Ruth Mills Team
San Diego Realtor
Welcome to the Ruth Mills Team website FAQ section, where we try to answer some of the questions most asked by our clients. If the information to the right does not provide a satisfactory answer to your question,
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More Frequently Asked Questions
Real Estate 101
How much will I have to put down to secure a loan to buy a home?
Down payments typically range from 3 to 20 percent of the pourchase price of the home, depending on your credit score, the lender's policies and the overall lending environment at the time. Home loans insured by Fannie Mae or Freddie Mac typically require lower down payments than non-insured loans.
What if I don't have enough cash to cover a down payment?
Coming up with a down payment is often the hardest part of obtaining a mortgage, especially for buyers with great credit scores. One way around this problem is to borrow from a 401(k) plan or IRA, though it's important to understand the tax consequences behind thiose moves. Some homebuyers hit up friends or family for down payment money, either as a loan or a gift.
Document Your Down Payment
Documenting that the down payment comes from your savings and that you will have savings and/or assets over and above the down payment gives the lender confidence in your strength as a borrower and your ability to repay the loan. Take extra care to document the sources for any monies to be used for the down payment or closing costs.
This information is provided as a service. As every situation varies, it is strongly advised to seek counsel from independent tax advisors, tax attorneys, and/or CPAs.