Posted on: 22nd Feb, 2011 03:31 pm
Hi,
I have the deed to the property upon which I plan to have a small house built, cost will be approximately $140,000.00. The current value of the lot (based on the property tax assessment) is about $14,000.00. I would like to have the property used as collateral for the down payment. Is 10% down enough nowadays for a conventional 30 year fixed loan? My 3 credit scores range from 824-921, I only have a car payment and my current rent, no other debt at all, I have several credit cards I use a few times a year, but no balances on them. Income is 80K per year, same job for last 10 years.
Is the deed to the property acceptable for the down payment? Will I need to do an fha loan since I do not have 20% down? I do have some savings, but wanted to use it for closing costs, appliances, etc.
Thanks for your help/advice.
I have the deed to the property upon which I plan to have a small house built, cost will be approximately $140,000.00. The current value of the lot (based on the property tax assessment) is about $14,000.00. I would like to have the property used as collateral for the down payment. Is 10% down enough nowadays for a conventional 30 year fixed loan? My 3 credit scores range from 824-921, I only have a car payment and my current rent, no other debt at all, I have several credit cards I use a few times a year, but no balances on them. Income is 80K per year, same job for last 10 years.
Is the deed to the property acceptable for the down payment? Will I need to do an fha loan since I do not have 20% down? I do have some savings, but wanted to use it for closing costs, appliances, etc.
Thanks for your help/advice.
Hi MIgirl!
Welcome to forums!
In order to get a conventional loan, you should pay at least 20% down payment. If you're unable to offer 20% down payment, the lender will ask you to go for private mortgage insurance (PMI). You can go for a FHA loan if you don't have 20% down payment.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
In order to get a conventional loan, you should pay at least 20% down payment. If you're unable to offer 20% down payment, the lender will ask you to go for private mortgage insurance (PMI). You can go for a FHA loan if you don't have 20% down payment.
Feel free to ask if you've further queries.
Sussane
are you looking for a loan to build the property? If so that type of loan is very difficult to find and will require more than 10% down - in some cases they will allow you to use the value of the property to the as completed value of the project. I honestly do not know what the current guidelines are for these loans since I have not seen a bank offering them in almost 3 years - we did a lot of them in the past and that is how they worked then - if you can find it please post up where. FHA will not allow for construction they will only lend on a completed home
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