Some people, particularly first time home buyers, feel intimidated at the thought of making a large down payment on a house. Sometimes, too, they feel some confusion about how much will be required.

The size of your down payment will depend on the price of the home you want to buy. It will also depend on your ability to pay, and the type of mortgage you get.

As a general rule, lenders like to see a 20% down payment for a conventional mortgage.  A conventional mortgage is one that is underwritten by a bank, savings and loan , or some other mortgage company.  A 20% down payment on $100,000 home would be $20,000.

If you are selling your current home in order to buy another, you may get enough cash to cover the 20% down payment. If you are a first time home buyer, however, you may have trouble coming up with that much money.

Certain mortgage options allow you to make a smaller down payment. Some lenders, for example, will accept smaller down payments if you buy private mortage insurance (called PMI).

FHA loans require an even smaller down payment, as little as 3-5%. If you qualify for a VA loan, you don't need a down payment at all. Many special loan programs  for first time home buyers also have a reduced down payments.

The principal behind these requirements is simple. lenders know from experience that homeowners who put a substantial amount of their own money into buying a home are less likely to default on the mortgage.

And if the mortgage is secured by an insurance policy (as in PMI) or by the government (as in FHA or VA loans), the lenders feel protected and they are willing to skip the requirement for the large down payment.

Any further questions, do not hesitate to contact me. I would be happy to counsel you or recommend a good mortgage broker who can provide the specifics on the various mortgage programs available to you.

Are you a 1st time home buyer? If so, attend our FREE workshop on Wednesday June 10th from 6-8pm at the Marriott Courtyard on Cherry Street in Burlington. The Burlington Free Press along with Northfield Savings Bank and Geri Reilly, top Realtor at at Coldwell Banker Hickok & Boardman Realty, will be sponsoring a free workshop on how to prepare for this life changing decision. We'll cover all the basics and answer all your questions. We'll also focus on how to get the Federal Stimulus to work for you and details on the 1st Time home buyer tax credit. Join us! For more info, dont hesitate to contact me at 802.862.6677 or geri@buyvtrealetsate.com . Hope to see you there!

Buying a home is a rewarding experience, often afforded as a result of years of hard work. With this form of luxury, though, come some additional responsibilities. Due to the widespread use of asbestos throughout the 20th century, it is essential for those involved in real estate to take the proper measures in inspecting and removing the mineral. Asbestos exposure has resulted in the development of severe lung cancers such as mesothelioma. Although medical technology continues to improve, mesothelioma claims thousands of victims every year in the United States alone. Mesothelioma can take anywhere from 20 to 50 years for mesothelioma to develop, making it extremely difficult for physicians to accurately diagnose this disease. The amount of asbestos-related incidents in the country has resulted in mesothelioma lawyer firms advocating and protecting victim's individual rights. The United States government and asbestos manufactures have been heavily criticized for concealing and not acting enough to inform the public of the dangers associated with asbestos exposure. The removal of asbestos must be undertaken by a professional abatement contractor who is trained in handling dangerous materials. In addition, most people are unaware to the fact that eco-friendly products can cut energy costs. Cellulose, cotton Fiber and lcynene are all green options to be considered. Cotton fiber is made from recycled batted material and treated to be fireproof. The United Nations Environmental Program states that usage of recycled materials such as green insulation methods and lighting can reduce energy use by 25 to 25 percent! These new alternatives will allow for a healthy lifestyle, free and clear of any damaging substances.

Asbestos in the Home

Courtesy of the Mesothelioma Cancer Center - www.asbestos.com