Saturday, June 1, 2024

Cash Needed Chart

Here’s a handy chart to help understand how much cash is needed in the bank to purchase a house. Alternatively, you can identify which houses match your savings. Contact your preferred lender to understand what works best for you.

In Texas, real estate transactions with a mortgage handled through a title company normally require closing costs from 2.5% to 3%. Cash transactions cost less. Sellers can contribute toward the closing costs for any loan.

Conventional Loans require a down payment of at least 3% for well-qualified buyers. Many Conventional Loan lenders prefer to have a 5% down payment. Private Mortgage Insurance (PMI) is a fee paid to the lender of a Conventional Loan until the principal is less than 22% of the loan. There is no PMI if 20% or more of the purchase price is paid at the beginning of a Conventional Loan.

Federal Housing Administration (FHA) loans require a minimum of a 3.5% down payment. FHA loans have a Mortgage Insurance Premium (MIP). The MIP lasts 11 years if a down payment of 10% or more is paid at closing. Otherwise, a MIP will be required until the completion of the loan.

All Veterans Administration (VA) loans and United States Department of Agriculture (USDA) loans in rural areas allow for $0 down payments. However, both of these loans require closing costs.

I've Got Your Six!

Mark M. Hancock, GRI, MRP, AHWD
REALTOR, New Build certified

#DFWmark #REALTOR #calculator #buyers #cash #mortgage #conventional #VA #USDA #MortgageInsurance

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Welcome to the DFWmark Blog!

Welcome to the DFWmark Blog! This is a collection of content by Mark M. Hancock, a REALTOR with Keller Williams North County in Celina...