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 9/23/2014)

  1. 3 beds, 1 full, 1 part baths
    Home size: 1,653 sq ft
    Lot size: 6,969 sqft
    Year built: 1979
    Parking spots: 2
    Walk Score®: 42
    Broker reciprocity icon
  2. 3 beds, 2 full baths
    Home size: 1,553 sq ft
    Lot size: 8,276 sqft
    Year built: 1979
    Parking spots: 2
    Walk Score®: 46
    Broker reciprocity icon
  3. 3 beds, 2 full baths
    Home size: 1,957 sq ft
    Lot size: 7,840 sqft
    Year built: 2008
    Parking spots: 2
    Walk Score®: 52
    Broker reciprocity icon
  4. 2 beds, 1 full bath
    Home size: 883 sq ft
    Lot size: 5,227 sqft
    Year built: 1944
    Walk Score®: 57
    Broker reciprocity icon
  5. 3 beds, 2 full baths
    Home size: 1,757 sq ft
    Lot size: 7,405 sqft
    Year built: 1976
    Parking spots: 2
    Walk Score®: 43
    Broker reciprocity icon
  6. 3 beds, 2 full baths
    Home size: 1,575 sq ft
    Lot size: 8,712 sqft
    Year built: 1977
    Parking spots: 2
    Walk Score®: 38
    Broker reciprocity icon
  7. 4 beds, 2 full baths
    Home size: 2,240 sq ft
    Lot size: 7,840 sqft
    Year built: 1975
    Parking spots: 2
    Walk Score®: 23
    Broker reciprocity icon
  8. 3 beds, 2 full baths
    Home size: 997 sq ft
    Lot size: 7,405 sqft
    Year built: 1949
    Parking spots: 1
    Walk Score®: 49
    Broker reciprocity icon
  9. 3 beds, 1 full bath
    Home size: 915 sq ft
    Lot size: 9,583 sqft
    Year built: 1955
    Parking spots: 1
    Walk Score®: 69
    Broker reciprocity icon
  10. 3 beds, 2 full, 1 part baths
    Home size: 1,872 sq ft
    Lot size: 3,484 sqft
    Year built: 2005
    Parking spots: 2
    Walk Score®: 32
    Broker reciprocity icon
  11. 2 beds, 2 full, 1 part baths
    Home size: 1,404 sq ft
    Lot size: 1,306 sqft
    Year built: 2012
    Parking spots: 1
    Walk Score®: 42
    Broker reciprocity icon
  12. 3 beds, 1 full bath
    Home size: 1,132 sq ft
    Lot size: 7,840 sqft
    Year built: 1949
    Walk Score®: 57
    Broker reciprocity icon
  13. 3 beds, 2 full, 1 part baths
    Home size: 1,896 sq ft
    Lot size: 9,583 sqft
    Year built: 1971
    Parking spots: 2
    Walk Score®: 31
    Broker reciprocity icon
  14. 3 beds, 2 full, 1 part baths
    Home size: 1,710 sq ft
    Lot size: 2,613 sqft
    Year built: 2007
    Parking spots: 1
    Walk Score®: 55
    Broker reciprocity icon
  15. 5 beds, 3 full baths
    Home size: 1,707 sq ft
    Lot size: 10,018 sqft
    Year built: 1962
    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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