Whenever you make a large purchase, such as a house or a car, you will likely need to make a down payment. How much down payment do you need? It depends on the purchase and who is giving you the loan. What happens if you change your mind on your purchase? Will you lose your down payment? Learn the ins and outs of down payments here.
Lenders want to see buyers put down their own down payment, otherwise it could be seen as mortgage fraud. There are legitimate ways for a seller to assist a buyer in the purchase of a home and avoid possible fraud. Some loan programs will allow a seller to contribute 3 percent or even 5 percent of closing costs that might be paid by a buyer.
A home buyer asks about breaking a home sale contract after he learns about a cracked plaster wall. The seller wants to fix the problem but the buyer still wants to terminate the contract. The buyer does not want to fulfill the contract and buy the home with the structural issue, even after it is fixed. The buyer may lose his earnest money depending upon the terms of the contract.
If you're looking for zero down mortgage but don't qualify for a VA loan, you could look into the USDA Rural Development Guarantee Loan Program. When shopping for homeowners insurance, be sure to look at more than price because you may miss out on extra coverage that could save you money in the long run. And if you're a home buyer or seller, be cautious about having your attorney share the results of a home inspection.
Mortgage lenders require appraisals before issuing home loans. What happens if the home you want to buy appraises lower than what the seller wants? It depends on the contract. The buyer may lose his earnest money if the home does not appraise out and the seller is unwilling to lower the price. It's up to the buyer to cancel the home buying contract if the contract permits him to do that.
When you're selling a home and a buyer wants to buy the property as a gift is there anything you need to watch out for? Should the earnest money, which may become a down payment, be handled in a special fashion? It's critical that the transaction be handled with care to ensure estate planning and gift tax considerations are taken into account.
To get a VA loan you have to be a veteran. VA home loans may be the only true zero down loans at the moment. You have to meet specific requirements to qualify for a VA home loan. Another home loan option with low down payment requirements is the FHA loan.
Mortgage requirements have become stricter for first time home buyers. Lenders have tightened credit requirements for first time home buyers, making it more difficult to qualify for a mortgage loan. To qualify for a mortgage loan, first time home buyers need a credit score of at least 660 unless they try for an FHA loan.
A buyer says he's having trouble getting earnest money back from his builder after deciding not to buy a home. The buyer can sue the builder for breaching the construction contract.