Question by jamaicabound123123: What are loan options for a low money down mortgage?
I found a duplex I’m interested in buying. The place costs $ 79,000. I can put down 5% of that but that’s all I have to put down.
Is it possible to roll closing costs up into the loan? I keep hearing about FHA loans but are there any other loan options that allow you to put a low down payment of 3.5% to 5%?
Best answer:
Answer by ibu guru
FHA is the only loan option now with an official “low-down” of 3.5%. You will also need closing costs in cash, plus reserves of at least 3-6 months. However, we are finding that property deals with less than 20% down are developing “last-minute hitches” at a rather alarming rate, and these deals are not getting funded by the closing date even though they were supposedly “approved.”
If you only have $ 4000 cash, you only have about a third of what you need to do FHA (if it goes through), and only a fifth of what it really takes to get the deal done.
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