Downpayment required to buy house?

Hey. I bought a house about 2 years ago and have been planning on selling it to a friend because I've moved away for college. I was going to sell it at what I owe on it.





He's saying that in order to get a mortgage, though, he has to have 20% down. That's ridiculous! Is it really a fed requirement?Downpayment required to buy house?
FHA is the way for him to go. 3.5% down but it can be a gift, but not from you, the seller. When you write the contract you can put in it that you will pay his closing costs %26amp; pre-paid items. Contract sale price or appraised value, which ever is less, is what will be used to determine the loan amount.





To clear up a misconception...FHA loans are not just for first time homebuyers. You just have to owner occupy.Downpayment required to buy house?
A lot of mortgage companies now probably do require 20% down because of the current economic situation.





If your friend is a first time homebuyer, I would suggest that he look into the FHA. They have a program that requires only up to 5% down to qualify for a loan.





Best of luck to you!
No not really. It is a bank requirement in the current economic scenario. You are more likely to make payments on a house if you have some equity in it.
just keep the home in your name and he can move in and pay you rent to cover the payments and little extra on the side for your self. wants its payed off transfer the home deed to your Friend
NOpe 3.5-5% with good credit and good job history will get you FHA loan. 20% down is required to avoid paying PMI, or for those with lousy credit.
No. The banks tightened up their requirements for mortgages. Even with a 740, you still need 10% down.





Have you not seen the news in the last 2 years?