Buying an home is a major life decision.  It does require some preparation.  One of the most common questions I hear is: How much cash will I need to buy a home.  Then answer is that depends on the price of the home and the type of loan.  So let's start with loans....

Generally you can purchase a home in a rural area under USDA with no down payment and if the home has enough equity you can even finance the closing costs.   The USDA loan has some real limitations as it relates to geography areas they are available, your credit scores and the amount you can borrow. 

The next loan that has a low down payment is an FHA loan.  IT is a federally insured loan that has some of the most liberal credit ranges.  That is to say  your credit score can even be below 640 in some cases.  This loan requires a minimum of 3.5% down payment on the home you are purchasing and then they charge you a private mortgage insurance  premium in the form of money added to your loan and a monthly addition to your payment.    The PMI is charged based on the amount of the loan and the term of the loan.   Check their web site for the most accurate information.  

The next type of loan is called conventional loan.  There are typically three  entry points in this type of loan.  The 5% down loan, 10% down, 15% down all of which will have a private mortgage insurance monthly fee and then the 20% down loan which will have no PMI fee.  The later can save you 1-300 dollars per month.

These loan types will make up 90% of the loans folks do to buy a home.  

What type of loan is best for you?  This is a decision based on several variables.  And a test of your real estate agent.  Understanding your specific situation will help the agent recommend the best lender.  IF the agent has only one best lender, be ware!  In lending one size does not fit all.  For example:  I have lenders that will offer closing cost assistance to first time home buyers, or that will offer Medical Doctors a full value no pmi loan, or that can work with reverse mortgages.   We work with lenders that can help fix  your credit and advise you on how to best be ready to purchase a home.  On the other end we have lenders that are experts in Jumbo Loans.  

The point is we have to be prepared with great resources.  Having quality lenders that are able to close on time, are very important to the Stanley Team's offerings.  Who do we recommend?  See the list at /what-jack-likes and then search under the lenders tab.