when getting a conventional loan?

[oracles]

What is the least amount can you have as a downpayment?  I know FHA it is 3% but with a conventional, can you give a 5% downpayment, if not what is the least % amount? thanks

[BrianB_The_Loan_Professor]

3% still in some cases -

5% in most cases 10% in a declining market

We dont see nearly as many conventional loans with higher LTV's these days as the MIP on FHA is less

We did see better pricing today for conventional though and they had been staying pretty much the same

Brian

[BrianB_The_Loan_Professor]

Oh and FHA goes to 3.5% Jan 1

[oracles]

thanks Brian, so if i went to a bank, some banks will let you just put 3 or 5% as a downpayment. Just trying to get clarification. Also, can you just explain what is earnest money? thanks

[BrianB_The_Loan_Professor]

You have to qualify for the Flex 97% loan to get the 3%

the 5%  is where you will probably end up

Earnest money is what is submitted with your offer to show you are serious - it is money that is held by escrow until the close - it can be at risk if you default. The amount varies with price and region - it is not set in stone

Brian

[oracles]

thanks brian, you have been a wealth of knowledge. I appreciate your patience and teachings.