Changes to the amount of downpayment required for homes purchased over $500,000 were announced today.
Effective Feb 15, 2016, down payment
requirements for the purchase of a home will increase to 10% for the amount
over 500K. Up from the minimum of 5% formerly required
As an example a home sold for $700K will require a
minimum down payment of 5% on the first 500K ( for a total of $25,000.00) and 10% on the remaining balance of $200K ( an additional $20,000.00) for a total
minimum down payment of $45,000.00. Today and up until the 15th
of February, 2016, the down payment is $35,000.00 (the old requirement of 5%).
I fully expect that institutional lenders and banks may get
a jump start on this process and they may change their minimum requirements earlier.
Contact me today for up-to-date market information or a free Home Value Report.
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