How much money do I need to buy a home?

 

 

.  You have requested information on "How Much Money Do I Need To Buy A Home?"  The answer will vary depending upon 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 utilizing the Federal Housing Administrations or FHA insured mortgage program or through conventional financing sources such as FANNIE MAY or FREDDIE MAC.  There are several programs available for the general publics use.  The most common misperception by the average consumer is that they think the government actually lends money.  The FHA, FANNIE MAY or FREDDIE MAC are 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. The loan professional that has provided this information to you will be happy to discuss with you your financing options.