I’ve been asked a couple of times in the past few days: How much of a down payment do I have to have? Do I have to have 20%? 10%?
Neither. My answer is usually “3.5%. You should call Rick.”
Unlike recent years when there were hundreds of mortgage companies offering tons of different loans, now there are only a few banks offering a few loan products. There’s Bank of America, Wells Fargo, and following behind, Chase.
You have to put down at least 3.5% as your down payment. That will qualify you for the highly popular FHA loan. Can you put more down? Yes. Should you? Not necessarily. “You should call Rick.”
We never did FHA loans in San Mateo because the maximum they would loan was too low. You couldn’t buy a house here for what they were willing to give a loan for. That’s all changed and FHA’s now the go-to loan in many cases.
Just like whether or not now is the time to buy a home is a question to be answered by the individual, so is how much you should put as a down payment. And now you know my answer: Call Rick.
Rick Vujovich is my go-to mortgage rep with Wells Fargo Home Mortgage. He can be reached at most any time – even on vacation in Hawaii on his cell: 415-999-4474.