User uShare Login | Register
Login
Register

Along with posting photos, videos, and stories, your uShare account lets you post Classified Ads, recipes on What's For Dinner, and Announcements.


45° View Weather Current Conditions Sioux Falls Change Location
Set Weather Options

RADAR LOCATION

TEMPERATURE LOCATION

Share your Photos, Videos, and Stories on uShare! Click here to get started.

KELOLAND.com | Sioux Falls News & Weather, South Dakota News & Weather, Minnesota and Iowa News

[0] My Saved Articles
Find local businesses
on the KELO Pages!

 

Down Payments On A Home

March 24, 2011, 9:50 PM by Angela Kennecke

Down Payments On A Home
SIOUX FALLS, SD - You may have heard you need 20 percent down to buy a home. And that's true if you want to avoid paying private mortgage insurance or you're buying a very expensive home.

But the fact is, most people can get into a home for five percent down or less, some even with no money down.

Ivy and Peter French just closed on their first home and it only cost them $45. 

“We had to have $500 in earnest money and $45 for closing,” Ivy French said.

The Frenches started looking for a home after getting a small inheritance, but were pleasantly surprised they didn't have to tap into it.

“It's been really cool to have a lot of leftover funds to purchase stuff for the house. That was just crazy and it's nice because we really feel comfortable with our monthly payment because we have some cushion too. We have some time to figure out what we need to do to make this work," Ivy French said.

"Ivy and Peter did the right thing. They contacted the bank, they did their research, came into the bank to figure out what their options were so when they went out looking for a home they knew exactly pretty close to what they would need out of pocket the time they were done," First Bank & Trust Mortgage Loan Officer Brian Spaans said.

The reasons the Frenches were able to get into a home so cheaply is because they qualified for South Dakota Housing's first time homebuyer's assistance. And they also got a thousand dollar grant from their bank. Mortgage Banker Brian Spaans says there are plenty of ways for people to come up with the down payment.

"That doesn't necessarily have to be money you have today. We have a lot of people get gifts from family members, that's allowed. We have people who take out loans out of 401(k) s, that's allowed. We have people that maybe have a vehicle paid for, they want to take out loan on vehicle use for down payment, that's also allowed," Spaans said.

Conventional loans require five percent down, while FHA financing minimum is 3.5 percent down.

People who qualify for rural development or VA financing or first time buyers can qualify for zero percent down.

But people who put down less than 20 percent will pay for private mortgage insurance.

"That's true, but if you think of how long it might take the average person to save $20-40,000 that could be several years of going without owning a home," Spaans said.

Private Mortgage Insurance runs between $20 and $200 a month, depending on the size of your loan. The city of Sioux Falls community development also has a homebuyer's assistance program based on income.

South Dakota Housing

Sioux Falls Community Development

Previous Story

Next Story


Comments







 
Find Local Businesses on KELO Pages!

You may also like

Body Of Missing Realtor Found At Arrowhead Park

10/18/2014 3:22 PM

The body of a missing Sioux Falls realtor has been found.

Full Story
SFPD Search For Missing Realtor

10/18/2014 11:45 AM

The Sioux Falls Police Department is asking for the public’s help in finding a missing woman.

Full Story
Body Of Pam Kneip Found After Search

10/18/2014 10:00 PM

Hundreds of volunteers gathered by an entrance at Arrowhead Park Saturday as police conducted a search for a missing woman.  The friends, family ...

Full Story | Watch
Police Release Names In Deadly Sioux Falls Crash

10/18/2014 8:19 PM

Police say two Sioux Falls men died in a crash Friday evening in the western part of the city.

Full Story
Three Sushi Restaurants Close After Owners Dispute

10/22/2014 10:05 PM

Your options for sushi in Sioux Falls have just been cut by three. The restaurants mysteriously shut down this week, leaving customers and employees a...

Full Story | Watch


Events