How much of a down payment is needed when buying a Minnesota house for sale
When you search Minnesota houses for sale you’ll want to know if you can get pre-approved and for how much, like what’s the price point.
Once you know that number you can know what your down payment is that’s needed and then add earnest money, inspection and appraisal to the list of other expenses.
As far as how much money you need upfront of course the sales price and pre-approval matter, but how you buy the home matters a lot also.
Whether you buy with seller financing contract for deed or on a lease option. It also matters if you get a VA loan, USDA, an FHA loan, or bank loan with really poor credit.
VA and USDA government subsidized type of programs offer 100% with pretty low credit scores.
FHA is going to be looking at 3.5% down
And only require a 580+ score in some cases.
Lease option could be 1st months rent, deposit and $5000 to $10,000 option money.
This is especially true if you want an agent to help you find the property and do all of the negotiating and show houses etc. don’t think of option money as a down payment because it’s usually non-refundable, but applied to purchase IF you eventually purchase with bank refinancing, or refinance.
As far as having really poor credit with a bank or going with a contract for deed you are looking at 10% to 20% of a down payment to be allowed to buy.
If you have a foreclosure, short sale, bankruptcy or loan mod in the past 3 years it will generally be hard to get bank financing. A big enough down payment may get something unconventional or get you a contract for deed.
When you have more questions reach out on messenger for a live chat, I’ll wait to hear from you.