Home Buyer Guide to Portland Real Estate Part II: The Down Payment

closing costsHome Buyer Guide to Portland Real Estate Part II:  The Down Payment

In Part I of the Home Buyer Guide to Portland Real Estate, I wrote about the general process.  This article is a little more specific and we’ll discuss the down payment.

Keep in mind that in Part I it was stressed of the importance to initiate a talk / set up a consultation with a loan originator, lender.  This does not mean you shouldn’t know about the down payment, which is a very important part of a real estate purchase.  Your lender will ask you about your down payment and with that conversation, they may help you determine which loan product is the best for you, and your current financial situation.

If you are not paying with cash, you will have to borrow funds, i.e., obtain a loan and have a mortgage.   This home buyer guide to Portland Real Estate is about buyers who will finance and need a down payment.

Do Down Payments Vary?

Down payments vary depending on the type of loan the buyer is qualified for, and might be interested in.   Here are the most typical types of loans and with EACH loan, there are down payment requirements:

  • Conventional Loan — usually requires a 10% down payment.  The 10% down payment is based on the final sales price of the home.  But, you can measure it, roughly, with the current list price.  I mention this, because the list price MAY NOT BE what I am able to negotiate for my client.  [EXAMPLE:  List Price:  $240,000.   Offer:  $235,000 (accepted) = $23,500 down payment.] NOTE:  There are some conventional loans products that require a 3% down payment.
  • FHA Loan – there is a 3.5% down payment requirement.  The FHA loan is administered by HUD.  The Federal government DOES NOT LOAN MONEY!  They will only “guarantee” the borrower’s loan, which is enticing to lenders.
  • VA Loan – this is a 0% down payment program offered to Veteran’s

With EACH loan, there are specific requirements.  Your loan officer will discuss these requirements in more detail with you.  I can talk about them too, so please feel free to ask me.  Although I am not a lender, I do know “of” the loan programs and some of the requirements.  But, your best bet is to find a competent lender who will explain the differences to you, and what makes the most cents sense to your particular situation.

Related Article:  Home Buyer Guide to Portland Real Estate Part I: The General Process

 

Gone Are the Days of the 80/20 Loan

I’ve been an Exclusive Buyers Agent in the Portland Metro area for close to 15 years . . . and I’ve work in many markets.   There used to be a time . . . and thankfully it’s over . . . where buyers could borrow 80% of their loan amount AND take a second mortgage for the remaining 20%.  Basically, this was a 0% down payment set up.  With loose lending guidelines, buyers were doing this type of loan and then would refinance.  It was a terrible way to buy a home and I’m glad this type of loan is no longer available.

In Part III of the Home Buyer Guide to Portland Real Estate I will talk about How and Where to Get Down Payment

The Home Buyer Guide to Portland Real Estate Series:

Homes for Sale in Beaverton OR

See all Real estate in the city of Beaverton.
(all data current as of 4/17/2014)

  1. 3 beds, 2 full baths
    Home size: 1,568 sq ft
    Lot size: 7,840 sqft
    Year built: 1978
    Parking spots: 2
    Walk Score®: 25
    Broker reciprocity icon
  2. 4 beds, 2 full baths
    Home size: 1,682 sq ft
    Lot size: 3,049 sqft
    Year built: 2002
    Parking spots: 2
    Walk Score®: 20
    Broker reciprocity icon
  3. 3 beds, 1 full bath
    Home size: 1,140 sq ft
    Lot size: 7,840 sqft
    Year built: 1949
    Parking spots: 1
    Walk Score®: 42
    Broker reciprocity icon
  4. 4 beds, 2 full baths
    Home size: 2,324 sq ft
    Lot size: 17,859 sqft
    Year built: 1936
    Parking spots: 1
    Walk Score®: 69
    Broker reciprocity icon
  5. 3 beds, 1 full bath
    Home size: 1,008 sq ft
    Lot size: 8,712 sqft
    Year built: 1968
    Parking spots: 1
    Walk Score®: 43
    Broker reciprocity icon
  6. 4 beds, 2 full, 1 part baths
    Home size: 3,672 sq ft
    Lot size: 5,662 sqft
    Year built: 2014
    Parking spots: 3
    Walk Score®: 48
    Broker reciprocity icon
  7. 3 beds, 2 full, 1 part baths
    Home size: 1,672 sq ft
    Lot size: 2,178 sqft
    Year built: 2003
    Parking spots: 1
    Walk Score®: 17
    Broker reciprocity icon
  8. 3 beds, 2 full, 1 part baths
    Home size: 2,460 sq ft
    Lot size: 5,662 sqft
    Year built: 1993
    Parking spots: 3
    Walk Score®: 22
    Broker reciprocity icon
  9. 4 beds, 2 full, 1 part baths
    Home size: 1,760 sq ft
    Lot size: 9,147 sqft
    Year built: 1971
    Parking spots: 2
    Walk Score®: 60
    Broker reciprocity icon
  10. 4 beds, 3 full baths
    Home size: 1,852 sq ft
    Lot size: 10,018 sqft
    Year built: 1978
    Parking spots: 2
    Walk Score®: 45
    Broker reciprocity icon
  11. 4 beds, 2 full, 1 part baths
    Home size: 2,216 sq ft
    Lot size: 5,662 sqft
    Year built: 2004
    Parking spots: 2
    Walk Score®: 60
    Broker reciprocity icon
  12. 3 beds, 2 full, 1 part baths
    Home size: 1,613 sq ft
    Lot size: 2,613 sqft
    Year built: 2003
    Parking spots: 2
    Walk Score®: 32
    Broker reciprocity icon
  13. 3 beds, 2 full, 1 part baths
    Home size: 1,538 sq ft
    Lot size: 3,920 sqft
    Year built: 1999
    Parking spots: 2
    Walk Score®: 49
    Broker reciprocity icon
  14. 4 beds, 2 full, 1 part baths
    Home size: 2,425 sq ft
    Lot size: 8,276 sqft
    Year built: 2001
    Parking spots: 2
    Walk Score®: 37
    Broker reciprocity icon
  15. 3 beds, 2 full, 1 part baths
    Home size: 3,238 sq ft
    Lot size: 9,583 sqft
    Year built: 1993
    Parking spots: 2
    Walk Score®: 35
    Broker reciprocity icon

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Buyers Agent Portland - Buyer Focused ~~ Buyer Results

Buyers Agent Portland, LLC is an Exclusive Buyer Agency serving the Portland Metro real estate market since 1999.  The brokerage only represents Home Buyers and never home sellers. If you’re looking for a home anywhere in the Portland Metro area, there is no better representation than an Exclusive Buyers Agent.  We assist investors, folks relocating to Portland area, those moving to Portland in-state, home buyers who are looking to down-size or move-up and of course . . . love working with first-time buyers.  I help Buyers in the Portland Metro market find exactly what they need in the Tri-County markets of Clackamas County, Multnomah County and Washington County, as well Portland cities including but not limited to:

When you’re ready, talk to an Exclusive Buyers Agent.

Exclusive Buyers Agents do not work at real estate brokerages that take listings!

An EBA’s fiduciary duty is: 100% BUYER REPRESENTATION . . . 100% of the Time.

Carla Muss-Jacobs, ABR, CEBA, e-PRO, Realtor
Principal Broker/Owner

Buyers Agent Portland LLC

Office: 503.524.2560
Direct: 503.810.7192

Buyers Agent Portland ~~ 100% BUYER REPRESENTATION . . . 100% of the Time

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All information provided is deemed reliable but is not guaranteed and should be independently verified.

This content last updated on 4/17/14 6:47 AM PDT. Some properties which appear for sale on this web site may subsequently have sold or may no longer be available.

The content relating to real estate for sale on this web site comes in part from the IDX program of the RMLS™ of Portland, Oregon. All real estate listings are marked with the RMLS™ logo, and detailed information about these properties includes the names of the listing brokers.

Listing content is © 2014 RMLS™, Portland, Oregon.

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