Each Monday, we'll be creating a new video showcasing questions we've received from both buyers and sellers and will be sharing our answers with you. We'll be posting the transcription here as well as a link to the video on YouTube as we know some of you prefer the videos while some prefer reading. CLICK HERE to watch this week's show!

Transcription

Hey there! Nick Deckard here with Ron Gifford and Associates. I'm actually at an open house right now, but I just had a buyer come through who asked me an interesting question that I've quantified and helped people with many times and I just got a novel idea - I'm going to start answering these frequently answered questions. 

One a week of questions that most buyers or sellers have asked at one point or another and start putting them out there weekly for you guys. Just a question and answer session. 

So this particular buyer - pretty easy question. How much do I need to put down? 

You think it's an easy question, but there are a few different caveats for that. It especially depends if that's is going to be your primary home, secondary home, or investment property. So we'll take it one at a time through the different loan types. 

Ultimately, your lender is going to be able to tell you exactly what you need, but here are some guidelines. 

In Ocean City, if you're going to be buying a secondary home, the minimum that you have to put down as 10% versus if it's your primary, depending on loan type, might be as little as 3%. Now, depending on the price of the home that you're purchasing, if you're going to need a jumbo loan, that typically is 20% minimum, though it could be higher depending on the lender and how the loan is going to be structured. 

A very new change to minimum down payments happened recently for condos that are in a building with four or more units. So there are plenty of those here in Ocean City. I know we're primarily single family and duplexes, but any building with four or more units now and going forward unless the laws change again, you will need 25% down at a minimum. 

Keeping that in mind will allow you to plan and also to see what type of property might be the best fit for you and what you're looking for. 

So if you have any questions on this, feel free to reach out. My cell phone is 609-602-2847 and I'd be happy as well to send you the information for a couple of local lenders that we do a good amount of business with who take very good care of our clients and are extremely knowledgeable on the local market.