Fixer Upper Down Payment Advice

Doug is shopping around for his first house. He really would like to get a house he can put his own signature on, being in the kitchen industry, and do a little fixing up. Heâ??s afraid that if he finds a house he likes, he will spend all his money on a good down payment to get a good loan. Then he wonâ??t have anything left to put into the house. His question to Robert Palmer is whether there are any loans that can help in his situation.

Many people are not aware that there are 5% and 10% down programs for situations like Dougâ??s. There are also FHA programs with 3.5% down. RP Funding offers the easiest, best FHA Loan around! The best bet in a situation like the one above is to look at a lower down payment. There really arenâ??t competitive rehab loans these days. Back in 2005/2006 it was pretty easy to buy a house, do the repairs, and the bank would escrow or lend that money based on the future value. Those programs are few and far between now and the few that are available are so much more expensive. Banks that offer them know they have a niche so youâ??re better off going with a lower down payment.

Quick Tip: Negotiate for the seller to pay for most of your closing costs.