REVISED 5% DOWN

Jan 16

Strictly speaking it is 5% for properties $500,000 and under

And, it used to be a hard line, 20% downpayment for all properties over $1M - no more.

The waters have now been muddied!

Are you a First Time Home Buyer?

Are you buying a New Build?

If the answer to EITHER, is yes - the threshold for less than 20% down has increased to $1.5M

Formula =the minimum downpayment is 5% for the first $500,000 of Purchase Price and increases to 10% for the portion over $500,000 only

Purchase Price $600,000

First $500,000 the minimum downpayment is 5% = $25,000

Portion above is $100,000 the minimum downpayment is 10% = $10,000

Purchase Price $600,000 has a minimum downpayment is $35,000

Purchase Price $1,200,000

First $500,000 the minimum downpayment is 5% = $25,000

Portion above is $700,000 the minimum downpayment is 10% = $70,000

Purchase Price $1.2M has a minimum downpayment is $95,000

Subject to stress test qualification, including acceptable income and credit.

MMM