1/19/2024 0 Comments Rocketmortgage reddit![]() ![]() You have to be a veteran for a VA loan, and only certain ruralish locations are eligible for USDA loans (and the best deals are for people with low income), but if those work for you, those are good options with 0% (!) down payment. Since 2/3 of mortgages are conventional, we'll spend more time discussing how down payments and PMI work for these type of loans.Īlternatively, the government guarantees other mortgage products, including FHA, VA and USDA loans, that have reduced down payment requirements the government assumes some of the risk, allowing a reduced down payment, and gets you to pay the rest of it in various ways. Note that there are some conventional mortgages with reduced / eliminated PMI, but they are limited to certain lenders or situations. That's not the end of the world, but it's an added cost to you, so we'll look at that shortly. non-government-backed) mortgages will require Private Mortgage Insurance (PMI) if you don't put 20% down usually you need at least 5%, though. 20% of the price is a popular target this gives the lender a cushion in the event they need to foreclose, since you will take the first 20% of the loss in foreclosure. Lenders want you to have your own money at risk in a house purchase, thus the down payment, which forms your initial equity. This writeup assumes you are qualified for a loan in other ways, such as credit history. Note that this is intended as an overview, and doesn't cover every possible option or alternative available, especially locally to you or specific to your situation. and assumes you are buying a personal residence. So you want to buy a house, eh? Here's some information that can help with that pesky down payment: how much do you need, and where should you get it? This is for US audiences. Here, please treat others with respect, stay on-topic, and avoid self-promotion.Īlways do your own research before acting on any information or advice that you read on Reddit. Get your financial house in order, learn how to better manage your money, and invest for your future. Banking Megathread: FDIC, NCUA, and your cash.Private communication is not safe on Reddit. Scam alert: Ignore any private messages or chat requests. ![]() I know that Rocket has a reputation for higher costs, but this seems like a pretty interesting strategy to capture business. The kicker is that no other lender I've talked to will be able to even make me a competitive offer without bringing out an appraiser first. With the new value, I eliminate my PMI and qualify for a 2.99% interest rate. My application is approved with the numbers I entered. When the Rocket Loan officer called me, she informed me that my credit score is high enough to not require an appraisal. It bumps my initial 5% down payment to 20%. Not high enough to be unreasonable, but likely around $15k higher than the house would appraise for. When I filled out the application, I entered a pretty high number for the current home value. I expected to go with the credit union that I had my original mortgage at, but I applied with Rocket Mortgage just to have a decent rate comparison. I'm shopping around for rates to refinance my house. ![]()
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