Is a 20% down payment the standards in Union City NJ ?
By Tony Busanich, 1-4 FAMILY HOME LOAN SPECIALIST
Is a 20% down payment the standard for first time home buyers in Union City NJ?A 20% down payment is anything but standard. Making a smaller down payment does involve some form of mortgage insurance (MI) but not with some program. This is a fee that may be paid to limit the lender's risk when there is a lower down payment when buying your mortgage insurance (MI).Our loans are available with as little as 3.5% down payment. The cost of the mortgage insurance maybe paid by the bank depending on the borrower's credit score and location. Borrowers with lower credit scores may be better off with an FHA loan. The disadvantage is that the borrower cannot cancel the MI for an FHA loan. The only way to get out of it is by refinancing into a conventional loan.It is never a good idea to take up t...