How much do banks typically ask for in a downpayment for a house?

Question

is a 670 credit score with an 806 FICO good? (no heavy trade lines at all)

Answer 1

Usually about 5% of the price of the home.

Answer 2

It all depends on the lender, if you're a first time home buyer, your credit, etc.

They can ask for 0-5% for great applicants (job history, credit history, etc.)

But sometimes they ask as much as 20% down - which can usually be used to "buy down" your interest rate as well.

Your credit score can be 3 seperate numbers - having one be 670 and another be 806 is highly unlikely. Usually the 3 numbers are much closer together, and most lenders will choose the middle score.

Answer 3

That is not a bad credit score. 600-800 is the average American credit score these days.

Usually down payment is 5%-10% and sometimes 20%.Say a mortgage is given of 95,000.00. 10% down payment on that would be $62,000 up front. I was just checking with my bank on what I qualify for on mortgage. To me that's ridiculous. What you want to do is see how much you pre-qualify for on mortgage. This is not an obligation to obligate yourself on a loan. It's just to see how much you qualify for and with that information you easily can search in your means. It is determined based on your employment history, current income, other assets, and other income fulfillments.

There are mortgage payment options with no money down payment. Check with your bank as your institution can provide you a no money down option rather than going through someone outside. I had a better pre-qualifying option for the no money down payment option through my bank. Be careful of those outside lenders, they are tricksters. You also want something without an adjustable rate variable. Adjustable rate variable will be an APR 1/10 so in one year of a 10 year loan it could increase per month and thats where they get you and why there are so many forclosures. Stick with a fixed 30 year loans. I hope I helped.

Answer 4

Im in the process of buying a house right now and it depends on whether it is your first time buying a house. If so you can get a first time homeowners loan with little to 1% down. Closing costs can get a little heavy depending on who you go through to process your loan, could be 3 to 5%. Your credit score would pass for a first time homeowners loan. But, banks like for you to have 20% down on a home, which if you havnt just sold a previous home, that could be a pretty hard deal. If you dont have the 20% down they normally require you to pay PMI (Private Mortgage Insurance) unitl you have payed 20% of your principle which could be 10 years on a 30 year mortgage at $100 dollars a month or higher on top of your mortgage.

Answer 5

You might want to call a lender who can get you pre-approved. It only takes a few mintues and once you are approved, you can still use any real estate agent you want.  I usually see listings asking for 3% on average. Some types of financing help you with a lot of the costs. Not to mention there are many sellers who are willing to help with closing costs. Find an agent who is willing to find these deals for you. If you talk to a real estate agent who insists you have to put a lot down no matter what house you want, drop that agent and find another.

Answer 6

In order to qualify for a "short sale" you must have a minimum of 5% as a down payment.

More typically, however, banks ask for 10% to 20% down payment and this can sometimes be negotiated.

Answer 7

These days, with the housing market so bad, you probably can get away with zero down.  However, usually 10% down is a good idea.

A 670 credit score is above average, but nothing to write home about.