000, 3.5% of that is $3,500.

Rural development(RD) loans may require no down payment.


Don't forget about closing costs though. Most purchase transactions require closing costs be paid up front, at closing.

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