[FVM3]

My wife and her family will buy a house within short and i would like to ask that how many percent down payment are they looking forward to?

[NBRider88]

That depends on the type of loan you would like/can get. If you are a prime borrower (a+ credit, solid income, low debts) and would like the lowest rate available, you would put 20% down or more. If you do an FHA loan, 3.5% down is all you will need. Little higher rates and you would have to pay MIP (mortgage insurance premium) as well.

[FVM3]

i never heard of FHA loan, does it request very high credit score? my wife's credit score is around 730

[NBRider88]

FHA = Federal Housing Administration

Basically a Govt. loan fully backed and insured. It has been around since I believe, 1934

As far as credit score, it is more lenient than for Prime loans. They keep bumping it up, but currently you only need a 620 mid score. If you have stable income/jobs/down payment of 20%, you would want to go with conforming loan (prime) and get a better rate and no MIP. If you don't have the 20%, FHA is your best bet. Both FHA and conforming loans can be 30 years fixed


I would read up on it: You can get the basics of an FHA loan at wiki

http://en.wikipedia.org/wiki/FHA_insured_loan

anything else, just ask!

[FVM3]

thanks so much for your info, my wife can get that 20% out so she will get the prime loans

[NBRider88]

Not a problem. If you have any other questions or need my help, let me know.

[1cleanm6]

No one here will be able to give you an answer, except a lender, there is too many variables that need to be considered.

1. FHA loan , wont be possible if its a second home, wont be possible if its not in good condition.

2. Loan quidelines have become much tougher, lot of changes about two weeks ago. You need 20% plus FULL docs atleast.

They should take some time and visit a lender and they will break everything down, and at same time let them know what they qualify for.