How much money do I need to buy a home?
The answer will vary depending on the method of financing you use and
the sales price of the property you qualify for. The most common method of financing used in purchasing a home is
the FHA (Federal Housing Administration) insured mortgage program or
through conventional financing sources such as FANNIE MAE or FREDDIE MAC.
There are several programs available to the general public.
The most common misperception by the average consumer is that the
government actually lends money. The
FHA, FANNIE MAE or FREDDIE MAC is simply the insurer of the loan made by
an investor or lending company. Because
of the insurance on the loan, the investor or lending company can make
loans with smaller down payments. In
lending, the smaller the down payment by the borrower the higher the risk
for the lending source. For most
FHA loans the minimum down payment is 3% of the purchase price or value of
the home. This same type of
insurance is now available on loans exceeding the maximum FHA loan limits
for conventional buyers working with as little as 5% down. There are many programs available.
Landmark Mortgage
can
help you find the loan program that best suits your needs.
Landmark Mortgage
specializes in assisting individuals with obtaining home loans.
We will be happy to discuss your financing options and
can advise you on the best
approach and help you get the house of your dreams!
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