First Time Home Buyers With Options For A Low Down Payment
First Time Home Buyers With Options For A Low Down Payment
Programs:
- 97% or 95% financing with 3% down payment with an option of the seller agreeing to pay up to 3% seller assist/concession towards the buyer’s closing cost.
- 96.5% financing with 3.5% down payment with an option of the seller agreeing to pay up to 6% seller assist/concession towards the buyer’s closing cost.
Scenario
Here is an example – “Sally” and “Robert” have been renting for 4 years paying $1700/month plus utilities or $20,400/year. They continue to rent because they thought in order to purchase a property, 20% down payment is required in addition to an average of $10,000 in closing cost. They were struggling to save and felt overwhelmed with the high cost expectation to become a property owner. After research and asking questions, they learned of several financial programs that would change their lives from living as renters. Sally and Robert found solutions to a problem that many first time home buyers are facing; not enough money to purchase a home. Read more …..
Scenario of monthly payment & closing cost at 97% financing
If Sally and Robert find a property with a purchase price of $250,000, 3% down payment ($7,500) and seller assist/concession of 3% of the purchase price. Term for 30 years or 360 months mortgage loan, real estate taxes are est. $3800 annually and home owner’s insurance est. $800 annually. See below for the example. . . .
- Loan amount = $242,500
- Estimated interest rate 4.625% fixed rate and
- Estimated annual percentage rate 5.925
- Estimated monthly payment = $1,246.82 **
- Private mortgage insurance est. = $90.94 **
- Home Owner’s insurance – est. monthly = $66.67
- Real Estate taxes – est. monthly = $316.67
- Total est. monthly payment = $1,721.10
Closing cost at settlement on a purchase price of $250,000
- Title fees est. = $2000
- Transfer tax typically 1% of purchase price in the Delaware Valley Region,
Pa = $2500 - Lender fees est. = 0 to $900 if applicable
- Credit report fee est. $37.50 to $60
- Appraisal Fee = $500
- Setting up escrow for est. taxes and insurance = $4600
- Total est. closing cost = $9,637.50
- Seller assist/concession = ($7,500)
- Total est. closing cost at settlement = $2,137.50 (not including the 3% down payment and 12 months of home owner’s insurance premium and inspections)
**The rate and fees are subject to change without notice.
Scenario of monthly payment & closing cost at 95% financing
Purchase price of $250,000, 5% down payment ($12,500) and seller assist/concession of 3% of the purchase price towards the borrower’s closing cost with a term of 30 years or 360 months @ a rate of 4.625% interest rate and 5.925% annual percentage rate. The real estate taxes are $3800 annually and home owner’s insurance is $800 annually.
- Loan amount = $237,500.00
- Estimated interest rate 4.625% fixed rate
- Estimated annual percentage rate of 5.925%
- Estimated monthly payment = $1,221.08
- Private mortgage insurance est. = $186.04
- Home owner’s insurance monthly = $66.67
- Real Estate taxes monthly est.= $316.67
- Total monthly payment = $1,790.46
Closing cost at settlement on a purchase price of $250,000.00:
- Title fees est. = $2000.00
- Transfer tax typically 1% of purchase price in the Delaware Valley Region, Pa = $2500.00
- Lender fees est. = 0 to $900 if applicable
- Credit report fee est. $37.50 to $60
- Appraisal fee = $500
- Setting up escrow for est. taxes and insurance = $4600
- Total est. closing cost = $9637.50
- Seller assist/concession = ($7,500)
- Total est. closing cost at settlement = $2,137.50 (not including the down payment and 12 months home owner’s insurance premium and inspections)
**The rate and fees are subject to change without notice
