Boston condo buyers, today we’re going to discuss the topic of a down payment for a Boston condo..

So why do you need a down payment? One reason Boston lenders require a down payment is that they want to be certain that the borrower is financially invested in the Boston condo. In a lender’s mind, the larger the down payment, the less likely a buyer is to go into foreclosure on the loan.

Down payments may vary depending on the type of loan you’re seeking. A variety of financing options are available from conventional mortgages to government insured FHA and VA loans.

  • A 20 percent down payment is usually the industry standard for a conventional loan. For example, a 20% down payment on a $300,000 Boston condo would be $60,000. While this can seem like a lot of money, a significant down payment creates instant equity for the buyer abd in most cases, not be required to purchase private mortgage insurance (PMI) thus saving money on your monthly payments.
  • A lower down payment of 5 to 10 percent is sometimes possible, but will often require mortgage insurance. Private mortgage insurance, or PMI, will drive up the monthly payment but protects the lender in case of foreclosure. Once the loan to value ratio is 80 percent, you may ask to have it discontinued and the monthly payment will drop accordingly.
  • An FHA loan may allow some buyers to have a down payment as low as 3.5 percent. An FHA loan is a popular choice for potential Boston condo buyers who may not have stellar credit or a large enough down payment for a conventional loan. These loans are insured by the government and the borrower will pay mortgage insurance directly to the program

Watch this video for more information on down payments for a Boston condo

How Much Down Payment Do You Need?

 

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Author Profile

John Ford
John Ford
EXPERIENCE

Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs



In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.



HISTORY

For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.

AREAS COVERED

Back Bay

Beacon Hill

Charles River Park

Downtown/Midtown

North End

South End

Seaport District

South Boston

Waterfront

Brookline

Surrounding Communities of Boston
Contact
John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.




John Ford
Ford Realty Inc
137 Charles Street
Boston, Ma 02114

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