Down Payment requirements…
One of the most common questions is, “How much do I need for a down payment?”
- Conventional Loans: Starting at 3% down
- FHA Loans: 3.5% down with a credit score of 580 or higher. Buyers with a score between 500 and 579 generally need 10% down
- VA Loans: 0% down for eligible veterans and active duty military members
- USDA Loans: 0% down for qualified buyers purchasing in eligible rural or suburban areas and meeting income requirements
- Jumbo Loans: Usually require a minimum 10% down
- Second Homes and Investment Properties: Most lenders require 10-20% down
The best loan program depends on your financial situation, credit, and the type of home you’re purchasing. If you’d like, I’d be happy to connect you with an excellent lender.
Requirements for Land Loans…
- Local Banks & Credit Unions: Rates average 6 to 11%, depending on whether the land is raw, unimproved, or improved
- Farm Credit and Rural Lenders: Geared toward larger parcels, farms, or ranches with competitive market rates
- Seller Financing; Direct owner financing with negotiable rates are usually between 4 & 10%
- Alternative Options: Utilizing a HELOC on an existing property is a common alternative to secure lower equity-based rates for the land
- Down Payments: Expect to put down 30 to 50% for raw, undeveloped land, as lenders treat it as a higher-risk investment
- Loan Terms: Shorter repayment windows of 5 to 15 years are standard compared to traditional 30-year mortgages
- Zoning & Plans: Lenders often require proof of intended use, utility accessibility, or a clear timeline for future construction.
What can I expect as out-of-pocket expenses…?
Besides your down payment and closing costs, it’s a good idea to budget for inspections and a few other items that may come up during the transaction. What you’ll need depends on the property you decide to purchase.
Here are some common prices for these expenses in Central Oregon:
- Home Inspection: $450 – $800
- Well Flow Test: $150 – $400
- Septic Inspection: $500 – $900
- Sewer Scope: $150 – $350
- Appraisal: $700 – $1500
If you are buying a manufactured home, some lenders require a Structural Engineer’s Certificate confirming the home is structurally sound, especially if there have been additions or alterations to the home. That inspection generally costs between $500 and $1,200.
Every property is unique, so not all of these expenses will apply to every purchase. Once we find the right home, I’ll explain exactly which inspections are recommended or required to help you avoid any surprises along the way.
Do you need a home Inspection?
Absolutely! While a Home Inspection isn’t required by your lender, it’s one of the best investments you can make when buying a home.
Buying a Home is one of the biggest investments most people will ever make in their lifetime. A licensed home inspector will evaluate the home’s major systems and components, including the roof, foundation, plumbing, electrical, heating and cooling systems, insulation, windows, and more. Their job is to uncover potential issues that may not be visible during a showing. Think of it as a health checkup for the house.
The inspection can provide peace of mind. Many findings are minor and simply part of owning a home, while others may be significant enough to renegotiate repairs, request a credit, or, depending on the terms of your contract, decide whether to move forward with the purchase.
No home is perfect – not even a brand-new one. My goal is to help you make a confident, informed decision by ensuring you know exactly what you’re buying.
What should I do before moving in?
The best move is to start preparing early – it will save a lot of stress.
If you’re currently renting, be sure to give your landlord the proper notice required. If you own your current home, contact your utility companies and let them know the buyers will be calling to transfer the utilities into their names on the day of closing. You’ll also want to contact the utility companies at your new home so everything is on and ready when you move in.
Now is a great time to start sorting through your belongings. Donate, sell, or discard items you no longer want or need, leaving you less to pack and move. The less you move, the easier and less expensive it will be!
Don’t wait until the last minute to reserve a moving truck, POD, or professional movers. If family or friends are helping, let them know the date early, so everyone can plan.
Then all that’s left is to meet with your Realtor, get the keys, and start making memories in your new home!
